Virtual Data Rooms is a solution that also has free versions. Such solutions are very advantageous if you just started your business and you need a secure place to put all your sensitive data, and where you can make your first transactions. Typically the requirements of a fledgling business are not that broad, and a company’s limited budget doesn’t likely include the purchase of an expensive solution. In this article, we will give an overview of free virtual data room providers and the possibilities they can provide you.
Free virtual data rooms – overview
Below we take a closer look at free, or inexpensive data rooms, and highlight their main features:
- Box
A Box is an economical option in the form of cloud storage that outperforms even Dropbox. Of course, the program is great for storing large volumes of documents, but it lacks the security features of a higher-quality data room. For this reason, the platform is not suitable for business transactions, especially if large sums are at stake.
- Dotloop
Dotloop offers more features that include auditing, you can track actions taken within the space, as well as collaboration and data management features in the repository. Therefore, the provider may well be suitable for certain transactions. But still, its main drawback remains the lack of security and due diligence features. Dotloop could be a great option for real estate brokers.
- Clinked
Clinked is notable for its quality customer service, which is on call 24/7. Other features of the programs include the ability to manage due diligence and data protection. But despite all these pluses, it’s not suitable for a major transaction like a merger and acquisition because it doesn’t provide detailed access authorization features and can’t properly protect data from leaks.
- Koofr
Koofr is a Hungarian provider that offers 2 GB of free storage and extensive integration capabilities with other cloud storage services. Also, a plus is its user-friendly and simple interface, which reduces your time to adapt to the space. But Koofr doesn’t provide any features to support business transactions.
- Ftopia
Ftopia is a more advanced provider than other options, as it has 10 seats, 3 virtual rooms, and 5GB of free storage. Its features include customizable branding, access permissions, and collaboration features. As security, Ftopia uses data encryption, a security certificate, and backups. But this VDR is still not enough for MIA.
Why are cheap or open source VDRs, not the best option?
As you know, it takes a lot of work to choose the right VDR provider, because not all of them provide the same set of features or their quality. But if you decide to use a free or cheap VDR provider you run the risk of jeopardizing your company’s sensitive data and encountering terrible service. Be prepared for several days before your request is answered.
On the contrary, if you use a better data room, you get a personal manager who will monitor and support your activities, help with difficulties and answer questions. This is a very valuable benefit because this way you work knowing that you have someone to rely on and who can contribute to your safety.
Free VDRs give you virtually nothing but the ability to store your data, so when you transfer and share data, you have to be wary of security issues here.