Compare and select a VDR with our ultimate guide

Data room comparison guide:
how to choose the best VDR

Virtual data rooms are a critical tool for many businesses. The market offers a variety of solutions, making it difficult to choose the right one. It’s crucial to note that not all virtual data rooms are created equal. In fact, the features and capabilities of different providers vary significantly, making it essential to evaluate the available options carefully.

In this article, you will find a comparison table of the best virtual data room vendors for specific use cases and a series of recommendations and considerations on how to compare features and select your ideal solution.

Best data room providers for specific business needs

Due diligence, M&A, and fundraising are the best examples of transactions where virtual data room software is essential. In the following sections, we’ll analyze which virtual data room providers offer the most suitable solutions for each use case.

Due diligence

Performing due diligence is a crucial step in any high-level business transaction. This process involves reviewing large volumes of confidential data, which can be a time-consuming task. A virtual data room is an indispensable tool that helps you complete this process efficiently.

By providing a secure environment for the process of file sharing, tracking, and distribution, a virtual data room can streamline the due diligence process and help ensure that all parties involved have access to the information they need.

To simplify and speed up the due diligence process, virtual deal rooms offer a range of features, including:

• Bulk upload
• OCR search
• Fence view
• Detailed audit trails
• Remote purge and wipe
• Time-based access expiration
• Built-in redaction
• Built-in Excel viewer with formulas
• Document labels

Best virtual data rooms for due diligence

The online data room providers below have extensive experience in the industry, serve clients all over the world, and facilitate thousands of transactions each year. That’s why they’re globally considered to be the best data rooms for due diligence:

Ideals — widely recognized as the leading VDR provider for due diligence, with exceptional customer care and robust security features

Intralinks — one of the first providers to offer a secure virtual data room for due diligence, according to all expertise

Firmex — a comprehensive solution with reporting features and customizable permissions to support due diligence

Ansarada — specialized in M&A due diligence, dividing users into the buy- and sell-side categories, great user oriental features

Donnelley — over 40 years of experience in document management and due diligence support, have such a good feedback

M&A

Since 2000, there have been about 800,000 transactions announced worldwide with a value of over $57 trillion. The intensification of the M&A market increases the demand for reliable and efficient technology to facilitate these transactions. This is where the best data room software comes in — providing businesses with a secure and efficient way to close deals from anywhere in the world.

One of the most valuable aspects of the data room market is the wide range of providers that offer granular reporting capabilities. This allows M&A participants to gain deeper insights into the deal by tracking which files are the most viewed and which users are the most active.

Best virtual data rooms for M&A

The following virtual data room solutions are considered the best for M&A transactions, guaranteeing the necessary secure file storage capabilities and the most satisfactory VDR experience:

Ideals — known for customizable workflows and advanced analytics tools that help M&A participants make data-driven decisions

Ansarada — AI-powered tools that make the M&A process more efficient and secure, allowing teams to close deals faster

Datasite — recognized for machine-learning capabilities helpful during M&A transactions

Firmex — offers a set of tools for efficient workflow management, making it a good choice for M&A

SecureDocs — a user-friendly solution with sophisticated document security measures necessary for M&A

Fundraising

A virtual data room solution is also a valuable tool for companies looking to raise funds more efficiently, securely, and transparently. Firstly, they provide a centralized location for investors to access confidential documents such as financial statements, pitch decks, and business plans.

Secondly, they offer collaboration tools like comments, annotations, and in-built Q&A that improve communication and reduce the need for in-person meetings. This saves time and resources and facilitates decision-making, ultimately resulting in more successful fundraising.

Best virtual data rooms for fundraising

The five providers below are trusted by companies worldwide and considered the best data room for startups and businesses seeking financing:

Ideals — a highly customizable platform with advanced reporting and analytics capabilities, extremely valuable during the fundraising process

Citrix — known for content collaboration solutions that help startups and investors collaborate effectively

Box — an easy-to-use platform with features like version control and audit trails, helpful during fundraising

AdminControl — an intuitive platform with secure messaging to communicate with investors

Digify— offers analytics and statistics that help fundraising teams track and analyze investor activity

Key factors to compare when choosing a virtual data room

Choosing the best virtual data room requires evaluating several important aspects to ensure it meets your business needs. Here are the main areas to compare:

1. Virtual data room pricing
   There are different data room pricing structures, including fixed-fee, storage-based, and user-based plans. Understanding virtual data room costs ensures you choose a solution that fits your budget.
2. Vital features
   Essential tools like secure document sharing, access control, audit logs, built-in redaction, and collaboration features improve efficiency. The best data room services offer these to streamline workflow.
3. Accessibility from multiple platforms/devices
   A reliable VDR service should work seamlessly across desktops, tablets, and mobile devices, ensuring secure access anytime, anywhere.
4. Security level
   Look for encryption, multi-factor authentication, watermarks, and granular user permissions. The best secure data room services protect sensitive data from unauthorized access.
5. Third-party tool integrations
   Some virtual deal room services integrate with platforms like Microsoft Office, Google Drive, and CRM systems to enhance productivity and data management.
6. Customer support, onboarding, and training
   Reliable VDR services offer 24/7 support, training materials, and dedicated onboarding to help teams use the platform efficiently.
7. Verified reviews
   Checking data room reviews from independent sources provides insight into user experiences and helps businesses select a trusted provider.
8. Industry-specific experience
   A provider with industry expertise understands specific business needs and offers tailored services for compliance and efficiency.
9. Overall benefits for business
   The right VDR service improves productivity, enhances security, simplifies collaboration, and speeds up transactions, making business operations more efficient.

Other use cases for virtual data rooms

Beyond due diligence, M&A, and fundraising, secure virtual data room services support various business needs, including:

• Fundraising
  Startups and established businesses rely on virtual data room services to attract investors and streamline capital-raising efforts. A virtual data room provides a centralized space for sharing sensitive documents such as business plans, financial reports, and investor presentations.
• Legal and compliance
  Law firms and legal departments use datarooms to securely store and exchange sensitive documents. Secure document sharing ensures confidentiality when handling contracts, intellectual property files, and regulatory filings.
• Real estate transactions
  Real estate professionals rely on electronic data room providers to manage large volumes of sensitive data, such as lease agreements, financial statements, and property records. Secure document storage and control access features allow multiple parties to review files without compromising security.
• Investment banking
  Investment bankers choose data room software to facilitate deal sourcing, financial audits, and portfolio management. Secure document management tools, including optical character recognition, help streamline due diligence and improve efficiency.
• Life sciences and pharma
  Companies in biotechnology and pharmaceuticals use virtual data room services for regulatory submissions, clinical trial management, and intellectual property protection. Secure data room software ensures the safe handling of research data and compliance with industry standards.

Data room selection checklist

Choosing the right virtual data room is crucial for secure document management, collaboration, and smooth business transactions. Use this checklist to ensure you select the best VDR for your needs.