Online Data Room Providers: Reviews and Analysis

Primarily used in connection with due diligence, the term “data room” is a collection of data and documents offered for sale by a company to an acquiring company in a specific location.

What is the Point Of VDR?

Due to the increasing complexity of business transactions and the need to provide advisors and stakeholders access to a data room outside the country and country, so-called VDRs (also called online data rooms, digital data rooms or electronic data rooms) are becoming more and more popular. is an internet platform or cloud service that provides secure access to and processing of confidential documents with certain access rights.

A secure VDR today is very useful for many business processes: the exchange of information and data between supervisory boards and/or boards of directors, company-wide and inter-corporate strategic projects, mergers and acquisitions, joint ventures, financial transactions, legal process, research and development, major project management, outsourcing and medical testing, just to name a few.

Today, however, data rooms are used not only in highly sensitive transactions such as mergers and acquisitions, but also in day-to-day business. In today’s world of work, more and more people work together in the most diverse locations and in varying project teams. The secure and fast exchange of documents and data, as well as efficient communication, become a decisive competitive advantage. The virtual data room providers optimize data exchange and collaboration between entities. Virtual data rooms are today used by agencies, small and medium-sized companies and large international companies. Companies such as netfiles offer separate products for highly secured data rooms, data sharing or collaboration, etc. These products are often referred to as command rooms or project rooms.


Due to the privacy of the data in the data room, special attention should be paid to security and data protection when choosing a provider. Data protection experts recommend European providers such as netfiles with servers in the EU to avoid both economic and legal risks related to legally required data protection.

An internet-based data room generally offers the following basic. How secure is the data room?

The main function of the electronic data room is the protection of confidential documents. Therefore, when choosing a particular provider, always pay attention to the individual security features of the data room. It is important to clarify whether the data stored on the server and encrypted in transit, how the rights management for individual users and the effective protection of the operator through the use of complex mechanisms to protect against unauthorized intervention of the operator by technical and organizational measures, whether two-factor authentication is guaranteed when logging into the system and whether there is an official certification, for example according to the ISO 27001 standard.

What Functions Can a Data Room Offer?

To make the virtual data room fit your application, it is important to be aware of the individual characteristics of the data room. Because only with the features you need for your requirements will you succeed in the end. In any case, uploading documents should be easy and secure, regardless of the file type. Document management must also work seamlessly across department and company boundaries. Security categorization is just as important as automatic indexing. For deal projects, having a Q&A module is also critical, allowing you to exchange questions with a buyer or seller in a secure environment.

Is the Data Room Immediately Ready for Use?

When you need a data room, you often have to act quickly, especially when it comes to due diligence or M&A projects. Immediate readiness is thus an important criterion when choosing a virtual data room, so that you do not waste time on your transaction or other urgent projects.