What is Virtual Data Room Software?

A VDR is a virtual online space that lets users collaborate and share documents that are time-sensitive. It is a convenient and secure alternative to other document management solutions like file-sharing services and physical data rooms. VDRs are used across many different industries and deal types, from M&A to land and housing deals. VDR software allows due diligence and disclosure of transactions regardless of the domain of business. It offers users an easy-to-use platform for securely uploading and managing many documents.

VDRs are usually hosted on premises or in the cloud. They are available with a range of hosting options, ranging from self-hosted to hybrid, to fully virtual. Users can select the option of a more granular sharing model, which restricts downloads and uploads https://vipdataroom.com/what-is-virtual-data-room-software/ to an exclusive group of collaborators, or one that allows unlimited partners accounts to allow for collaboration across the ecosystem. VDRs also have simple audit trail and reporting capabilities to monitor the activity of documents — right down to who is downloading or viewing which documents.

It is important to confirm the authenticity of the certificates issued by the VDR provider and ensure that they comply with the highest security standards. Look for features such as two-factor authentication, multiple levels of permission and IP-address-based access restrictions. A user-friendly interface, including drag-and-drop and bulk uploading capabilities, is also essential for seamless experience when working on platforms. Other useful features include automatic index numbering, watermarking digitally and dynamic tagging of file metadata.