What is a Virtual Data Room?

A virtual data room is a safe, online repository of documents that is used to exchange confidential information between companies. It allows for secure collaboration in a protected environment. It also gives access to documents at any point via a web browser or tablet apps. Its multi-faceted security system safeguards online documents through encryption methods dynamic tags, granular permissions settings and the ability to track every single file activity in a live session. Certain VDR providers also provide additional services that improve data handling. These include redaction (blacking specific parts of PDFs) and fence view (shows only a small part of the document and blocks the use of screenshots) and multi-factor authentication.

There are a variety of reasons why a company may need the use of a virtual data room. However, some of the most frequent uses are mergers and purchases due diligence for capital raises audits, strategic reviews and more. VDRs offer a high degree of security https://vsharepairkodi.com/implementing-role-based-permissions-for-enhanced-data-security/ and are cost-effective in that they eliminate the need for a physical space to be rented, a staff to supervise it throughout the day, and travel expenses for potential buyers to look over documents.

When choosing for a VDR when choosing a VDR, it is important to understand that not all solutions are equal and the price/feature ratio differs greatly between vendors. It is advised to choose an option that offers free trials and a variety of paid plans so that you can test the software, evaluate features and decide which is right for your business.