What is a Virtual Data Room?
A virtual dataroom (VDR) software platform enables users to save and share confidential documents online. Companies in many industries use it to help with projects like due diligence, M&A transactions, raising capital and audits.
The main difference between a VDR and other tools such as Dropbox and Google Drive is that virtual data rooms prioritize security over sharing capabilities. They offer several features that are designed specifically to shield business documents from unauthorized access including permissions for users along with detailed activity logs and watermarking options that can be personalized.
Moreover, most virtual data rooms also have advanced search filters to enable users to locate documents within minutes. Additionally, they usually have a drag-and drop upload tool that lets users upload multiple files at once. Many VDRs permit the addition and viewing of custom metadata.
The majority of VDRs have an organized file structure to organize data and make it easier to navigate. They have folders and subfolders which are numbered to make it simpler for users to navigate through the data room. They also have tools to allow customization of the overall appearance and feel of the data room as in addition to the capability to incorporate logos, company branding colors, and even a custom NDA. Most of them also have multiple ways to facilitate collaboration between teams and stakeholders.