What is a Virtual Data Room?

A virtual dataroom (VDR) can be a secure, online platform that is used for due diligence or for confidential transactions. VDRs are specially designed platforms that can handle large volumes of sensitive documents. They provide increased security, advanced document management capabilities, and compliance adherence. They differ from general storage options like Dropbox, Google Drive, and Box because they have specialized features that streamline and expedite document sharing projects.

Some of these features include the ability to grant granular access rights, real-time vector watermarking, and labels to categorize files. They also track activity down to the page level to reveal who viewed what and for how long. They provide an audit trails that are vital to demonstrate compliance and proof of due diligence. They also have advanced features such as redaction which allows you to hide personal information by obscuring out certain areas of your files and fence view, which hinders screenshots.

VDRs are hosted on the internet, so users from all over the world can access them. This worldwide accessibility boosts the competition between potential buyers and can help a ma closing checklist business which is acquired get a higher price than it could to secure a place in a local market where investors are restricted to the region.

VDRs can be used to gather and share information for investment fund rounds, M&A plans, legal cases and much more. They are less expensive than physical rooms, since businesses only have to pay for the secure computer system and the costs of hosting the data online. They also reduce travel expenses as buyers are able to go through documents from the convenience at their workplaces instead of commuting to the offices of the seller.