A virtual data room (VDR) is a safe online environment that allows collaboration during the review of confidential documents. During M&A transactions, for instance companies can transfer files to potential buyers without fear of their information being stolen or divulged.
VDR features include access control granular to each document, file-by-file, insights into the changes to documents, two-factor authentication, complicated passwords as well as customizable NDAs that can be customized. They are also designed to stop data leaks and other security breaches. Additionally the VDR offers the ability to integrate with other productivity tools, such as project management software as well as communication platforms and document editing software.
If a business decides to expand or form strategic alliances, it must often transfer large volumes. Virtual data rooms are an easy way to share the information with partners around the world. Both parties can use them to work together and speed up decision-making processes.
One of the best ways to explain how a virtual data room differs from other storage options is to consider an actual space that is filled with filing cabinets. The person in charge of the room decides which cabinets are visible to every person and what’s inside. Virtual data rooms are similar to physical data rooms, but they are managed more conveniently and accurately on any device. An administrator can, for instance activate a feature called fence view to black out sensitive information from a document in order to protect it from disclosure.