Virtual data room software has completely changed the face of modern-day deal-making. It has made M&As and other complex transactions faster and more efficient by offering:
24/7/365 data access from anywhere, anytime
Secure data management and sharing
Constant deal tracking
AI-powered insights
Secure and smooth collaboration
What makes data room platforms even more desirable is their ability to do all these things in a cost-efficient manner. That is why virtual data rooms have almost replaced traditional physical data rooms used in deal execution.
VDR technology is getting better and safer with time; online collaboration between all parties involved in the transaction is now more secure and transparent. A virtual data room not just facilitates due diligence in business transactions, but it is equally effective in deal sourcing, negotiations, and the post-merger integration phase.
Virtual data room tools are not just limited to mergers and acquisitions. They play a key role in ensuring safe private equity transactions and loan syndication. Data rooms are commonly used in various industries, including:
Biotech
Business agents
Accounting
Investment banks
Credit counsellors
Real estate
Energy
Legal
Government organizations
Consulting
Media
Pharmaceutical industry
Venture capital funds
Information Technology (IT) and Telecommunications
Health services
Financial consultancy
As the demand for data rooms grows, more and more VDR providers are entering the market. Basic data management and sharing services are common, but other advanced features may vary from vendor to vendor. However, the best virtual data room providers offer banking-grade security, multilingual support, and advanced features. The following is a list of top virtual data room providers you can trust.
Ideals Virtual Data Room
Ideals Virtual Data Room is a strong data-sharing platform used by more than 4,000 companies worldwide since 2008. This also includes a large number of organizations from the Fortune 1000 list. Ideals’ success comes from multiple elements like
Constant innovation
Ongoing research and development
Powerful cloud system, and
Multilingual, instant customer support
The company uses advanced document-sharing features and high-level security to help professionals meet all due diligence and compliance requirements. It is one of the most trusted data room platforms around the globe.
Intralinks Dealspace
Intralinks started in 1996 and provides secure tools for managing and sharing corporate data. It helps organizations control, manage, and share information using its virtual data room. Intralinks is a secure option for sharing data inside and outside the company. The company globally serves multiple industries, including finance, life sciences, technology, and manufacturing.
Merrill Datasite
Merrill Datasite offers a secure virtual data room that helps speed up the due diligence process for M&As, IPOs, and other important transactions. Its virtual data room allows corporations to complete deals more safely and effectively.
See how Merrill Datasite cuts down the time and cost of transactions by organizing documents in one place.
Brainloop Secure Dataroom
Brainloop Secure Dataroom is a virtual workspace with premium security, available 24/7 through a web browser or tablet app. It supports safe teamwork in a clear and protected online space. Brainloop gives complete protection to confidential documents. That is why organizations use Brainloop to share sensitive information during meetings, legal processes, research, and other business transactions.
SmartRoom VDR
SmartRoom offers virtual data room services to different industries, including capital markets, legal services, and corporate transactions. It allows secure document sharing, efficient control of important business data, and private discussions within the platform.
Watchdox by BlackBerry
Watchdox by BlackBerry offers secure mobile tools for sharing and managing data through a virtual data room. It helps teams ensure seamless collaboration and stay productive. Watchdox also uses advanced document protection and digital rights management (DRM) to manage corporate data shared within and outside the organization.
Box
Box is a secure platform for managing and sharing sensitive information. It started in 2005 and recently added a VDR service. Box virtual data room provides strong security, digital rights protection, and smart document storage. You can upload contracts, financial reports, and other documents for due diligence with full confidence. Several layers of security keep business data safe and allow teams to share important files from any device or location.
Dropbox DocSend data room
Dropbox DocSend Data Room offers a secure way to share sensitive documents with real-time control and analytics. You can track who views your files, for how long, and restrict access anytime. Dropbox data room is ideal for pitching, fundraising, and M&As. Features like watermarking, email verification, and download restrictions add an extra layer of security. Dropbox DocSend Data Room is designed to keep your sensitive information safe while giving you full visibility into the deal process.
What functions do virtual data rooms offer?
The primary objective of any virtual data room software during a transaction is to safely store, manage, and share confidential data. Furthermore, online data room providers help the sell-side to better prepare for the transaction and adopt a well-planned strategy. The target company can carefully review all the documents and foresee all the risks and vulnerabilities.
Therefore, the main features to look for when comparing VDR providers include:
Ability to manage multiple projects with one account
In addition to these, the best virtual data rooms offer several advanced security options, including multi-factor authentication, print screen key disablement, Q&A, time and IP access restrictions, Microsoft Office integration, and dynamic watermarks. Many virtual data room providers go beyond traditional customer support and offer in-person training if needed.
Virtual data room software can easily outplay a traditional physical data room or other cloud storage platforms like OneDrive.
Features
Virtual data room software
Traditional cloud storage
Physical data rooms
Security
Advanced encryption, multi-factor authentication, customizable access, and audit trails
Decent security, but lacks deal-specific protections
Prone to loss, theft, damage, and unauthorized access
Compliance
Compliant with industry standards like FINRA and HIPAA
May require enterprise upgrades for compliance
Difficult to track and maintain compliance
Access Control
Granular permissions for viewing, editing, downloading, and printing
Basic sharing settings and lack detailed tracking and time-based access
Location-bound and limited remote control
Deal Readiness
Specifically designed for due diligence, fundraising, M&A, and similar transactions
Great for daily use, but lacks professional tools for high-stakes deals
Outdated and impractical for modern transactions
Collaboration & Tracking
Real-time collaboration, document versioning, and full audit logs
Allows collaboration, but has limited audit trails and tracking
No collaboration features, and it is hard to track changes
Virtual Data Rooms Comparison
Choosing the right virtual data room provider can be a daunting task, as there are so many options available in the market. Buyers must know that all data room platforms are not equal. Here are some useful tips to help you get the most out of your VDR.
Know your needs
Start by asking yourself what features you will need for the project at hand. It is important to know what you want to get out of the virtual data room. Remember that the clearer every detail is, the better the overall experience will be.
Read online reviews
You will need to read virtual data room reviews and understand more about how a reliable VDR will serve you in a specific field or project. It is better to read reviews from unbiased and trusted websites as they only share legitimate feedback from real users.
Free trials
Another important aspect to consider when choosing the right VDR provider for your project is the availability of a free trial. Never purchase a one-year or six-month subscription without first trying out the free trial of your chosen provider. Typically, VDR providers offer a one-month free subscription, a 60-day trial, or a 3-month free trial. The length of the free trial period can vary depending on the specific provider.
Strong customer support
It is highly recommended to choose only from VDR providers that offer 24/7/365 support and not just during the business day, which may vary depending on the different time zones.
Industry-relevant experience
Always choose from data room tools that have already facilitated multiple transactions, including initial public offerings (IPOs).
In-house hosting
In-house hosting and management are important issues that should not be overlooked. It is recommended to choose from VDR providers that do not outsource any part of the data hosting or management process, as this could put your most sensitive data at risk.
Furthermore, the leading data room platforms offer a large number of amazing features that help you:
Collect, organize, and present your data online, and
Significantly simplify and speed up the transaction process
Here are some of the features that you might find most useful
Document security: data encryption, automatic backup, Print Screen key disablement, access restriction by time and IP, dynamic watermarks.
Access security: dual login authentication, mobile device management, and account theft prevention.
Functionality: Q&A tools, integration with Microsoft Office, activity tracking and audit log, drag-and-drop, bulk upload, etc.
Usability: Advanced search option, intuitive interface, easy-to-understand functions. Overall, it’s a good idea to choose a platform that’s perfect for both beginners and professionals.
Real-time reporting capabilities: activity tracking and audit logs.
In addition to all of these, you may want to find a provider that can customize the virtual data room to your specific needs. Finally, don’t forget to find out what bandwidth the platform you choose offers.
These are important issues to consider when choosing the right VDR for your project. We recommend the following comparison to determine which is the best virtual data room for your business. You are welcome to read the reviews and compare features, capabilities, and prices. We recommend paying attention to security and functionality aspects. Remember, you must first fully understand all the details of the project at hand and what your requirements will be from the VDR.
