A virtual data room is a safe cloud-based storage facility for storage and sharing of documents with multiple users. Typically, VDRs are used during M&A transactions as well as other business processes but can also be beneficial in internal collaboration and storage of data.
As opposed to physical file-sharing, VDRs provide secure, 24-hour access for users with authorization. They are frequently paired with collaboration tools and workflow automation features to facilitate teamwork and improve efficiency. Most established online data rooms offer the full range of administrative services such as scanning and translating documents as well as data migration with a fee.
VDRs are typically used by immovable property companies to share large amounts of documents with potential buyers and investors. The security level offered by these platforms is crucial, as a lot of sensitive financial information may be shared. Many litigation processes also require a very high degree of confidentiality.
Some traditional VDRs require users to download desktop software or plugins to utilize certain security features. This can delay the process of negotiating deals and could prevent some prospective buyers or partners from accessing the data.
Modern online data rooms contain granular access controls and watermarking of vectors in real-time and classification labels that safeguard sensitive files. In addition, it can detect abnormal behavior such as downloading without authorization or malware detection to stop breaches. It can also integrate with popular productivity tools like project management software and communication platforms to facilitate collaboration and eliminate the need to switch between different applications.