The best virtual data room depends on the deal: a simple document-sharing room suits a seed round, a mid-market VDR suits most company sales, and an enterprise platform suits large M&A and lending. Eleven options follow in no particular order.
A virtual data room, or VDR, is a secure online space where you'll share confidential documents during a deal. Buyers, investors and lawyers get the access you choose, every view is logged, and nothing gets lost in an email thread.
The eleven tools below are listed alphabetically and in no particular order, from an open source data room to platforms used by investment banks. Every description comes from the vendor's own site, read this week. For a gentler introduction, my piece on why virtual data rooms are so useful covers the basics.
Virtual data rooms at a glance
In the free plan column, Yes means the tool's own site names a free plan, a free version, a free tool or an open source edition. Trial only means a time-limited trial. Not stated means the pages I read named neither, even where there's a button inviting you to try it.
| Tool | Type | Good for | Free plan |
|---|---|---|---|
| Ansarada | AI-powered virtual data room | Quick online data room quotes | Not stated |
| Datasite | Virtual data rooms for M&A | Large M&A deals | Not stated |
| DealRoom | M&A operating system | Buyer-led deal management | Not stated |
| Digify | Secure document sharing and data rooms | Tracking who reads each page | Trial only |
| DocSend | Document sharing and data rooms from Dropbox | Fundraising decks and investor rooms | Not stated |
| Firmex | Simplified data rooms | Mid-market sell-side deals | Not stated |
| Ideals | Virtual data room for dealmaking | Connecting AI assistants to the data room | Not stated |
| Papermark | Open source data room and document sharing | An open source alternative to DocSend | Yes |
| SecureDocs | Secure virtual data rooms | Straightforward rooms backed by Onit | Not stated |
| ShareVault | Data rooms for business deals | Controlled sharing in high-stakes deals | Trial only |
| SS&C Intralinks | Financial deal platform with VDRs | Lending, funds and M&A rooms | Not stated |
Eleven virtual data rooms to consider
Ansarada
Best for: Advisers and companies that want an AI-powered data room they can scope online before a deal or tender.
Datasite
Best for: Investment banks and corporates that want an M&A data room with AI connected to their deal content.
DealRoom
Best for: Corporate development teams that want a buyer-led M&A platform covering diligence and deal management.
Digify
Best for: Founders and small teams that want copy protection and page-by-page tracking on shared files, with a free trial.
DocSend
Best for: Startups raising investment that want NDA gating, watermarking and insight into how investors read their documents.
Firmex
Best for: Mid-market advisers that want a simple data room for sell-side M&A, licensing and joint ventures.
Ideals
Best for: Deal teams that want a secure data room they can connect to AI assistants such as Claude, Copilot and ChatGPT.
Papermark
Best for: Founders and finance teams who want an open source data room with document tracking for fundraising and deals.
SecureDocs
Best for: Small and mid-sized companies that want a straightforward data room backed by the Onit legal software portfolio.
ShareVault
Best for: Companies in high-stakes transactions that want tight control over sensitive information, with a free trial.
SS&C Intralinks
Best for: Banks and fund managers that want data rooms for M&A, syndicated lending, fundraising and fund reporting.
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Document sharing, mid-market VDR or deal platform?
Document-sharing tools with data room features suit fundraising. You share a deck and a folder of documents, see who opened what, and gate access behind an NDA. Mid-market VDRs add question and answer workflows, detailed permissions and audit trails for company sales. Enterprise deal platforms add features for large M&A, lending and fund reporting, along with support teams that work through the night before a deadline.
AI features are spreading fast, and they're not all switched off by default. Several rooms now summarise documents or connect to AI assistants, so check what happens to your files when those features are switched on.
Personal data in the room
The ICO says that if a merger or acquisition means transferring data to a different or additional controller, you must consider data sharing as part of your due diligence. That includes the purposes the data was originally obtained for and your lawful basis for sharing it.
Data rooms often fill up with staff files, customer lists and contracts full of personal details. Before the other side gets access, decide what they need to see, what can be anonymised and what should wait until later in the deal.
Questions to ask before you open a room
- Who needs access, and should each group see different folders?
- Can we watermark documents and stop downloads or printing?
- Does it log every view, page by page?
- Is there a question and answer workflow for buyers?
- What do the AI features do with our documents?
- Can we archive the whole room when the deal closes?
Mistakes that slow deals down
- A messy folder structure. Buyers waste time hunting for basics, and they'll ask for them again.
- Permissions set too wide. Sensitive files reach the wrong people.
- Documents uploaded late. Every gap triggers more questions, and that's time you don't get back.
- Personal data left in. Anonymise what the other side doesn't need.
Do you make virtual data room software? Tool makers can ask to be considered for a featured place on this list.
My plain advice on choosing a data room
Match the room to the deal, not the other way round. It's an easy thing to get backwards. A seed round doesn't need an enterprise platform, and a large company sale shouldn't run on a shared drive. Ask your adviser which rooms they're used to, because a room your lawyers know saves days.
Build the folder structure and upload documents before you invite anyone, and check permissions by viewing the room as a buyer would. My guide to how long the legal process takes when selling a business helps you plan the timing.
Frequently asked questions
What is a virtual data room?
It's a secure online space for sharing confidential documents during deals such as company sales, fundraising and audits, with access controls and activity logs.
Is a VDR better than a shared drive?
For deals, usually yes. Data rooms add detailed permissions, watermarking, activity tracking and question workflows that shared drives lack.
Is there a free virtual data room?
One tool in the table names an open source edition on its own site, and several offer free trials. Check the free plan column.
Do startups need a data room for fundraising?
Many use a simple document-sharing room with tracking and NDA gating rather than a full M&A platform.
What should go in a data room?
Typically company documents, financial statements, contracts, staff and customer information, intellectual property records and anything a buyer or investor asks for.
How long should a data room stay open?
Until the deal closes, then archive it. Many rooms let you export a full copy for your records.
