Best Virtual Data Room Software 2025

What is Virtual Data Room Software?

A virtual data room (VDR) is an online repository of data that is used for the secure storing and sharing of critical information. It is a centralized space supporting simultaneous, multi-party requests for and access to documents and files. VDRs are used by bankers, lawyers, and investors to support due diligence during M & A, loan syndications, licensing, private equity, and venture capital deals. Trade secrets, intellectual property, medical data, or any other confidential information can be safely stored and shared with authorized clients, partners, and stakeholders.

VDR software monitors and tracks the individuals viewing the documents. Analyzing a buyer’s engagement can be leveraged to fine-tune deals or pursue business opportunities. This information also helps management understand what their internal staff is working on and the status of the project.

AI tools are increasingly deployed as part of a VDR to accelerate research, organize and analyze documents.

The data is usually stored on servers in the cloud. VDRs are not to be confused with File Sharing Services, which lack the robust security and analytics of VDRs.

Digital Rights Management capabilities are sometimes included in VDR offerings

Virtual Data Room Software Features

Virtual data room software should have most or all of these features:

• Document and File Management

• Request Management

• Security

• Alerts and Notifications – for document signing

• Analytics – tracks and analyzes document viewing

• Digital Rights Management - control of external VDR access requests, watermarks

• Customization – branding, white-label

• Collaboration

• Project Management Capabilities

• Global 24x7 Access – cloud-based

Virtual Data Room Software Comparison

When choosing virtual data room software consider the following:

• Security: Security is the most crucial feature in a VDR. Ensure that your choice is ISO compliant and has strong encryption methods.

• Use Case: Any business that creates and shares confidential, proprietary or client information will benefit from using VDRs. Financial institutions, legal firms, and companies that have significant intellectual property assets especially benefit from VDRs. VDR vendors offer both industry-specific and all-purpose functionality.

• Scale: The size of the project, its duration, the amount of information, and the number of users, will influence what VDR is appropriate for your requirements.

• Customization: Will the participants be internal or external clients, technical or non-technical users? Select a VDR that will accommodate those characteristics.

Start a VDR comparison here

Pricing Information

VDR software pricing depends on features offered, project size, project duration, the amount of storage needed, the number of users, and the level of customization required. There are four pricing models:

• Per Page: Charged by page storage. Suitable for small projects. Can range from $0.40 to $1.00 a page.

• Per User: Charged by the number of user licenses. Vendors offer a fixed number for a flat rate. User administration licenses range from $100 to $300. Other users/guest rates are lower.

• Storage: Charged by the amount of storage required. Overages can add up.

• Flat Rate: Monthly custom packages are available that support varying amounts of data, pages, and users. Flat rate pricing will eliminate overage surprises and allow for consistent budgeting. An average range would go from $500 to $1,000 a month.

Pricing can range from a few hundred dollars a month to over $100,000 for a large project.