What is a Virtual Data Room?

A virtual dataroom (VDR) software platform allows users to safely save and share confidential documents online. Businesses across many industries use it to help with projects like due diligence, M&A transactions, raising capital and audits.

The primary difference between a VDR and tools like Dropbox and Google Drive is that virtual data rooms place a premium on security over sharing capabilities. Therefore, they provide features that protect documents from non-authorized access, such as user-based permissions. detailed activity logs, and customizable watermarking.

Additionally, the majority of virtual data rooms feature advanced search filters that permit users to locate documents in seconds. They also include a drag and drop upload tool, which permits users to upload large numbers of files. Many VDRs permit the addition and viewing of custom metadata.

Another characteristic that is common to all VDRs is the logical structure of files that they employ to organize data for easy navigation. In particular, they usually have subfolders and folders which are numbered so that users are able to navigate the data room’s contents. VDRs typically include tools that allow you to customize the look and feel of a data room, and also the option of incorporating logos and branding for the company along with color schemes and an NDA. They also offer several ways to facilitate collaboration between the various stakeholders and teams.

what is a virtual data room