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Why Finding the Right Data Room Provider is Important for Your Business

Mar 25, 2022

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Starting and doing a business requires accurate strategic planning. Making it legal is of paramount importance. Any dynamic business needs to securely maintain its documentation and keep it ready for possible investments or other business transactions.

An optimal solution to problems like these is online data room software since it has all the necessary features to cope with them. Its usage may save you time and costs as well as help you to simplify your company governance.

Surely, to pick a reliable and proper vendor, you will have to learn how this software works and compare a number of these services. Or, you can join our quick guide that contains a virtual data room comparison and explanation of the most common features of the software.

What is a Virtual Data Room?


An online data room is a repository used for storing and maintaining business documentation. The software incorporates a complex of tools each having a certain function. On the whole, it serves for conducting various business operations that require sharing of documents.

You may come across other names of the software, for instance, it is also called a digital or virtual data room or simply VDR. It was initially invented for complex transactions like an M&A, so the soft’s main characteristics are as follows:

  • Advanced security;

  • Functionality;

  • Customizability;

  • Ease of Use.


Thanks to these principles, profit and non-profit organizations of different types and sizes have been using virtual datarooms. These are first of all legal firms, companies working in the technology and life science industries, banking investors, etc. However, the soft may be crucial for any organization.

Why May Your Company Need a Virtual Dataroom?


For a business, it is important to dynamically develop and always be in touch with its customers. The company should have a license and be quick to solve any legal problems. Moreover, it may plan to attract investors and find new partners. In this respect, a reliable virtual data room is the best way to conduct the following procedures:

  • Legal audits;

  • Licensing;

  • Fundraising;

  • Mergers and Acquisitions;

  • Strategic Partnerships, etc.


Operations like these involve negotiations and document exchange. You won’t find a more secure solution for this than virtual datarooms. You can also use it for online meetings of the board or stakeholders. Some products include corporate management software so it may serve as a solid corporate governance platform for your business.

Top Handy Features of Virtual Data Rooms


What makes an electronic data room so important for any business? One may think that there are many programs and applications to store papes. However, VDR software is unique since it comprises a huge number of tools that allow you to manage your documentation and deals in one place. Here are the most common of them.

Security Options


One of the key advantages of using digital datarooms is their unprecedented security. The top providers employ bank-level servers with uptime rates of 99.9% to store information. They comply with the FINRA and HIPAA guidelines. They also use modern methods of encryption and other important security techs.

Access Tools


While conducting a deal via an online data room, you will have to invite various guests to it. Not all of them should have access to your most sensitive documentation. But each of them can have a different level of permission and it’s up to you to manage it. You can also use two-factor authentication, customize your own non-disclosure agreements, and use other protective means to ensure that not a wrong person will access your VDR.

Document Management Tools


Surely, these instruments allow the comfortable management of your documentation. But they can also provide more security for your papers. Thus, a truly nice provider will offer at least the following options:

  • Drag&Drop upload;

  • Bulk uploads;

  • Auto-index numbering;

  • E-Signature;

  • Watermarking;

  • Redaction tools;

  • View-only options;

  • All formats supported, and many more.


With these tools in hand, you can prepare and conduct any business transaction. The main benefits will include rapidness and safety.

Audit Logs


Modern virtual datarooms allow monitoring of all the activities done in your VDR. This can be essential not only for ensuring your document security but also for analyzing the progress of your deals and introducing all the necessary changes.

Which Provider Does Your Company Need?


There exists a huge number of digital dataroom providers in the market and many of them offer indeed great equipment. But not every vendor will perfectly suit your company. To find the exact one, you need to understand your business needs and select the most suitable VDR according to them.

It is recommended to compare several services to find the best one. For instance, we can take three leading providers that offer most of the above-described features and compare their main characteristics. Even this brief information about each of them is enough to narrow your search.

























































Drooms IntraLinks iDeals
Headquarters Germany the USA the USA
Year of Foundation 2001 1996 2008
Best for Real Estate, Services, Legal Firms Medium to large businesses; Finance, enterprises Finance, Life Science, Legal Firms, Real Estate
Free Trial 30 days no 30 days
Demo yes no no
Price from $14.45 from $900 three pricing plans
Capterra Rating 4.7/5 4.1/5 4.8/5
Key benefits ease of use, AI, lots of features, the best provider in Europe a classical VDR, ideal for large-scale operations adaptable to all industries, great support

Thus, finding a proper virtual data room vendor for your company will help you to organize your documentation and make simple or complex deals in a secure and comfortable way. The software is also crucial when you need to optimize the management process in general.

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