One of the most popular reasons to use online data room software are M&A deals, due diligence processes, and other business transactions involving the transfer of confidential documentation. This is particularly true for tech startups, whose growth and development frequently depend on the acquisition as a goal exit strategy or a significant milestone.

During M&A due diligence, all parties have to review huge amounts of documents within very tight timeframes. It is essential to choose a virtual dataroom service with advanced security options and granular permissions. This will help you avoid losing important information. Look for features such as two-factor authentication, timed access expiration, multiple levels of user permissions, and IP-address based access restrictions. Verify if the company has certifications like ISO 27001, SOC 1, SOC 2, HIPAA and GDPR.

When choosing an online data space, you should take into account the size of your business and the amount of documentation that you will upload and manage using the system. Startups are more limited in their documentation, whereas companies require more advanced capabilities. Choose a provider that offers an interface that is customizable and mobile applications for iOS or Android devices. They should also have capacity for batch uploads, reporting on document activity, tagging, foldering, and the possibility of searching for files by type.

Certain VDR providers offer a free version for small and medium-sized businesses such as Brainloop Secure Dataroom. Some VDR providers like iDeals and Merrill Datasite offer unlimited storage to all customers.