Virtual data room providers

What is VDR?

A virtual data room is a secure online workspace that enables authorized parties to store and share files, and collaborate in complex business activities.

Virtual data room solutions are security-first applications that enable strong security features throughout the full project management lifecycle, from user authentication to project archiving.

An online virtual data room can also serve as a cloud storage and collaboration platform for day-to-day operations, board management, and all projects that require simultaneous contributions from several parties. Some of the most common examples of virtual data room applications are M&A, corporate due diligence, strategic partnerships, and capital raising.

Comparing the top 10 virtual data room software products in 2024

Below, you can compare the top 10 VDR providers based on user satisfaction, pricing, usability, and other criteria. This table will help you discover the key highlights of the 10 best data room software solutions and choose the one that aligns with your business objectives.

VDR Products Comparison Grid

Navigating the vast landscape of virtual data rooms (VDRs) can be overwhelming, which is why we’ve taken the initiative to streamline the process for you. Drawing from comprehensive reviews and firsthand user experiences across platforms like G2, Capterra, Software Advice, and GetApp, our comparison grid provides a holistic view of the VDR marketplace.

TWe delve deep into metrics encompassing market presence, user satisfaction, document management capabilities, ease of use, and customization options.

We’re dedicated to keeping our information up-to-date, so we regularly review and update our grid to ensure you always get the latest insights on VDR vendors.

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Wondering how to choose data room software? Deciding on the best virtual data room can be challenging, especially if you’re a newbie to the industry and have never dealt with virtual deal rooms before. 

There are over 100 data room providers for M&A on the market, and each of them comes with certain advantages and disadvantages. 

How to select the best virtual data room for business needs, then? Compare virtual data room services and see whether their features align with your project requirements. 

What criteria to pay attention to during the data room comparison? 

The data room comparison table we made above features the top 10 data room vendors, and it might significantly save time on the investigation. Still, there’s an option of making a virtual data room comparison on your own. Based on our experience, users achieve the best results with data room services if they pay attention to the following VDR software selection criteria.

Use Cases

According to our research, data rooms have plenty to offer to small, medium, and large businesses across many sectors. However, based on the recent intake, there are several industries that rely on virtual data room software the most.

Below are the primary virtual data room use cases in popularity order. 

M&A and due diligence

Mergers and acquisitions are crucial to the growth and development of anyone from small companies to large corporations. The biggest challenge of any M&A transaction is thorough due diligence. Multiple parties have to go over immense amounts of documents within relatively tight time frames.

Top-tier VDR solutions help create agile and equipped business environments for accessing the necessary files within seconds, which allows for making key decisions sooner. 

Case study: EW Scripps

In 2017-2018, EW Scripps used iDeals virtual data room to successfully sell over 30 radio stations for a total of $85 million. The company significantly simplified due diligence by using the virtual data room:

• Ensured controlled access to confidential information due to eight levels of permissions and innovative document security tools.
• Eliminated communication silos and centralized the due diligence process due to customizable Q&A workflows, built-in discussions, document redaction, and messaging tools.
• Tracked every action and ensured 100% accountability due to the built-in reporting system and full audit trail.

1. iDeals

4.9

2. Intralinks

4.6

3. SmartRoom

4.4

4. BOX

4.3

5. Citrix

4.3

6. Dealroom

4.2

7. Brainloop

4.1

8. Ansarada

4

9. Datasite

4

10. Venue

3.9

Funds and private equity

High-profile funds and private equity firms typically deal with a lot of confidential information. This calls for intensified security and internal transparency. Virtual data rooms deliver numerous collaboration tools for any process, from capital raising to investment advisory, by securing user data and granting access to data room activity analytics.

Case study: Heritage Group

Heritage Group is a healthcare-centered investment firm with over $700 million under management across three private equity funds. In 2020, Heritage Group used SmartRoom to improve data management and audits:

• Ensured top-notch security of investor communications due to document-level security tools and remote access retrieval.
• Shared dynamic fund insights and deal documents with investors in real time due to informative investor portals and activity alerts.
• Reduced administrative redundancies by 30% due to robust Q&A workflows and e-signature integration.

Legal

Lawyers and legal firms must comply with strict regulations to ensure the legitimacy of their practice. And at the same time, there are many sensitive documents and confidential business information to take care of. 

This means that the legal market segment is one of the first ones to benefit from virtual data room industry-leading features such as encryption, access control, and remote retrieval.

Case study: DMH Stallard

DMH Stallard is a British law firm with over 50 years of experience and over 380 highly-skilled law professionals. DMH Stallard used the Dfin Venue data room to improve its day-to-day services:

• Ensured robust customer data security due to watermarking, role-based access, virus scanning, and data encryption.
• Increased workflow efficiency due to quick access to central document storage and convenient Q&A process.
• Ensured GDPR compliance in customer deals due to protocol reporting tools and top-notch data security features.

Investment banking

As financial institutions that primarily operate on an advisory basis, investment banks require software solutions that combine simple and efficient communications with high-stake data storage. Investor bankers use data rooms to share confidential files, gather information, perform due diligence, present targets to potential buyers, and assist with post-transactional integration. 

Case study: Credit Suisse

Credit Suisse, an international M&A advisory group, facilitates hundreds of investment banking transactions yearly. In 2015, Credit Suisse successfully improved Q&A processes using Intralinks virtual data room:

• Processed over 2,500 Q&A in total and saved 3-4 hours daily with advanced Q&A management tools.
• Tracked and shared document and user activity due to informative insight dashboards.
• Ensured security and confidentiality of Q&A processes due to user permissions.

1. iDeals

4.9

2. Intralinks

4.6

3. SmartRoom

4.4

4. BOX

4.3

5. Citrix

4.3

6. Dealroom

4.2

7. Brainloop

4.1

8. Ansarada

4

9. Datasite

4

10. Venue

3.9

Biotech and pharma industry

Healthcare and life sciences industry deals with escalated amounts of confidential data, such as patient info, research results, and more. A failure to secure such data can result in competitor espionage or even a full-scale lawsuit.

Data rooms help life science companies protect sensitive information and navigate complex, time-consuming procedures such as licensing. By storing all the necessary documentation in one centralized space, companies can obtain the needed licenses much faster.

Case study: SyneuRx

SyneuRx is a Taiwanese biotech company that develops COVID-19 treatments. In 2022, SyneuRX partnered with iDeals to protect customer data and clinical discoveries. The company used the data room to:

• Secure clinical discoveries while sharing data between hundreds of users due to remote data control, privacy folders, and role-based access. 
• Communicate with American, Chinese, and European investors simultaneously in separate investor portals. 

Comply with ISO 27001, GDPR, GCP, HIPAA, and other standards for medical and biotech companies due to compliance-centered VDR.

12 Reasons Why Choose VDR

Setting Up

Once the suitable provider is selected, the only thing left to do is set up the virtual data room for the upcoming transaction. This can be done in three steps.