3 Best Virtual Data Room Software & Buyers Guide


Diligence management platform World’s first platform designed to reduce work & track progress Utilizes analytics on one centralized project management system 40% faster 50% less expensive Serves businesses of all sizes of financial transaction workflows.

iDeals Virtual Data Room

Sophisticated Trusted provider Experienced Exceptional results Tried & tested by Investment bankers Lawyers Managers Most result oriented Flexible Always listen to customers Most secure Comfortable Fast solution to achieve strategic goals for transaction

SecureDocs Virtual Data Room

Easy-to-use Industry-leading Set up in minutes Trusted around the world for Fundraising M&A Licensing deals Strategic partnerships Audits Business valuations Legal events Choice for expedited deal management Store and share sensitive documents 

Virtual Data Room Software

Virtual Data Room Software provides businesses secure place to share vital financial and legal documents with sensitive customer information. This type of solution is used by many accounting firms, law firms, commercial real estate dealers, and many other companies that wish to ensure due diligence in their workspace.

Let’s understand why a Virtual Data Room is more secure. First consider all the insecurities introduced while relying on email attachments. Let’s take an example where your company emails a contract are served as a .PDF or .DOC file to a customer for a signature. In theory,it is understood that customer could:

  • Claim they never received it, could not open or view it
  • Get the print or copy the contract and utilize it to solicit better bids from every competitor
  • Download the contract to an insecure workstation from where it may get leaked
  • Use solution to surreptitiously edit parts of the contract and pronounce it to be the original

Now get a case where that instead of a contract, you are required to share confidential information that has regulatory or legal protections, such as a client’s investment or health records. Sharing sensitive documents via email opens up a range of legal liabilities.

It’s vital to remember that file sharing tools, like Sharepoint and Dropbox, can also introduce the similar vulnerabilities like that of sharing files via email. While convenient, file sharing services like these are not a viable alternative to a VDR.

Keep in mind to keep the company on the right side of the law, but lose money proving it in court. Virtual Data Room are designed to prevent these scenarios from happening in the very first place. They achieve this by adding various features and protections that email services lack.

Advantages of Virtual Data Room Software

Improved tracking and reporting: Easily tracking document changes and other user activities ensures an immutable audit trail. Scheduling automated reports and exporting  data to get insight into virtual data room activities.

Simplified due diligence: It is better to know about the financial situation and any potential liabilities or opportunities. Virtual data rooms simplify the sharing of confidential documents with checklists, versioning, bulk uploads, and some other features for ensuring due diligence can be performed fast and efficiently.

Strengthened security: Virtual data room software offers a powerful protections like multi-factor authentication, strong encryption, and single sign on (SSO) integration. Shared documents can further be secured with printing restrictions, watermarks, and access expiration. Most products provide compliance with common security standards like HIPAA, GDPR, PCI DSS, and SOC 2.

Features of Virtual Data Room Software

Access Controls/Permissions: Restricting access and setting levels of authorization for specific folders and files.

Data Security: Protecting digital privacy via secure online viewing of sensitive documents.

Data Storage Management: Managing and storing documents and assorted data in a centralized database.

Audit Trail: Tracking changes over time with all the detailed timestamps and records.

Document Indexing: Tagging documents for easy identification and filtering.

Collaboration: Working collectively on a project while sharing and communicating information within the system in real time.

Price of Virtual Data Room Software

Most products in the market are priced on a per virtual data room basis, and pricing can be divided into three pricing tiers based on their starting per room, per month price.

Considerations while Buying Virtual Data Room Software

Complicated business deals like mergers and acquisitions take place often across multiple time zones. If a deal gets hung up as someone can not access a document, you are required to support immediately. Ask the vendor for the support is available 24x7x365, and find out about service level agreements ahead of time. VDRs support job flows in three typical areas:

Financial: Mergers and acquisitions are the most general scenario requiring use of a VDR. With M&As, the number of parties requiring to access the information changes over time because the deal is analyzed, considered, discussed and agreed to or rejected. VDRs also provide records of access, which can be very useful for settling disputes and proving that the vital disclosures were made. Initial public offerings are common activity for which VDRs are employed.

Scientific: VDRs play an vital role in scientific industries, permitting for the secure sharing of data between manufacturers, research institutions, trial partners, healthcare providers and regulatory agencies. VDR collaboration tools are particularly important for many workflows and scientific processes.

Legal: VDR sellers specialize in tools designed to support legal litigation. Lawsuits can get into massive quantities of documentation which requires to be selectively shared, with many outside parties. VDRs play an necessary role in not only making specific information available, but also in preventing accidental disclosure.

Virtual Data Room Software Trends

AI tools accelerating research: More and more virtual data room software providing AI tools that fastens the research and due diligence efforts required for complex business transactions. AI tools helps in automating the process of organizing and analyzing thousands of documents while quickly providing insights into opportunities and risks.

Customization becoming more common: Increasingly, virtual data room software have customization options that allow for company logos, color schemes, and banners to create a branded space. Some vendors are going even further by offering custom domain names, white labeling, and fully customizable  job flows to make a truly tailored virtual space.