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What is a Virtual Data Room?

A virtual dataroom (VDR) software platform enables users to securely store and share confidential documents online. It’s utilized by companies in a variety of industries to help with projects such as due diligence, M&A deals, raising capital and audits.

The primary distinction between VDRs and other software like Dropbox and Google Drive, is that virtual datarooms prioritize security over sharing. Therefore, they have features designed to safeguard business documents against insecure access, including user-based permissions. detailed activity logs, and customizable watermarking.

Virtual data rooms usually feature advanced search filters that permit users to locate documents within minutes. They also include a drag and drop upload tool that allows users to upload a large number of files. Many VDRs also allow the insertion of custom metadata that can be searched and viewed from within the platform.

Most VDRs have an orderly file structure that helps organize data and make it easier to navigate. They have subfolders and folders that are numbered to make it easier for users to navigate around the data room. VDRs often also include tools for customizing the overall design and layout of the data room, as well as the ability to incorporate logos, company branding or color schemes, as well as an individual NDA. Additionally, many of them provide a variety of ways to facilitate collaboration among teams and stakeholders.

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