A virtual data room (VDR) is an application that allows users to share and store confidential documents online. Businesses across many industries use it to support projects such as due diligence, M&A transactions, raising capital, and audits.

The primary difference between VDRs and tools such as Dropbox www.playdataroom.com/what-is-a-virtual-data-room/ and Google Drive, is that virtual datarooms prioritize security over sharing. They offer various features specifically designed to safeguard business documents from insecure access, including access granted to users along with detailed activity logs and watermarking options that can be personalized.

The majority of virtual data rooms feature advanced search filters that permit users to locate documents in seconds. They also feature the drag-and-drop upload tool that allows users to upload large quantities of files. Many VDRs allow the insertion and display of metadata that is custom-designed.

Another feature common to most VDRs is the logical file structure that they use to organize their data for easy navigation. They have folders and subfolders with numbers to make it easier for users to navigate around the data room. VDRs typically include tools that allow for the customization of the look and feel of the data room, as well as the option of adding logos and branding of the company and colors schemes and an NDA. They also offer various ways to facilitate collaboration between the various stakeholders and teams.