As a business operating in the UK, you need a virtual data room software that will be more than secure data storage. You expect your data room to be a well-rounded solution that aligns with your specific needs, from compliance to collaboration.
Virtual data rooms have become indispensable tools for professionals across multiple industries in the UK. They are used during UK mergers and acquisitions, fundraising, legal activities, and just in general for managing sensitive corporate documents.
Here, we explore, compare, and select the best virtual data rooms in UK. We’ll cover everything from what a VDR is and how it works to detailed comparisons of top UK providers, pricing models, and user reviews. By the end, you’ll know how to make an informed decision for your business.
What is a virtual data room and how does it work?
The data room represents an online repository where sensitive information is kept and through which the company data can be managed and distributed. It is, therefore, used not only for storing vital data but also for sharing them with all other concerned individuals.
The documents kept in it can be organized, monitored, and distributed with the help of special tools. In this way, VDR services are a perfect way to support complex business projects and facilitate business processes by sharing confidential files in a safe and reliable way.
Let’s say, you are selling a company. You can use virtual data room services to upload confidential financial records, IT data, and other important information to a data room and grant access only to potential buyers and their legal advisors. This will help you both structure your corporate documentation to speed up the due diligence process as well as make sure that your sensitive information remains secure.
Why do businesses choose virtual data rooms?
Virtual data rooms provide a highly controlled digital environment where all the sensitive data can be accessed, shared, and viewed by only authorized users. To protect confidential data, VDR providers equip their virtual data room software with end-to-end encryption, two-factor authentication, and dynamic watermarks.
More and more businesses choose to completely transition to paperless data management so the demand for virtual data room services is growing at a rapid pace. The critical information about a company stored in the VDR is commonly considered to be of great value to the business owner. Together with the conventional way of keeping records about their financial and legal operations, many companies also have a lot of other valuable documents that need to remain confidential.
Another reason to start using the services of the leading VDR vendors is to keep the data related to intellectual property, trade details, or copyrighted papers that should be kept in a secure place for later use. Due to the ever-growing importance of such data, the VDR virtual data room was developed, and over some time, it has turned into the kind of technology that it represents nowadays.
What are virtual data rooms used for?
In recent years, traditional data rooms that offered physical spaces with in-person access have lost their role in business transactions. Online data rooms have entered the scene and are actively conquering the business world. The main use cases of virtual data rooms are:
Mergers & acquisitions (M&A)
As mentioned above, virtual data room software is an essential part of mergers and acquisitions deals. Due diligence data rooms are considered to be the backbones of mergers and acquisition deals across industries. Virtual data room providers offer a centralized and secure space where the parties can share and access sensitive documents, for example, financial statements, contracts, intellectual property records, and employee information.
Let’s take the tech sector as an example. The industry is extremely active, as new businesses pop up every single day and the technologies evolve fast like never before. Mergers and acquisitions are a usual practice there. Bigger companies acquire new and smaller ones to penetrate new markets or gain new expertise.
The same goes for the healthcare and finance industries. Shifts in regulations and market conditions often lead to mergers and acquisitions. Data rooms help these organizations go through any business transactions seamlessly.
Legal document management
For law firms and legal advisors, VDRs also offer a place where they can securely store and share case files, contracts, and compliance documents. This secure document-sharing environment is great for passing out evidence, witness statements, audit processes, and legal briefs to all parties involved in a corporate lawsuit. With remote access and real-time collaboration tools, it is much easier for legal teams, clients, and external parties to work together.
Fundraising and investor relations
Startups mainly need data room services during their fundraising journeys. Using VDRs, businesses can share financial data, pitch decks, business plans, and performance reports with potential investors securely.
Sharing documents via data room for IPO is also a much better option than in Google Drive as it showcases that your company takes document security seriously. This will give you some extra points as investors value security.
Startups often use virtual data room during their Series A funding round. They share financial data, pitch decks, and business plans with investors for a secure and efficient collaboration. Here is what one of the founders highlights:
Secure corporate document storage
VDRs are also perfect for corporate usage as they provide a centralized, secure repository where corporations can store their sensitive documents, such as board meeting minutes, HR records, and strategic plans. And with round-the-clock access from anywhere, it is much easier to manage this data for international teams.
Key industries that rely on VDRs
Businesses want to grow and expand. They need secure and efficient platforms for due diligence, document exchange, and collaboration. Above, we mentioned a few reasons why VDR usage is growing. Some of the other reasons are globalization, business mergers, and new technology.According to the virtual data room market report from Imarc, many industries benefit from using VDRs. The key users are M&A, real estate and construction, banking, IT, healthcare, legal, as well as retail. Let’s explore them in more detail.
Real estate and construction
The real estate sector handles vast amounts of confidential documents, ranging from property deeds to rental contracts. VDRs make intricate transactions easier and enhance efficiency.
VDRs systematically arrange property documents like title deeds, zoning permits, and inspection reports for convenient retrieval. Real estate agents, purchasers, and legal consultants can safely exchange and examine documents without the threat of data breaches.
Virtual data rooms also accelerate property sales, portfolio oversight, and financing by providing rapid access to essential information. Additionally, VDRs help real estate companies adhere to regulations such as GDPR as they guarantee safe data management and storage.
Legal sector
As law firms and legal advisors handle highly confidential information, they need data rooms for secure document sharing. With VDRs, these companies can store and organize case files, contracts, and evidence securely. For example, the granular user permissions feature allows them to provide access to sensitive data for the legal team. Thanks to data encryption, 2FA, and access control features, lawyers can share data with clients, opposing counsel, and external experts without worrying the information can go public or be stolen.
On top of that, VDRs help legal firms comply with data protection laws and provide secure storage and access controls. During litigation, for example, VDRs make it easier to share and review large volumes of documents with courts and opposing parties.
Banking, financial services, and insurance (BFSI)
The BSFI sector is all about high-stakes business transactions that require a secure environment. Finance organizations prefer VDR capabilities such as strong encryption, compliance certifications, and audit trails to protect private information and maintain regulatory compliance.
As financial transactions shift to digital platforms, the need for VDR solutions suited to the specific demands of the finance industry grows. The dominance of the finance sector in VDR adoption will continue because the industry keeps facing increasing regulatory pressure and digital transformation. This market growth is mainly driven by a continued focus on security and compliance in financial transactions.
Healthcare and life sciences
Healthcare and life sciences are among the top industries that drive the growth of the VDRs market. Healthcare organizations need data rooms to securely store and share sensitive patient records, medical imaging files, and research data. On top of that, the growing digitization of healthcare data and stringent regulations like HIPAA and GDPR drive the demand for VDRs in this sector.
HIPAA journal indicates that in recent years, the number of data breaches has increased. In 2021, for example, 45.9 million patient records suffered from data breaches. In 2022, the number increased to 51.9 million stolen records. But the next year beats the record with 168 million records exposed, stolen, or disclosed.
To prevent data breaches, healthcare organizations have to take security even more seriously than ever. With data rooms, it becomes possible. Virtual data room providers offer robust platforms for secure file sharing, collaboration, and compliance with HIPAA, GDPR, and other important regulations.
Technology and IT
The IT sector utilizes data room software for safe cooperation and data management during complex business transactions and projects. As investments in IT infrastructure are rising every single year, there is a growing need for secure, cloud-based solutions with robust document management features.
One of the most growing IT branches is telecommunication. These companies need a secure space to handle contracts, regulatory documents, and other confidential information. Data rooms provide this space for them, along with the necessary security, flexibility, and scalability to manage their documents securely while adhering to regional regulations. As the IT sector continues to evolve and transform, the adoption of VDRs is expected to rise.
E-commerce and retail
Data rooms are increasingly used in the e-commerce and retail sectors. The growth in VDR usage happens because businesses are looking for new, more efficient ways to manage large volumes of secure documents. Specifically, retail companies rely on online data rooms for sharing confidential supply chain and business data.
The industry report highlights that the number of digital buyers is constantly growing, with the Latin American market only boasting over 300 million digital buyers in 2024. Managing sensitive customer information and ensuring safe transactions for this number of people can be challenging without a secure online repository.
Virtual data room vs. cloud storage – what’s the difference?
When going through their first-ever fundraising or merger, companies may choose a cloud storage, like Google Drive, to keep all their sensitive documents. That might seem like a cost-effective and relatively comfortable choice until you realize that you do not have control over who has access to your confidential data and how your sensitive information is used. At this point, virtual data room solutions step in with more secure and reliable document management solutions.
The thing is, virtual data rooms are designed for secure, high-stakes business transactions (e.g., M&A, due diligence, fundraising) while cloud storage acts as a file storage and sharing for everyday use. It has only basic security features like encryption and password protection but lacks advanced safeguards.
VDRs are equipped with advanced security features like encryption, two-factor authentication, dynamic watermarks, audit trails, and remote shredding, just to name a few. These are top-tier features that safeguard your sensitive documents.
Overall, businesses prefer data rooms over cloud storage because they need more security, efficiency, and compliance features tailored to complex transactions. This is exactly what a VDR offers.
What should a modern data room look like?
It has become a norm to use data room solutions for financial operations, and this technology has replaced physical data storage. Traditional data rooms had their restrictions and disadvantages being time-consuming and highly inconvenient for those who used them. However, the advancement of technologies has resulted in the inception of digital data rooms, while physical warehouses have become outdated.
Many companies now are using online data rooms as a safe and speedy way of exchanging and managing documents. That’s because modern-day data room technologies have all the essential features that are necessary for making business processes easier. The major features of a secure virtual data room include the following:
Messaging
E-mails just like other messaging tools have become a vital part of our daily lives. This is still a convenient way of business communication. Virtual data rooms also provide this option. For all those who have to work on different projects simultaneously, certain VDR service providers have made sure that their clients can upload documents from their email or other integrated platforms.
Access permissions
When there are a lot of participants in some business project, it is important to provide a specific type of data to specific users who need access to it. This should be done for both security and convenience. In this respect, a virtual data room comparison we share later in this guide demonstrates that most providers offer the ability to set VDR permissions and change them whenever necessary.
Security features
Increased security is the greatest selling point of the data room services that all clients expect to get. As a rule, the security of a VDR is maintained with the help of special safety measures like watermarks. They allow VDR owners to avoid the major threats and hazards that could violate their data’s security. Watermarks are the most effective tool used to prevent data leaks and protect information from malware.
Q&A section
This is a useful feature provided by most VDR services. It gives users a chance to find out all they need to know about a particular deal. It ensures that everyone working on the project has the relevant knowledge about the project’s most vital aspects. This feature allows users to ensure that any of their concerns will be addressed by other participants.
Full control over company data
This can be achieved using different services offered by data room vendors. Thus, permission settings allow gaining full control over the accessibility of some particular documents. Before some document is shared, the data room administrator can establish an expiration date and time or set some other parameters required for the management of users’ rights. The administrator can also determine who can print or download documents and who is deprived of such an opportunity.
No matter what vendor you choose, data room services represent a useful tool for data management. They not only make the business process less stressful and tiresome but also save much of your and your client’s or business partner’s time.
Full list of the leading virtual data room providers in the UK (2025)
This is the list of the top virtual data room providers in the UK for 2025. We have also added their primary use cases and pros and cons to help you choose the best solution for your business needs.
| Data room provider | Pros | Cons | Best for |
| Ideals | High security, user-friendly, excellent support, AI analytics | Higher cost for small projects | M&A, due diligence, fundraising |
| DataSite | Robust security, global reach, strong support | Steeper learning curve, higher upfront costs | Large enterprises, complex transactions |
| Sterling | Full security, many features, customizable | May be expensive for small businesses | M&A, legal document management |
| Intralinks | Useful for large files, strong support, global reach | Complex interface, higher pricing | Cross-border deals, large-scale projects |
| Drooms | AI-powered insights, strong security, compliance | Limited advanced collaboration tools | M&A, fundraising, due diligence |
| DocumentVault | Easy to use, quick setup, affordable | Limited advanced features | Small businesses, general document management |
| Imprima | User-friendly, intuitive interface, secure | Limited customization options | Legal, real estate transactions |
| Dealroom | Simplified process, focused analytics, AI-driven insights | May lack advanced security features | Startups, fundraising, deal management |
| Sharefile | Dynamic watermarking, advanced controls, affordable | Limited features for complex transactions | Legal, accounting, small businesses |
| Box | Great efficiency, strong support, integrates with third-party tools | Lacks advanced VDR-specific features | General document management, collaboration |
| Ansarada | Good customer service, AI-powered deal readiness, user-friendly | Pricing not transparent, may be costly | M&A, fundraising, due diligence |
| HighQ | Quick setup, fast access, secure | Limited advanced features | Legal, corporate document management |
| Ethosdata | Easy-to-use, 24/7 support, affordable | Limited customization and advanced tools | Small to mid-sized businesses |
| ShareVault | Document sharing analytics, marking of files and tags | May lack advanced security features | Legal, real estate, due diligence |
| Onehub | Secure backup storage, increased security, accessible | Limited advanced collaboration tools | General document management, small businesses |
| Datasend | Direct access to folders, private Q&A system, easy to use | Limited advanced features | Small businesses, basic document sharing |
Virtual data room reviews – what users say
One of the best ways to learn more about data room providers is to check out real user reviews on trusted resources. You can visit G2, software reviews, and other rating websites.
Pay attention to both positive and negative reviews as they get you an unbiased overview. Ideally, you want to look for feedback from users that operate in your industry. Check the above mentioned resources for a comprehensive virtual data room comparison based on user reviews.
These ratings are primarily based on user feedback, however, you still need to dedicate some time and explore each virtual deal room for a more comprehensive overview. To speed up the due diligence process a little bit, identify the key aspects that matter to you most.
For example, if you are looking for secure document sharing, Ideals virtual data room is a top choice. It has the highest scores along with DataSite, Sterling, and Intralinks virtual data rooms. If ease of use is your other main priority, pay attention to Ideals, Ansarada, and DocumentVault, among others.
Find the best virtual data room for your business
Numerous businesses across the globe utilize VDRs. According to the Fortune Business Insights report, the worldwide data room market is expected to reach $13.22 billion by 2032 with a staggering 21.2% CAGR. This growth seems natural as the right VDR offers peace of mind when it comes to security, efficiency and compliance.
The main purpose of this guide is to help you find the best VDR software for your needs, whether for an M&A deal, raising funds, or legal matters. Use the information we provide to compare virtual data rooms, their pricing models, features, and user reviews to make an informed decision.
Explore the benefits of Ideals data room
How to choose the best virtual data room provider in the UK
In this guide, we have discussed what are online data rooms, their main functions, and use cases. We also took a look into the pricing models and compared the best data room software for the UK businesses. Here’s a step-by-step checklist to help you choose the best VDR provider in the UK:
Step 1: Define your business needs
- What do you need the virtual data room for?
- Estimate the number of users and how much storage you need
- Identify must-have features (e.g., multi-factor authentication, bulk download, HIPAA compliance, etc)
- Determine your budget
Step 2: Research and shortlist providers
- Compare top VDR providers in the UK
- Read reviews and case studies to better evaluate the usability and security of virtual deal rooms
- Check for industry-specific expertise
Step 3: Evaluate security and compliance
- Check is the VDR provider offers end-to-end encryption and two-factor authentication
- Verify compliance with regulations
- Explore if they offer advanced security features like watermarks, remote shredding, and audit trails
Step 4: Use a free trial to test usability and features
- Evaluate the user interface and ease of use
- Test key features like Q&A modules, task assignments, and real-time notifications
- Ask your team to test the data room for a more objective review
Step 5: Compare pricing models
- Request detailed quotes from shortlisted providers
- Compare pricing models: per-page, per-user, flat-rate, or custom plans
- Make sure the providers don’t have any hidden fees (e.g., setup costs, additional user licenses)
Step 6: Read user reviews and cases
- Look for reviews on platforms like G2 or Capterra
- Read case studies to see how the VDR has been used in similar industries or transactions
- Check for ratings and insights on performance and customer support
Step 7: Negotiate terms and sign up
- Discuss pricing, contract length, and additional features with the electronic data room provider
- Review the contract to ensure it includes all agreed-upon terms
- Sign up and onboard your team, providing training if necessary
Step 8: Monitor and optimize
- Use audit trails and reporting tools to track document activity
- Regularly update and organize files to keep the VDR clutter-free
- Scale your plan or switch providers as your business grows
These are the essential steps to help you choose and sign up to the best virtual data room that will only benefit your business transactions. You can adjust the steps any way you want to make the most out of your due diligence process.
How to select the best VDR with transparent pricing?
VDR pricing is one of the key factors that influence your buying decision. Some VDR providers can charge additional fees for crossing storage limits, additional user access, or when you request extra security features. Usually, data room companies offer per-page pricing, per-user pricing, flat-rate pricing, and custom pricing models. Here is a brief breakdown of each pricing option:
| Pricing model | Best for | Pros | Cons |
| Per-page pricing | Small projects with limited documents | Cost-effective for small-scale use | Can become expensive for large projects |
| Per-user pricing | Teams with a fixed number of users | Scalable for growing teams | Costs increase with more users |
| Flat-rate pricing | Large-scale, long-term projects | Predictable costs, unlimited storage | Higher upfront cost |
| Custom plans | Enterprise-level needs with unique requirements | Tailored to specific needs | May require negotiation |
Always ask for detailed virtual data room pricing and make sure there are no hidden fees. Many data room providers also offer free trials or demos. Do not hesitate to take these as this is a great opportunity to test the platform before committing. Use the demo or trial to evaluate the VDR’s data management features, usability, and performance.
Pricing models of leading VDR providers
| Provider | Pricing model | Key features | Pros | Cons |
| Ideals | Custom pricing | Advanced security, AI analytics, GDPR compliance | Transparent pricing, user-friendly, great support | Higher cost for small projects |
| Intralinks | Custom pricing | Robust security, integration tools, global reach | Scalable, high-security, ideal for global deals | Steeper learning curve, higher upfront costs |
| Firmex | Flat-rate, per-user | Customizable, easy to use, affordable | Predictable costs, unlimited storage | Limited advanced features |
| Merrill Datasite | Custom pricing | AI-powered insights, mobile access, high security | Scalable, enterprise-grade features | Expensive for small businesses |
| Box | Per-user (tiered plans) | Integration with third-party tools, user-friendly interface | Affordable, flexible, easy to use | Lacks advanced VDR-specific features |
| Citrix ShareFile | Per-user (tiered plans) | Secure file sharing, collaboration tools, compliance | Affordable, integrates with Microsoft Office | Limited features for complex transactions |
| Ansarada | Custom pricing | AI-powered deal readiness, compliance, security | AI-driven insights, strong for M&A | Pricing not transparent, may be costly |
How to use a virtual data room effectively?
Let’s take a tech startup that is gearing up for a big Series B funding round as an example. The company representatives have prepared their financial records, business plans, and intellectual property documents to share with potential investors. They cannot afford this stuff to fall into the wrong hands. So, they decide to choose data room software to store this data securely. Where should they start from? Let’s unwrap this process step by step.
Step 1. Choose a data room provider
There are many VDR providers available for UK businesses. How do they differ and what do you need to know before choosing one?
Data room providers in the UK all offer a secure online repository for document management. However, the features they have, as well as usability characteristics and compliance may differ. That is why you need to identify your goals and requirements first. Ask yourself:
- What type of documents will you store and share?
- Who will need access (e.g., investors, legal advisors, buyers)?
- What security and compliance features are essential?
- What is your budget?
Step 2. Set up an account
Once you have made up your mind, create a new account with the chosen provider. Opt for a free trial, if possible. Then, if you are happy with the data room, select a plan that fits your budget. Configure your data room settings, name the project, and set up basic security measures. Many data rooms allow you to customize the environment with your corporate branding and configure general settings, for example, you can create a non-disclosure agreement (NDA) for users to sign before letting them access sensitive documents.
Step 3: Structure folders and files
Prepare and organize the files you plan to upload:
- Create a logical folder structure (e.g., by document type, project phase, or department).
- Label files clearly for easy navigation.
- Remove any unnecessary or outdated documents to keep the VDR clutter-free.
Step 4: Upload documents
Upload your documents to the data room. You can do so by dragging and dropping files or creating folders. Use bulk upload features to save time. Organize your files securely and apply document-level security settings as needed.
Step 5: Set permissions
After the documents are uploaded, it is time to define access levels for different users. You should assign roles (e.g., admin, viewer, editor) based on user responsibilities. Then, restrict access to sensitive folders or documents as needed. You can also enable features like “view-only” mode or download restrictions for added document security.
Step 6: Enable watermarking and other security features
Customize security features to protect your data:
- Enable dynamic watermarks to deter unauthorized sharing.
- Set expiration dates for document access.
- Use remote shredding to revoke access to downloaded files if needed.
Step 7: Invite users
Share your data room with clients, partners, and/or team members. Simply enter the email addresses of the recipients, assign roles and permissions, and send the invitations. You also want to provide general instructions and guidelines for using the platform so that users can easily navigate the platform. Many best data rooms offer training and tutorials to ensure users are comfortable with the VDR’s features.
Step 8: Review and audit regularly
Setting up the data room is only half of the way. You also need to maintain it. This doesn’t take much time and effort but it will benefit you in the long term. Regularly monitor user activity, logins, downloads, and uploads. When necessary, update permissions and settings to keep your data room secure.
Do not forget to adjust user permissions as roles change. After closing a deal, archive all due diligence documents in a secure folder for compliance purposes. Keep in touch with your provider to be the first who learn about their updates, new features, or recent security innovations.
Best practices for managing confidential documents
Here, we have gathered some of the best practices for managing confidential documents in a data room. These are simple, yet often underestimated measures that can help you create not only a secure but also structured environment that is easy to work in.
| Best practice | Key action | Example |
| Organize systematically | Use logical folders and consistent naming | Folders: Financials, Legal. File: “NDA_Vendor_A.docx” |
| Control access | Assign roles, restrict sensitive data, use view-only mode | Grant investors access to financials only |
| Enhance security | Enable encryption, watermarks, expiration dates, remote shredding | Add “Confidential” watermarks to reports |
| Monitor activity | Track access, set alerts, generate reports | Track buyer access to financial records |
| Train users | Educate teams on security protocols | Train legal advisors on secure document handling |
| Update & backup | Keep files current, backup data, archive old files | Archive documents post-deal closure |
| Ensure compliance | Use certified providers | Use a GDPR-compliant VDR for EU stakeholders |
| Plan for contingencies | Prepare for breaches, test security, limit third-party risks | Conduct mock breach exercises |
Frequently Asked Questions
Why do companies need a virtual data room?
Data room is an online repository that allows companies to keep, manage, and distribute sensitive information. It is used for storing vital data and sharing them during business transactions.
What factors are the most important when choosing a data room?
The factors are up to you to decide. Usually, the VDR users compare virtual data rooms looking for advanced security functions, regulatory compliance, and round-the-clock customer support. Transparent pricing and usability are other important factors that affect the data room choice.
Is there a difference between a data room and cloud storage?
Yes, data rooms and cloud storage are completely different. Data rooms are specifically designed for business transactions. That is why they have top-tier security features like audit trails and granular permissions. Cloud storage is used for more general purposes. It provides basic file-sharing and storage functionalities without any advanced security and compliance features.
What are the must-have features in the data room?
Some of the best virtual data rooms have multi-factor authentication, data security, document management features, audit logs, dynamic watermarking, compliance certifications, user-friendly interfaces, and 24/7 customer support. However, the features may differ across providers.
How are virtual data rooms for M&A different from other data rooms?
It is a centralized and secure space where the parties can share, manage, and access financial documents, agreements, intellectual property and IT records, employee information, etc. Within data rooms, sellers and potential buyers collaborate on the deal.
How much does a VDR cost?
VDR pricing differs between various providers. The data cost depends on features and usage. For detailed pricing information, you should contact the VDR provider directly.
