A virtual data room (VDR) is an online repository for secure storage and distribution of digital files. With the capability to integrate advanced security features, they offer more privacy and security than traditional digital file-sharing platforms as well as physical data rooms. VDRs enable users to access information more easily, securely and from any device that is connected to the Internet.
Virtual data rooms are most commonly used by companies to assist due diligence in the process of preparing for a merger or acquisition, or IPO. In these instances, potential investors and other parties need to review various documents. A VDR allows the sell-side to share this information with potential buyers in a secure and controlled environment, without risk of breach or compliance issues.
With advanced features such as watermarks that are granular in their permissions, granular permissions and remote shred, VDRs are well equipped to safeguard sensitive documents from access by anyone else. Even if hackers manage to gain access the system, they won’t be in a position to read the files.
Additionally some virtual data rooms offer administrators detailed reports on user and document activity, allowing them respond quickly when there is a concern. In contrast, physical rooms can be more complicated and take longer to pull the necessary reports. As a result, VDRs are the preferred choice for companies who want to streamline and streamline their due diligence process.
