What is a Virtual Data Room?

A virtual dataroom (VDR) software platform enables users to store and share confidential documents online. Businesses in a variety of industries use it to help with projects such as due diligence, M&A transactions, raising capital and audits.

The major difference between VDRs versus tools such as Dropbox and Google Drive, is that virtual datarooms place a premium on security over sharing. They have features designed to safeguard business documents from non-authorized access, such as user-based permissions. detailed activity logs, and custom watermarking.

Most virtual data rooms also have advanced search filters that allow users to locate documents in seconds. They also include a drag and drop upload tool, which permits users to upload large quantities of documents. Many VDRs also permit the insertion of custom metadata that can be viewed and searched from within the platform.

Another common feature of VDRs is the logical structure of files that they employ to organize data for easy navigation. They typically have subfolders and folders that are numbered to ensure that users can easily navigate the data room’s contents. They also have tools to enable customization of the overall design and layout of the data room as well as the ability to include logos, branding, company branding colors, and even a custom NDA. Most of them also have several ways to facilitate collaboration between stakeholders and teams.

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