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In Smart Gadgets Last updated: July 11, 2023
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Virtual Data Room (VDR) services have been garnering a lot of popularity lately as businesses are slowly realizing their benefits.

In modern times, where security has become a major issue for organizations and individuals alike, VDR solutions offer a secure online space for storing and sharing sensitive data and files.

These solutions come with state-of-the-art security policies and encryption protocols to store and share sensitive files that authorized people can only access. 

With many VDR providers available in the market, users can sometimes feel overwhelmed to choose one.

To make that process easier for you, I have come up with a list of the best virtual data room providers for secure dealmaking.

Let’s discuss VDRs in detail and their benefits before talking about the best VDR providers.

What is a Virtual Data Room? 

A virtual data room (VDR) is like a secure online repository that organizations can use for storing and distributing sensitive data. 

It’s also known as a virtual deal room because it allows organizations to communicate, make strategic decisions, and also handle workflows in a controlled environment (like a physical room) with access to all the required data. 


Usually, a VDR is secured through top-notch encryption, security protocols, two-factor authentication, and single sign-on control. Thus, organizations can conduct large-scale M&A deals with ease and safely. 

VDRs have become an essential tool for modern businesses to share important company data with clients and vendors without requiring any physical interaction. Unlike physical data dealing rooms, this electronic data room saves you from the clutter of huge physical paperwork and treats you with modern document management. 

With VDR, organizations can improve their business workflow and enhance the productivity of the team while enjoying a safe collaboration platform. As a user, you have to make a special request to access your data in a VDR, and if you are qualified, you will get a quick response.

How Does a Virtual Data Room Work?

A VDR works as a safe repository platform or tool for all the digital paperwork and allows organizations to make huge deals with due diligence. It combines project management capabilities to ensure efficient workflow and reduces the clutter of heavy physical paperwork. 

Source: DealRoom

When you opt for a VDR from a reliable provider, they will install it on your server and create a centralized secured resource space for sharing data with third parties. Individuals like investors and clients with proper credentials can access the resources in a controlled environment. 

VDRs allow you to host confidential data with advanced security and also help you manage the viewer’s authorization to read, copy, and print them. During deals, organizations can securely exchange data and paperwork and complete the process. Besides, VDRs enable employees to perform their assigned tasks quickly through automated processes and advanced project management.

Benefits of Virtual Data Rooms

The benefits of VDRs include:

  • Safe and secured space: The major advantage of VDR is that it provides you with a secure space for sharing and storing your sensitive data. It is protected by encryption protocols to safeguard data.
  • Improved due diligence: VDR has been instrumental in enhancing the due diligence process by providing a centralized space for data. It enables efficient data sharing, review, and analysis by investors and clients.
  • Establish transparency: Since it provides a secure environment where organizations and clients can share data and track user activity, it establishes trust and transparency among each other.
  • Boost deal process: VDR has benefited many organizations by providing a centralized platform for organizations to effortlessly carry on with their deals, share documents, and accelerate sales. It streamlines all the processes, which helps users work on the deal quickly. 
  • Cost-effectiveness: Implementation of VDR in the servers helps you cut down the need for physical paperwork and the cost associated with printing and dealing with them. When you start using VDR, it helps reduce the cost of sharing documents and traveling to present documents to corporate clients.

Use Cases of Virtual Data Room

Virtual data rooms have revolutionized the way mergers and acquisitions, capital raising, financial transactions, and other business deals are done. Here are some uses cases of VDR:

  • Manufacturing: Organizations associated with manufacturing widely use VDR for making billion-dollar dealings with clients and vendors. It provides them with a platform for collaboration and distribution of sensitive data.
  • Information Technology: The IT industry has one of the largest users of VDRs to share documents among teams across different parts of the world and also with clients, third parties, and other companies.
  • Banks: VDR helps banks in managing mergers, loans, exchange of sensitive documents, and other tasks in a secured and properly regulated environment. It provides them with a secured virtual vault where they could store the sensitive data of customers.
  • Consulting service: With VDR in place, many consulting services have benefited from it because it facilitates project collaboration, client management, and knowledge sharing.
  • Legal firms: Legal firms are known for dealing with mountains of paperwork, but VDR can help them get out of the clutter and streamline the workflow. They can now easily share paperwork and other documents with clients and firms.

Now, let’s take a look at all the top virtual data room providers that you can consider.


Securely store all your organization’s confidential documents in one place, manage data controls, quickly share them with your clients on request, and collaborate on them using DealRoom. It is a leading VDR platform that a lot of global organizations prefer. 


Through DealRoom’s centralized data storage option, you can view all the information through an inbuilt document and Excel viewer without needing to switch between platforms. It also lets you leverage insightful data analytics where you can review and analyze document activities and request accesses and engagements by clients. 

With DealRoom, you won’t have to worry much about data theft or unauthorized access because the software has customizable permission and multi-factor authentication. In addition, you can complete your due diligence requests with the help of easy drag-and-drop uploads. 

DealRoom’s starting plan costs $1295/month. 


Caplinked is a renowned virtual data room provider that can help you to take your document management to the next level with security. It will give you a broad workspace acting as a vault to store documents of your business, clients, and investors. 

Caplinked employs military-grade 256-bit encryption, and it is compliant with HIPAA and SOC 2. Whether your business belongs to the investment, IT, or manufacturing sector, Caplinked helps you create custom groups and configure the permission according to the requirements.

Furthermore, Caplinked is more than just file sharing; it creates backup storage and allows you to make special storage access instructions. You can utilize its digital rights management to protect your sensitive files with proper encryption so viewers with secured credentials can only access them. 

This VDR provider also leverages the power of AI to help you auto-redact sensitive information and organize data with a single search text. Using its central dashboard, you can easily track all the actions and modifications made in the system.  

Caplinked offers the VDR software in two plans, starting from Team at $149 per month. 


Box can simplify deal management and data sharing through its VDR tool. It helps you streamline and secure M&A due diligence, contract negotiation, bidding process, and other deal management with ease. 

From assisting clients in responding instantly and making negotiations to signing deals, Box allows you to choose from 1400+ integrations to speed up deal cycles. It also provides mobile access and in-browser preview in 125+ file formats that work effortlessly without compromising data integrity or security.


Box offers various security protocols, classification, and robust user authorization processes to ensure bidder security and privacy. In addition, you will get secure file access and visibility through its hiding collaboration and watermarking functionality. It also utilizes disposition and retention features to adhere to compliances like SOX and FINRA. 

Moreover, Box is a feature that utilizes machine learning to help you extract required, relevant information from the stored documents. To work on a new deal, you can collaborate with bidders in your VDR and share and manage your data. 


If you are looking for a reliable virtual data room provider to manage your deals with clients, then Digify can be a good option. 


This VDR solution provides you with the required insights to accelerate your deals and treats you with impressive document tracking and analytics on your investor’s interaction with the data. Digify offers an advanced branding option that allows you to use white-labeled URLs on the VDR platform.

Digify will help you make quick customization by using your logo, avatars, and brand colors, which comes useful in building trust with your data room guests. With ISO27001 certification, on-click NDAs, and complete encryption, this VDR provider also ensures top-level security. 

The Standard plans of this service start at $120 per month when billed annually. 


Onehub‘s virtual data rooms provide you with a seamless platform to store and manage data and complete your deals successfully. 

This VDR lets you collaborate securely and effortlessly with your clients, customers, and colleagues by sharing documents, data, and other vital information without worries. You can save a lot of your time by using a drag-and-drop uploading facility and also get high-quality previews of 30+ file types. 


Thanks to the advanced activity tracking, you will come to know about every activity inside your data room. Onehub makes it quite easier to organize all the files and folders while controlling who can access which files. 

Onehub strives to take complete care of your data and data room with 256-bit bank-level encryption, reducing the chances of a hacker getting their hands on your data. It also lets you customize the workspace with your organization’s logo and color,  giving it a personal touch. 


Share and collaborate on business documents and other sensitive data with security using VDRs by iDeals. It provides an interactive platform that you can access from any device without requiring any plug-ins. 

While uploading documents in iDeals, you can simply drag and drop the file, and it will number the files automatically for your convenience. You can also set watermarks and settings before the start of a deal, and they will automatically be applied to all the documents that you will add. 


iDeals supports 25+ formats, and you have the option to limit the view of certain text or images on the document by redacting the sensitive part. Document rights management is highly effective, where you can configure the files’ permissions according to the requirements. 

Thanks to its 99.95% data room uptime, you can always access all the shared data. You will also be able to obtain graphics reports showing bidders’ activities, which can help lower your decision-making time.

iDeals offers top-notch security with 256-bit encryption along with 2048-bit keys. Its data center infrastructure is fully audited and SOC 2 compliant, while its data center operations are audited by EY and are ISO 27001 certified.

Since the multiple data centers continuously mirror each other, the chances of losing your data get minimal, even if there are many server crashes. iDeals provides multiple advanced features like Fence view, watermark, IP address limitation, secure spreadsheet viewer, and more.


Streamline your document sharing and business dealing process with DocSend by Dropbox. It offers a virtual data room featuring smart permission management of email addresses and domains and sensitive data accessibility. 


DocSend even allows you to implement protection at a granular level by providing permission management for individual documents. This VDR platform has made it easier for users to view your files from any device with appropriate permissions without downloading the software. 

You can introduce a personalized viewing experience of the VDR through a customized logo and banner image. This creates a good impression before the visitors. It allows you to share multiple documents through a single link. 


Backed by SOC 2 Type 2 certification and simple document management, FirmRoom provides you with an easy-to-use VDR for all your document collaboration and sharing processes. 

The VDR tool lets you efficiently manage your files using the drag & drop upload functionality, notify the team of new documents, and leverage automatic indexing and advanced search. It features a secure spreadsheet viewer along with a document and Excel viewer that lets you view data in multiple file formats. 


FirmRoom comes with an in-built smart redaction that quickly identifies and removes any part of patterned information to safeguard personal and critical business documents. 

Moreover, FirmRoom employs impressive protection for all the stored documents through 4-level document access, a watermark feature, and NDA. Through its smart analytics, you will have a broad view of what is happening with the documents in VDR, including document heatmap and group and user activity. 


Achieve critical business outcomes with Ansarada, which provides smart virtual data rooms to support your business growth. Apart from being a secure file-sharing platform, it integrates with other platforms to help you view documents without switching apps manually.


The drag-and-drop facility makes the tool easier for you to store files. It also offers a Deal Workflow tool that allows your team to work collaboratively and strategically without any limitation on the total number of users. 

Ansarada is a modern virtual data room that not only helps you to get ready for M&A deals and IPO but also implements user management and operation discipline. It leverages the power of AI for tracking user activities. 

Get this tool by paying $1039/month for unlimited users. 


Imprima is a VDR platform that offers faster data access through blob storage technology. It is powered by AI, which allows you to work on any type of document in any language and automatically redact vital parts in documents for GDPR compliance. 


In addition, Imprima accurately reviews legal documentation and automatically structures your VDR. It offers a real-time dashboard and heatmaps to track the bidder’s interests and lets you create custom templates in a graphical format. 

Through Imprima’s AI and automation tool, you can review legal documentation and automatically structure your VDRs quickly. It has enhanced user management, streamlining your dealing process and letting you manage Q&A in your VDR. 

Imprima is compliant with ISO 27001:2013 and GDPR to protect data and maintain privacy. Its EU-based data servers practice industry-leading security practices. 


Virtual Data Rooms (VDRs) have made it easier for businesses to securely store and manage data while accelerating M&A and other transaction deals. 

All the VDR providers I have mentioned above come with basic and advanced features and offer robust security and compliance policies to safeguard you from security and privacy risks. Thus, choose any of them based on your business needs and affordability.

Next up, get to know about data center types explained in 5 minutes or less.

  • Durga Prasad Acharya
    Durga Prasad Acharya is a Freelance Technical Writer who loves writing on emerging technologies, such as AI & ML, Cybersecurity, Web Hosting, SaaS, Cloud Computing, and more. Besides writing, he’s a web designer and is passionate about… read more
  • Joy R Bhamre

    Joy R Bhamre is a multifaceted professional, holding the title of Editor at Geekflare. She is a Google-certified Digital Marketing Specialist, a seasoned Editor and writer, and a Cambridge-certified English Language Trainer, boasting… read more

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