Virtual data rooms are one of the most advantageous business solutions available in the market. What makes them different is their high suitability for all types and sizes of businesses. Corporations, enterprises, firms, small businesses, or startups; data room software is for everyone.
However, it doesn’t mean that every virtual data room in the market is worth buying, especially if you are starting a new business and finances are not your forte. For starters, a large number of data room providers are not even certified, and thus they are out of the question.
Second, the number of features and level of tech advancement also varies from vendor to vendor. It is obvious that a startup business and an enterprise won’t have the same requirements for a virtual data room. So, if you have launched a startup and need some guidance on how to choose the best online data room software, then this guide can answer your questions.
Things to consider when choosing a virtual data room for startup
1. What do you need an electronic data room for?
As mentioned earlier, a new business and an enterprise may need data rooms for different purposes. Startups usually don’t need mega solutions as their area of operation and number of employees are limited. Therefore, first of all, you need to assess what you want to achieve from using caplinked data room services?
Do you just need a secure data repository, or are you looking for a highly-equipped virtual workspace for your team? How much storage space will be enough for you? Do you want all your employees in your data room?
2. Which features do you want in your data room?
When you know what you are looking for in a data room, you will be able to identify the features you want in your VDR. If you intend to use the data room for remote collaboration, you need basic to advanced collaboration tools. You may also need project management tools for remote working teams. In a nutshell, the type of features you want will depend on your business needs.
However, it is highly recommended to look out for the following features in any data room software you choose:
- Document access control, which allows you to manage document access levels of different users.
- Files format support; make sure the data room supports all commonly used file formats.
- Document security features including digital watermarking, “view only” mode, access revoke, etc.
- Data room security features such as two-step verification, remote device purging, etc.
- Integration with third-party apps
- Reliable customer support service
- Audit logs
Most importantly, make sure the data room provider complies with the following security standards:
- ISO 27081
- ISO 27001
- SSAE 16 certification
3. Read online customer reviews
Reading online customer reviews is an important step in the purchase process. Customer reviews can help you with multiple things. For instance, detailed customer reviews address the strong points, unique features, and shortcomings in the data room.
Unfortunately, some data room vendors have corrupted this section by buying fake customer reviews. However, those reviews are usually posted on the company’s own website, so you can look out for third-party or globally recognized websites like:
4. Conduct an online data room comparison
The good thing about the virtual data room market is you can explore so many options. Start with narrowing down some of the best virtual data room providers and then compare virtual data rooms in terms of features, flexibility, ease of use, customer support, and pricing models.
Data room vendors follow different pricing models, including:
- Per-page/document pricing: the vendor charges based on the number of documents uploaded to the data room
- Flat rate: fixed monthly or yearly charges for specified features and storage space.
- Per-user pricing: charges are based on the number of users in the data room.
- Storage-based pricing: vendors following this method usually charge for every gigabyte (GB) you consume.
- Features-based pricing: it is based on the number of features you want in the data room
Some of the best data room providers for startups include iDeals, Ansarada, Google Workspace, and Digify.
Never forget to compare the customer support services while choosing a data room.
5. Ask for free trials
After finalizing the data room providers of your interest, contact them on their websites, email addresses, or whatever channel you are comfortable with. It is highly recommended to get all your queries answered so that you have a clearer picture of everything.
Most importantly, don’t forget to ask for a free trial because it helps you get a practical experience of their services. Free trials will help you assess if a specific data room is suitable for your employees and business or not.
A startup owner knows how important it is to invest financial resources in an optimal way. Virtual data rooms are investments for your business. An uninformed investment not only costs your money but can negatively affect your business operations. The tips mentioned above can help you make a better decision.