SFTP transfers files.Peony runs your external diligence.
Pick SFTP if you need machine-to-machine ongoing structured data feeds (vendor integrations, ERP exports, regulatory submissions). Pick Peony if you need NDA-gated external diligence with page-level analytics, dynamic watermarks, screenshot protection, and per-viewer audit trails — without SSH-key provisioning, FileZilla installs, or command-line walkthroughs for your buyers.Set up in under 5 minutes.
No credit card required
Side-by-side comparison
SFTP is a file-transfer protocol over SSH — appropriate for machine-to-machine structured data exchange. Peony is a purpose-built virtual data room with page-level analytics, dynamic watermarks, NDA gates, and AI Smart Q&A — designed for fundraising, M&A, due diligence, and litigation distribution.
PeonyWhy deal teams add Peony alongside SFTP
Most M&A advisors and PE funds keep SFTP for ongoing machine-to-machine flow (vendor integrations, EDI, monitoring feeds) and add Peony for human-driven external diligence. The two solve different problems — and using SFTP as a data room creates structural friction at every step of an external process.
No SSH-key provisioning
SFTP requires SSH key generation, FileZilla install, and command-line walkthroughs per counterparty. Peony issues NDA-gated links in 5 minutes — counterparty signs and accesses via browser.
Page-by-page analytics
SFTP logs file transfers — Peony shows which page each buyer or investor read for how long. Prioritize follow-up with the bidder deepest into your financial model.
Dynamic watermarks at view time
SFTP has no watermarking. Peony renders viewer name, email, IP, and timestamp on every page at view time — a leak traces back to the specific viewer.
NDA-gated access with e-sign
SFTP gives access the moment the SSH key is shared. Peony requires every counterparty to sign your NDA via integrated e-signatures before any folder loads.
When to use each platform
SFTP is excellent for machine-to-machine ongoing structured data feeds. Peony is the better choice when external counterparties need to read documents in a browser with NDA gating, identity-stamped watermarks, and per-page audit trails.
Choose SFTP when you need
Machine-to-machine ongoing structured data feeds (vendor integrations, EDI, ERP exports)
Regulatory and compliance submissions to external systems (FDA, FINRA, NACHA, FedACH)
Bulk eDiscovery production transfers between law firms
Monthly borrower or portfolio company financial-pack submissions to monitoring software
CRO sponsor-feed clinical trial data flow during in-trial execution
Choose Peony when you need
NDA-gated external diligence for fundraising, M&A, or LP reporting
Counterparties to access in 5 minutes via browser, not SSH-key provisioning
Page-by-page analytics showing which buyer, investor, or expert witness read which document for how long
Dynamic viewer-identity watermarks burned into every page at view time
Screenshot protection across desktop and mobile
AI-powered Smart Q&A so counterparties get instant document answers
Visitor-group permissions segregating bidders, lender syndicates, and expert witnesses
What Peony gives you that SFTP cannot
Counterparties access in 5 minutes via browser, not SSH key
SFTP requires the counterparty to install FileZilla, WinSCP, Cyberduck, or use the command line — and to manage SSH keys with their IT team. For an M&A buyer's CFO, an investor partner, or an expert witness reviewing evidence, this is a multi-day process that signals an unprofessional workflow. Peony issues an NDA-gated link in 5 minutes; the counterparty signs your NDA via integrated e-signatures and reviews documents in browser immediately. No SSH key. No client install. No IT ticket on either side.
Screenshot protection
Block screen captures of sensitive deal documents across desktop and mobile. SFTP has no concept of screenshot protection — once the counterparty has the file, they can do anything with it.
Dynamic watermarks at view time
Every page stamped with the viewer's name, email, IP, and timestamp at the moment of viewing. SFTP transfers files unchanged — leaks are untraceable to specific viewers.
NDA-gated access
Require counterparties to sign an NDA before they see a single page. Built-in e-signatures. SFTP gives access at the moment the SSH key is shared.
Know exactly which slides each counterparty cares about
SFTP logs file transfers but tells you nothing about how long a specific viewer read which page. Peony shows which pages each viewer read, time per page, and total engagement across the data room. Prioritize follow-up calls based on real engagement data, not transfer logs.
Counterparties get instant answers without waiting on email
SFTP has no document-intelligence layer — counterparties download files and read them in their own apps. Peony Smart Q&A lets investors, buyers, and partners ask questions of your data room and receive instant, citation-grounded answers from your documents — 24/7. Close deals faster by removing information bottlenecks. Every question and answer is logged in the per-viewer audit trail.
"Peony has been great for sharing documents with investors, employees, and customers. It's easy to use, good value, and new features are constantly being added. Definitely recommend!"
Ed Harris
Founder & CEO, Ligo Bio (YC S24)
Frequently asked questions
I'm CFO at a 60-person SaaS company in M&A diligence — IT set up an SFTP server for buyer access. Buyers are complaining about the experience. Is there a better workflow?
Yes. For your 60-person SaaS M&A, Peony Business at $40/admin/month gives buyers NDA-gated access in 5 minutes — no SSH-key provisioning, no FileZilla install, no command-line walkthrough. Each prospective buyer signs your NDA via integrated e-signatures before any folder loads. Dynamic watermarks stamp every page (financial models, contracts, IP documentation) with the buyer-side identity. Page-level analytics show which buyer streams are deepest into which subset — useful for prioritizing the 60-90 day post-LOI confirmatory diligence across 4-8 bidders. SFTP is appropriate for machine-to-machine ongoing data feeds (vendor integrations, monitoring exports, regulatory submissions); for human-driven external M&A diligence, you need a purpose-built data room. Most M&A advisors stop trying to make SFTP work after the third 'how do I open a .ppk file' email from a buyer's CFO.
We're an independent sponsor running a carve-out diligence — counterparty's IT proposed SFTP for our diligence files. Should we push back?
Yes. For independent sponsor carve-out diligence, push back hard on SFTP. Buyer-side legal counsel, lender credit teams, accounting diligence (typically Big-4 audit), and operations diligence consultants all expect a proper data room with NDA gates, dynamic watermarks, page-level analytics, and visitor-group permissions. SFTP gives them none of that — and signals to the seller that you're running an unprofessional process. Peony Business at $40/admin/month gives counterparties access in under 5 minutes via NDA-gated link, with full per-viewer audit trails exportable for post-close reps-and-warranties evidence. Configure visitor groups so each buyer's commercial diligence sees revenue and customer files; their operations diligence sees process and systems files; their lender's credit team sees financial files; their tax counsel sees corporate structure. Carve-out diligence runs cleanly when the data room is purpose-built; SFTP is appropriate for the ongoing post-close data integration, not the diligence process.
I'm a credit officer at a $4B specialty lender — we receive monthly borrower financial reports via SFTP. Should we move that to a data room?
Probably not — SFTP is the right tool for ongoing machine-to-machine data feeds with predictable structured payloads. For monthly borrower financial reporting (CSV exports, PDF financial packages, structured data feeds to your portfolio monitoring system), SFTP plus your portfolio monitoring software is appropriate. Use Peony Business at $40/admin/month for the use cases SFTP cannot serve: amendment-and-waiver diligence rooms with NDA-gated lender syndicate access, restructuring data rooms with multi-party permission segregation (borrower, agent, syndicate lenders, mezz, equity sponsor), distressed-credit information rooms with dynamic watermarks and audit trails, post-close acquisition diligence on portfolio companies. SFTP for ongoing flow; Peony for event-driven external diligence. Most $4B specialty lenders run both for the right purposes.
We're a 25-attorney litigation firm — we've been using SFTP for productions to opposing counsel. Are we missing something?
Yes, in three places. First, SFTP gives no per-page audit trail — you log file transfers but cannot prove which page was viewed by which expert at which time, useful for work-product disputes and sanctions motions. Second, no dynamic watermarks tied to recipient identity — useful when a confidential expert opinion or a privileged production page leaks. Third, no NDA or protective-order gating before access — opposing counsel and experts get the file the moment they have the SSH key. Peony Business at $40/admin/month gives your 25-attorney firm NDA/protective-order gates with integrated e-sign before any folder loads, dynamic watermarks rendered at view time on every page, screenshot protection across desktop and mobile, and per-viewer audit trails exportable for litigation work-product. Configure visitor groups so each expert witness sees only the evidence subset relevant to their opinion. SFTP stays useful for bulk eDiscovery production transfers; Peony for curated late-stage distribution under protective order.
I'm head of research operations at a 600-bed hospital network — clinical research data flows to our pharma sponsors via SFTP today. Should we look at a data room?
It depends. For your hospital network's clinical research data flows: ongoing trial execution with central reading, IRB-aligned audit trails, and HL7-integrated data flows belongs in clinical trial portals (Bioclinica, ICON Imaging Core Lab, Calyx, Medidata Imaging) or sponsor-CRO managed SFTP feeds — both are appropriate. Use Peony Business at $40/admin/month for the use cases SFTP and trial portals cannot serve cleanly: end-of-trial sponsor handover with the curated diligence package, post-trial licensing or M&A diligence on a published indication, regulatory submission packages distributed to FDA/EMA reviewer panels, and sponsor due-diligence on follow-on indications. Peony's flat $40/admin/month covers your 3-4 admin research-ops team for $1,440-$1,920/year flat. See also our /use-cases/dicom-data-room page for medical imaging diligence specifics.
I'm IT director at a 800-person manufacturer — we have SFTP feeds to ERP integration partners and EDI feeds to suppliers. Why would we add a separate data room?
Keep your SFTP and EDI feeds for what they're built for: machine-to-machine structured data exchange with predictable schemas (purchase orders, ASNs, invoices, ERP master data sync, compliance exports). Add Peony Business at $40/admin/month for the human-driven external workflows SFTP cannot serve: M&A diligence rooms when corp-dev is acquiring or divesting business units, customer audits on quality and security with NDA-gated document review, regulatory submission packages (FDA, EU CE-marking, ITAR/EAR export-control), supplier-quality remediation packs distributed to customer engineering teams, and warranty-claim or product-liability evidence distribution. Peony's flat $40/admin/month covers your 4-admin corp-dev/quality team for $1,920/year flat across as many concurrent external diligence streams as you run.
Our 12-person PE fund's portfolio companies submit monthly financial packs via SFTP today — should we push them to use a data room instead?
For ongoing monthly financial reporting (income statement, balance sheet, KPI dashboards, cash position) into your portfolio monitoring system, SFTP feeding into a Snowflake or Domo dashboard is the right architecture. Use Peony Business at $40/admin/month for the use cases SFTP cannot serve cleanly: portfolio company M&A diligence when bolt-ons are being acquired (separate buyer-bidder rooms with NDA gates per portco), exit-process diligence rooms when you're selling portfolio companies (4-8 bidder rooms with visitor-group permissions and watermarks), LP-side reporting and AGM materials with audit trails for LPA-required confidentiality compliance, and sub-line and credit facility diligence with lender-syndicate visitor groups. SFTP for portfolio monitoring flow; Peony for event-driven LP and counterparty diligence.
I'm a partner at a 35-person M&A advisor — IT set up an SFTP server for diligence years ago and we still use it. How do we migrate to a proper data room without disrupting active deals?
For your 35-person M&A advisor running 6-10 concurrent mandates, migration is straightforward. Run Peony Business at $40/admin/month in parallel with SFTP for 30-60 days: stand up Peony for the next new mandate, use the existing SFTP for in-flight deals already past LOI. Peony Business gives you a branded data room in 5 minutes per mandate with NDA gates, dynamic watermarks, page-level analytics, AI Smart Q&A, visitor-group permissions segregating bidders, and per-viewer audit trails exportable for post-close reps-and-warranties evidence. 4-admin team pays $1,920/year flat across all concurrent mandates — no per-deal pricing, no per-page fees, no per-counterparty cost. Most M&A boutiques fully migrate within one mandate cycle once buyers experience the difference between SFTP and a proper data room.