What Is a Virtual Data Room?
Virtual data rooms are often used by businesses to share confidential documents with various stakeholders. These platforms are software-based and allow authorized users to access documents from any device. Most prioritize security over sharing and offer multiple layers of protection in order to keep documents private.
The majority of VDR providers provide a broad array of support options to enable customers to get the most from their platform. Live chat is available in the app, phone and email along with training videos and dedicated team managers or project managers. Most modern VDRs are cloud-based and are compatible with mobile devices. This makes them simple to use from anywhere, anytime.
Virtual data rooms are used to share sensitive data, and are particularly beneficial in financial transactions that are complex, such as mergers and acquisitions. Before an acquisition can be approved, both the buy-side and sell-side must review the documentation and approve the transaction. Utilizing VDRs to keep and share VDR to keep and share the necessary documentation ensures that the business can remain compliant and audit-friendly with the least effort.
Some of the key features that most VDRs include are redaction (blacking out areas of a file so personally-identifiable information stays private), fence view (which shows only a small part of a document and prevents screenshotting) and granular document permissions (controlling who can read, edit, download, print and upload). Some VDRs even have branded watermarking to ensure a consistent appearance and feel across all documents downloaded or printed through the platform.