A virtual data room or VDR is a secure cloud storage solution that lets companies share sensitive data with third parties. They offer a number of benefits to different industries, such as the ability to collaborate efficiently, access documents at any time and securely store multiple versions of the same document.

Virtual data rooms can be employed in nearly any field that requires sharing confidential information with third parties. Due diligence in M&A fundraising, M&A, and an initial public offering are among the most lego duplo stones popular use cases. Virtual data rooms are primarily useful to the legal and healthcare industries which handle sensitive documents and highly confidential information.

Due diligence in M&A requires potential buyers to review extensive documentation. A VDR can simplify this process by offering features like automatic indexing, search-full-text search and control based on roles. The VDR can also help M&A professionals to stay in compliance with regulations by using protocols reporting tools and robust security measures, including watermarking, encryption of information and virus scanning.

A VDR can aid in this collaboration by providing effective tools for communication, including comments sections and Q&A. The top-rated VDRs also let you track user activity with extensive reports and logging features. Pricing is similar to that of cell phone plans and internet with a base cost and optional add-ons that are based on the features or duration.