A virtual data room (VDR) is software that allows users to share and store confidential documents online. It’s utilized by companies across playdataroom.com/craft-a-successful-ma-journey-with-the-insights-from-the-best-data-rooms/ various industries to help with projects such as due diligence, M&A deals, raising capital and audits.

The major difference between VDRs and tools like Dropbox and Google Drive, is that virtual datarooms focus on security over sharing. As such, they offer many features designed to shield business documents from unauthorized access including access granted to users, detailed activity logs and watermarking options that can be personalized.

Moreover, most virtual data rooms also have advanced search filters that permit users to locate documents in seconds. They also have a drag and drop upload tool, which permits users to upload a large number of files. Many VDRs also allow for the creation of custom metadata that can be viewed and searched from within the platform.

Another characteristic common to all VDRs is the logical file structure they employ to organize data for easy navigation. Most notably, they typically have subfolders and folders which are numbered to ensure that users can easily navigate the data room’s contents. VDRs also often feature tools that allow for customization of the overall appearance and feel of the data room, as in addition to the capability to add company branding, logos and color schemes as well as a custom NDA. In addition, most of them have a variety of ways to facilitate collaboration between teams and other stakeholders.