Secure data rooms (VDRs) are online storage facilities that allow you to store and share confidential information. They are typically utilized in M&A deals as well as collaborative business projects. The major difference between a VDR, and regular cloud storage is that VDRs are designed to be more secure. VDR is designed to help with due diligence and comes with advanced security features like audit logs and two-factor authentication.

A data room was once thought to be a room in which confidential documents were kept for business transactions. They were utilized by investors, brokers as well as banks to look over documents during due diligence procedures for M&As and fundraising. Nowadays virtual data rooms are rapidly replacing physical rooms because they’re less expensive and offer a number of key security features that traditional data rooms lack.

The right virtual data room for instance, enables users to view and access documents from anywhere on the globe. This allows buyers around the globe to gain access to documents that could be the deciding factor in a M&A deal. They can then compete for a price which would otherwise be unattainable in a situation where they only compete against local investors. The company is also prevented from worrying about its documents being lost during transport, or destroyed by fire or storm like they would in a physical location.

Other than document storage and sharing, a virtual data room can also permit users to send comments and questions to owner of the document, which speeds up due diligence while giving better transparency than email or chat. Additionally, the majority of reliable virtual data rooms are able to prevent actions such as printing or copying the contents of the document and will provide strong security against tampering evidence.