In reviewing the top virtual data room providers on the market, we incorporated many factors and highlighted important features that are critical to the success of any business using a virtual data room. So let’s dive in.
Top Virtual Data Room Providers Reviews
- What is a Virtual Data Room?
- Why should you consult virtual data room reviews?
- Why use a virtual data room?
- Virtual data room security
- Virtual data room solutions
- Who uses virtual data rooms, and where?
- What to look for in a virtual data room provider
- How to choose a perfect virtual data room provider
- Virtual data room reviews: wrapping up
What is a virtual data room?
A virtual data room is a cloud-based software that provides a secure virtual environment for businesses to conduct business deals. These deals involve the storing and sharing of sensitive data that should be protected from unauthorized access. From M&A due diligence to fundraisers, audits to capital venture transactions, the virtual data room provides the safest repository to share and store confidential data.
Virtual data rooms have brought a revolution to the way deals are made in businesses and corporations. Security has been a challenging concern for closing deals and sharing sensitive data — but innovative VDRs have found ways to tackle the issue.
Virtual data rooms are known as a secure way for document storage, which can be accessed simultaneously by multiple parties. It’s better than physical document storage, as it eliminates the risk of document loss. This software is used by businesses during important transactions, such as merging, acquisitions, as well as other joint ventures, requiring sharing sensitive data.
Why should you consult virtual data room reviews?
When choosing a VDR provider, it’s worth reading various VDR reviews. It helps you to better understand what the user experience looks like and what you will get. From reviews, you can learn a lot about virtual data room service providers, their reputation, and their position in the market.
Data room reviews serve as an inside look into the software, which is very useful for those who haven’t used data rooms before. Here are the main reasons why professionals who want to implement virtual data room service into their business processes should consider going through data room reviews:
Reviews allow you to compare the provider’s functionality
Virtual data room reviews give you a bigger picture of the data room software features. There is a basic set of features almost all virtual data rooms offer. However, to stand out many top virtual data room providers have a wide variety of advanced features, which can be added by paying an additional fee or can be already included in the subscription.
Also, from reviews, you can learn whether all features work the way the provider describes them on their website. Sometimes there can be small bugs in the software, which are not noticeable during the free trial period, however, when you use the software for a bit longer you may face some technical issues. This makes online reviews a great source of information to better understand what you’ll get from the data room long term.
Data room reviews help to identify your deal’s requirements
When handling a complex deal, it’s worth applying best practices to use a virtual data room efficiently. Through reading reviews you can learn about the experiences of other professionals working in your industry that had similar deals. Many users share their tips and tricks that helped them handle a certain deal and get the wanted outcome.
With reviews, you can check the provider’s support
Customer service plays an important role in the overall user experience. The best data room providers offer responsive 24/7 support, which can help resolve issues with the data room software in just a few minutes. In reviews, professionals share their experience interacting with a certain provider’s customer support and how they handled an issue.
See user’s opinions on different data room providers
Based on reviews, you can compare virtual data rooms and see which opinion users generally share regarding a certain provider. This will help you to make a better decision when choosing a virtual data room solution.
You can see which opinion about your preferred virtual data room other experts have, which will influence your decision. It’s also recommended to check multiple resources, where people write their reviews. It’s always good to conduct a virtual data room comparison based on thoughts collected from various websites.
Why use a virtual data room?
Compared to physical data rooms, virtual data rooms simplify the deal process by providing the needed tools for collaboration and secure sharing of sensitive documents. Besides that data room software serves as a powerful business tool allowing companies to accelerate their processes and improve the workflow. It can boost up not only small but also medium and large businesses, operating in a variety of industries, including investment banking, private equity, tech, finance, and more.
The main reasons to use data room software for document sharing and managing business transactions include:
Security and data protection
When you need to exchange confidential documents and manage sensitive corporate documentation, security is the most critical aspect of reliable virtual data room software. The best data rooms offer advanced security features, including:
- digital watermarking
- complex authorizations
- restrict access to files
- granular access control
and other file tracking features that eliminate the potential of illegal distribution and viewing of confidential documents.
Compliance with international regulations
As a secure online repository, a data room has to comply with the strictest international security standards and provide proof of having certain security certifications to be a secure platform for medium and large businesses. Certified data rooms guarantee your documents will be stored and shared according to international standards. The most important certifications for any secure virtual data room include ISO 27001:2013, SSAE 18 SOC 1, SOC 2, and SOC 3, GDPR, HIPAA, and others.
The virtual deal room offers a wide variety of communication and collaboration tools, like for example Q&A section, that allows users to work together on multiple projects and securely share confidential documents with certain users. These are the key features that streamline the deal management process and make information and file-sharing quick and easy.
Increased deal speed
Virtual data room services include features such as bulk uploads, file indexing, and others that ensure all crucial system processes are in one place. Good data management leads to faster operations and better deal outcomes.
Virtual data room tool is much more convenient than traditional data rooms. The main advantage is that you can access files in an electronic data room from anywhere in the world anytime. This makes international deals faster and easier to close.
Confidential files stored in a virtual deal room are well-organized, making it easy to find the right file when needed. Online data rooms also have great notification systems that ensure each party involved in the transaction is on the same page and instantly gets information regarding all updates.
The data room industry is constantly evolving and providing more and more advanced functionality to make document management and file sharing as convenient as possible.
Virtual data room security
Security is the highest priority for secure file sharing and storing in virtual data rooms. In the digital world full of cybersecurity threats and risks, advanced features and best security practices support data security within the best virtual data rooms on the market. Thus, the virtual data room treats security with utmost priority, and it’s the major reason why VDR service providers are contracted.
Some of the primary features of a secure virtual data room include:
- Encryption. Data and files in the virtual data room are ciphered with advanced data encryption systems like the 256-bit SSL/TLS, providing the needed document security. Even messages shared between both parties are encrypted, so unauthorized users can’t view them.
- Certification and compliance. A secure data room should adhere to industry standards to ensure security certifications and to stay compliant with ISO 27001, HIPAA, SOC 1, and SSAE 16 certifications, among others.
- Customization permission settings. Access security is another important aspect to point out, as it prevents confidential data from being exposed to the wrong people. Administrators can set individualized access permissions for files. The permissions can be customized without the stress of reconfiguring them for each user whenever the administrator needs to share a file.
- Remote shred and wipe. In the event where data is lost, or a device is stolen, the administrator can remotely wipe all encrypted data from the device. The remote shred feature allows the administrator to set the exact time a document will be available for download, and access to files can still be revoked even after it has been downloaded by any authorized user.
- Secure document viewers. The document viewers in the virtual data room are secure to be less susceptible to attack. They are also encrypted to limit unauthorized access.
A secure virtual data room is a tool that not only serves as a secure file sharing platform but also provides the needed functionality for corporate development. As a document management solution, it helps businesses keep all important files organized and prepared for any needed activity.
Virtual data room solutions
One of the most prominent solutions that the virtual data room provides is optimal security for confidential data. Data is secured while being stored and its safety is assured when being shared in the virtual data room as it may involve M&A deals, IPOs, fundraisers, or similar business dealings.
This is made possible with the use of high-end encryption, two-factor authentication, customizable permissions, granular document, access permissions, and more. The security protocols in place are also compliant with relevant standards while also receiving certifications from ISO 27001, HIPAA, SOC 1, and SSAE 16.
Other vital solutions provided by a virtual data room include:
- Secure data management
- Tracking of actions within the platform
- A chance to share documents
- Running several projects simultaneously
- 24/7 customer support
- Integration with existing IT infrastructure
- Extended search system and filters
- Compatibility with smartphones
Virtual data room solutions are suitable for many complex projects and transactions. Its vast functionality allows professionals to effectively engage with third-party experts without the worry that confidential information will get leaked or stolen.
A good VDR solution is usually available in multiple languages, which makes it easy to manage international projects and communicate with professionals from different countries. VDR users choose the best solution suitable for their specific company, as it allows them to enhance corporate development.
Who uses virtual data rooms, and where?
A data room has many practical uses in the business world and can be deployed by organizations in various industries.
For use cases, the virtual data room can be deployed for:
M&A due diligence
During a merger and acquisition, each party needs to conduct due diligence to reduce risk. Profiles, financial assets, and records need to be vetted — and this involves sharing sensitive data. The virtual data room provides a secure repository for these documents to be shared and viewed.
Initial Public Offerings (IPOs)
Initial Public Offerings require a significant amount of time. The process involves an immense number of financial records, as well as confidential and sensitive information. The virtual data room provides a haven to store these documents until they’re ready for viewing.
Fundraisers and capital financing
During fundraising, data rooms make the process transparent for investors. Authorized users can track progress in real-time. For capital financing, investors should have access to the files they need, with a venue to ask questions where they can get prompt answers, and also the capability to share their own documents within the data room.
Whether a company is looking to comply with industry standards or wants to do an internal investigation, the data room provides a secure repository for all documents to be audited. Audit log features offered by most virtual data room providers make the process easier and more effective.
Companies seeking partners can leverage data rooms to share files. In the process, authorized users may be granted permissions to specific confidential information, while being denied access to other private or restricted files.
Establishing a VDR corporate repository requires big storage and the ability to manage access to files. Even the company that was recently launched or still is in the developmental stage needs to have a reliable corporate repository with confidential data. Online data room is an affordable solution for companies of any size that can bring long-term benefits through the optimization of crucial business processes.
Real estate management
Managing real estate deals requires dealing with big volumes of documentation. Especially, when the company not only does sales and purchases facilitation, but also offers various advisory services, property valuations, and other services relevant for potential real estate buyers. The data room software is ideal for real estate management, as it has an option for bulk file upload and automatic file indexing, which helps to have all documents well-organized within the online data room.
Businesses and organizations deploying virtual data rooms include:
- Government agencies
- Venture capitalists
- Business brokers
- Real estate
- Legal firms
- Consulting firms
- Banking and financial services
- Investment banking
- Pharmaceutical and Healthcare
- IT companies
What to look for in a virtual data room provider
When looking for the best virtual data room provider, there are certain features you need to look out for. We incorporated some of these features in our data room reviews and will be shedding more light on them here. Being aware of these features will help you get the best out of your online data room providers and also provide a better data room experience. To guarantee this, we’ve highlighted some important features to look for in a virtual data room provider.
- Security features. As emphasized, security is a top priority, and you need to look out for needed features from the data room provider. How secure is it? What are its security certifications? How strong is its encryption?
- 24/7 support. How robust is their support system? Do they offer 24/7 support? Through which channels do they offer support? Email and by phone are best because they tend to be quicker.
- Ease of use. Explore the user interface to see how easy the software is to navigate. It should be intuitive so users can quickly learn to feel comfortable storing and sharing documents in the data room without assistance.
- Convenient pricing plan. Check their pricing structure to ensure that it aligns with your budget. A reputable provider should offer various pricing options, including — at least — monthly, biannual, and annual plans. A provider with several pricing alternatives gives you more flexibility to make sure it makes financial sense.
- Reputation. Doing some research and reading users’ online data room reviews will give some insight into the provider’s reputation. You will also get a sense of which industries the provider specializes in.
Most virtual data room service providers offer outstanding document security, but still, the best data room providers on the market take an extra step to provide their clients with the newest security functionality and practices.
How to choose a perfect virtual data room provider
The wide selection of virtual data room providers can make choosing the best software a bit difficult. However, we’ve collected some of the industry’s leading providers to help you find the right software.
1. Define the necessary features
Prior to starting your data room research, it is important to identify your needs and which goals you’re trying to achieve by using VDR. When you see exactly which features your business lacks, it becomes much easier to narrow down your options. Start with VDRs that offer:
- Security. When choosing a provider, make sure to check its virtual data room security certifications and whether it’s compliant with international standards (SOC 1 & 2, HIPAA, ISO, etc.). Also, check security features, such as multi-factor authentication, encryption, digital watermarking, redaction, and remote shredding to prevent illegal sharing or copying of files.
- Document management features. There are also VDR options with great management features, including commenting, assigning tasks, and adding notes. These will help to make project management easier and the overall workflow better.
- Permission settings. With these features, you will have full control over your documents. You can assign permissions to different users and track their document activity, making sure everything is done correctly.
- Q&A section. The Q&A feature is extremely helpful during due diligence when users need important documents within the data room. It allows for easy communication within the data room and to receive alerts for new messages.
- Analytics. With tracking features, you’re kept abreast of everything going on in the data room. You see all users and their activity within the room. It’s important, as it provides deeper analytics and reporting opportunities.
- Customer support. Make sure you find a provider that offers responsive 24/7 customer support. This is especially relevant for those who use data rooms with users in different time zones. If you have any issue with your VDR, you should be able to contact the support and get a quick response, no matter what time it is or what language you speak.
2. Set up a budget
Data room providers have variable pricing models. These solutions can be cost-effective if you have a budget and are aware of additional fees that may appear throughout your work within the data room. There are several aspects to consider that usually determine the pricing of a VDR:
- A number of users. VDR software can be used by a limited number of users. That’s why it’s important to know how big your project is, so you can find a provider who allows the needed number of users. Some vendors charge additional fees for more users.
- Storage. Some pricing options depend on storage capacity, meaning you’re charged based on the number of gigabytes. The data rooms with storage pricing are usually very expensive.
- Per-page pricing. This is not a popular pricing option, however, many VDRs still charge this way. It’s a great choice for those who want to manage small projects. It will not be suitable for large projects, as there will be additional charges.
- Features. Some features may affect the cost of the virtual data room.
- A flat rate. This is usually a monthly payment that includes a set number of users, unlimited pages, and storage. This option is very convenient for your project’s budget, as there are no unexpected additional charges.
3. Compare data room vendors
Comparing data room providers allows you to better understand which solution meets your requirements. Many websites provide short and detailed comparisons of the virtual data room vendors that can help you make a better decision.
Checking reviews helps you learn more about user experiences and allows you to determine the provider’s reputation.
4. Read reviews
Continuing the topic of reviews, it’s worth checking out different forums, websites like Quora, and other resources besides going through comparisons. There are many sites that post fake reviews bought by the company. That’s why diversifying your research resources will give you a bigger picture of the overall usage of a particular data room provider.
5. Contact the providers
After you review all providers with suitable features, you can start reaching out to them. You can review their website to see if you like their design, whether their site is intuitive and easy to navigate. You can contact vendor representatives by phone or chat.
This will show you whether the representatives are well-informed and ready to help. You can also ask them to clarify the pricing options and features. You can also ask a representative if other businesses within your niche also use this VDR solution, so you know how useful it can be.
6. Ask for a demo
Before committing to one VDR solution long-term, consider a free trial first. You need to test the platform to see whether you like the interface, its efficiency, and your overall user experience. During the free trial, you can evaluate whether the provider offers secure file sharing and suitable functionality for your business needs.
Also, keep in mind that your team members are going to use the VDR as well, so make sure you check how easy it is to navigate and manage files for those who’ve never used data rooms before. Some users have never used any VDR software before, so it’s worth checking whether the provider offers comprehensive training, additional learning resources, and responsive customer support.
By following these simple steps, you will be able to quickly find the virtual data room that fits your needs and will improve your business processes.
Data room reviews: wrapping up
VDR reviews offer a deep insight into some of the industry’s best data room providers. They can give an understanding of their finest offerings and best features to help organizations decide which provider suits their needs. Armed with the right information on how to choose the best virtual data room provider, informed decisions can be made. This is why we’ve given the criteria that formed the basis of our virtual data room review to help you decide better.