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
Virtual data room reviews: our criteria
A couple of factors were considered in the course of this virtual data room review to ensure that every virtual data room provider was worthy of making the list. Beyond just providing security, which is seen as foremost, there are other factors that make a virtual data room the top choice for deals and storage of data by organizations. The factors focused on included:
- Document security
- Intuitive user-interface
- Document management solutions
- Providers reputation
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 are confidential and 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 virtual data rooms have found ways to tackle the issue. Take your time to choose a trusted and reliable vendor offering all the services that meet your needs.
Virtual data room security
Security is a priority whenever storing or sharing documents. Thus, the virtual data room treats security with utmost priority, and it’s the major reason why data room service providers are contracted.
Some of the primary security features of data rooms include:
- Encryption. Data and files in the virtual data room are ciphered with advanced data encryption systems like the 256-bit SSL/TLS. Even messages shared between both parties are encrypted, so unauthorized users can’t view them.
- Certification and compliance. Virtual data rooms 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. 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.
Virtual data room solutions
One of the most prominent solutions that the 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 secure 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
Who and where does use virtual data rooms?
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.
- Audits. 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.
- Strategic partnerships. 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.
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
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
Virtual data rooms 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 provider 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.
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.
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.
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 virtual 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’ virtual 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.
Virtual data room reviews: wrapping up
In Data-room-reviews.us we offer overviews of the most popular of the industry’s data room providers. They can give an understanding of their finest offerings and best features to help organizations decide which provider best 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.