A virtual data room (VDR) is software platform that permits users to store and share confidential documents securely online. It’s used by companies across a range of industries to help with projects such as due diligence, M&A deals, raising capital and audits.
The main difference between a VDR and tools like Dropbox and Google Drive is that virtual data rooms are more concerned with security than sharing capabilities. Therefore, they offer many features that are designed specifically to guard best data rooms business documents against unauthorized access including permissions for users, detailed activity logs and watermarking that can be customized.
Additionally, the majority of virtual data rooms come with advanced search filters that allow users to find documents in seconds. They also include the drag-and-drop upload tool, which allows users to upload large numbers of documents. Many VDRs also allow for the insertion of custom metadata that can be viewed and searched from within the platform.
Another feature common to most VDRs is the logical file structure that they use to organize data for easy navigation. Most notably, they typically have subfolders and folders which are numbered so that users are able to 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 in addition to the capability to incorporate logos, company branding, color schemes and a custom NDA. They also offer various ways to facilitate collaboration between the various stakeholders and teams.