What is Virtual Data Room Software?

26 Oct What is Virtual Data Room Software?

A VDR is a virtual online space that allows users to collaborate and share time-sensitive documents. It is a convenient and secure alternative to traditional document management solutions such as file-sharing services or physical data rooms. VDRs are extensively used in a variety of industries and for a range of deals. From M&As to land & Housing deals, they are used by a broad range of people. VDR software supports due diligence and disclosure in transactions regardless of the business field. It provides users with Get the facts an easy-to use platform for uploading and managing multiple documents.

VDRs are typically hosted either on-premise or in the cloud. They are available with a range of hosting options, from self-hosted to hybrid to fully virtual. Users can choose between a shared model that restricts uploads and downloads to an exclusive group of collaborators as well as one that allows unlimited accounts for partners to facilitate collaboration within the ecosystem. VDRs also come with simple reporting and audit trail capabilities, to track the activity of documents — right down to who is viewing or downloading which files.

It is important to verify the certifications of compliance of the VDR provider and ensure that they comply with the most stringent security standards. Consider features like two-factor authentication, multiple permission levels and IP-address-based access limits. A user-friendly interface, with drag-and-drop and bulk uploading capabilities is also crucial for an easy experience while working with platforms. Other useful features include automatic index numbering, digital watermarking and dynamic tagging of metadata for files.