Key Features to Look for in Virtual Data Room Software in 2025
Virtual data rooms are not just simple information sharing tools anymore. They are complete data management solutions with advanced reporting and communication features. The introduction of AI has revolutionized data room technology and has made them a mandatory business suite.
As demand for virtual data room solutions is increasing day by day, it is important to hire reliable and certified data room providers. An unsafe digital data room is not only a wastage of resources but could lead to potential lawsuits. Here is a detailed guide on key features to look for in dataroom software.
Transform your business with automated data capture and classification. docAlpha simplifies workflows, eliminates manual errors, and boosts efficiency. Book a demo today!
“The global business landscape is changing at an unprecedented rate, and simple data storage tools don’t cut it anymore. Virtual data rooms are the future of data management and dealmaking and they may replace other options too,” says Gilbert Waters — Co-founder, marketing specialist at data-rooms.org.
Indeed, there are various pros and cons of virtual data rooms (which will be discussed later in the article) but only using the right data room solutions will help you enjoy those pros. Here are the key VDR features to look for in 2025.
Recommended reading: What Is Data Processing?
Security is one of the most crucial aspects when choosing a VDR. If you compromise here, you may find yourself in legal battles. There are multiple advanced security features in modern-day data rooms but at least look for features like virus scanning, multi-factor authentication, and strong encryption to protect your data.
Check if the virtual data room providers follow third-party standards, such as SOC, to ensure they meet industry safety rules. Other important certifications include ISO/IEC 27001, FINRA, GDPR, FISMA, HIPAA, etc.
Automate Invoice Data Processing and Save Valuable Time
Streamline accounts payable with AI-driven data extraction. InvoiceAction automate invoice management and integrates seamlessly with your ERP.
Book a demo today!
Book a demo now
Modern-day deals are shifting to online tools and they require tools for team work. Therefore, your desired virtual data room should help people work together. Look for communication features like in-app messenger, audio/videocalling tools, discussion boards, etc.
When it comes to data control, look for features that control who can access documents based on their role. This helps you track who views, saves, downloads, or prints files. Also, check for redaction and watermarking features to protect private information while sharing files.
Never ever compromise on a VDR’s performance. Always check how well the VDR performs and ask the provider about uptime, delays, and any system interruptions. One way to assess VDR’s performance is to ask for a free trial. Good data room vendors always provide free trials. Compare this data with other virtual data room providers to understand which VDR is most reliable.
Recommended reading: Types of Data Entry
Data room pricing is arguably the most ignored and vulnerable segment. VDR providers charge in different ways, and not every model is suitable for everyone.
Some common pricing models are:
There is no “best” pricing model. The best choice depends on your company’s size, how often you use the data room. However, the first three pricing models are better suited for short-term or one-time use. Fixed monthly fee structures are recommended for long-term usage.
Contact Us for an in-depth
product tour!
As you will be handling large volumes of data, it is highly recommended that you look for important document management features. Document management refers to how you upload, organize, and work with your files. Some key document management features in VDRs include:
Recommended reading: Document Management: Systems, Examples, Tips
A good dataroom should be easy to use. It should be accessible on various devices like desktops/laptops, tablets, and phones. The idea is simple: you should be able to work from anywhere. Make sure the VDR is easy to navigate. If the user interface is confusing, it can slow down your work.
Therefore, request a demo to see how the software works and if it fits your needs. After the demo, consider how the VDR will support your current processes. Finally, make sure that the dataroom supports the languages your team speaks. Many data room vendors, such as iDeals, offer multilingual support.
Transform Sales Data Processing with Smart Order Management
Take the hassle out of sales order processing. With OrderAction, use automation to extract, validate, and process sales orders faster. Schedule your demo now!
Book a demo now
Virtual data rooms have their own perks and drawbacks.
On the brighter side, you can use them for complex dealmaking such as M&As, fundraising, IPOs, etc. You can access them from anywhere, anytime. Data rooms’ collaboration tools ensure you can communicate and share information data in one place.
On the other hand, a virtual data room can be a headache if your organization is old-fashioned or switching from manual to digital platforms. Security is also a concern but you can minimize this threat by choosing a secure data room vendor.
Recommended reading: Data Capture: What Is It?
Dataroom is indeed a remarkable dealmaking and data management solution only if you choose the right one. Look out for features like ease of use, security, compliance, accessibility, and collaboration tools. Last but not least, be considerate about the pricing structure.
What Are AI-Powered Data Management Solutions?
Data Capture: What Is It?
Types of Data Entry
What Is Data Processing?
Intelligent Automation in Data Entry: Humans vs Machine?
Data Collection: Best Practices and Technology Selection