A virtual dataroom (VDR) software platform enables users to securely save and share confidential documents online. Businesses in a variety of industries use it to support projects such as due diligence, M&A transactions, raising capital and audits.

The main difference between VDRs and other tools, like Dropbox and Google Drive, is that virtual datarooms are more concerned with security than sharing. As a result, they provide features to guard business documents against insecure access, including user-based permissions. detailed activity logs, and customizable watermarking.

Furthermore, many virtual data rooms have advanced search filters that permit users to locate documents within minutes. Additionally, they usually feature a drag-and-drop upload tool that allows users to upload multiple files at once. Many VDRs also permit the addition of custom metadata that can be searched and viewed from within the platform.

Another characteristic that is common to all VDRs is the logical structure of their files that they employ to organize data for easy navigation. They have folders and subfolders with numbers to make it easier for users to navigate the room. VDRs are also frequently equipped with tools to enable customization of the what is a virtual data room overall design and layout of the data room, as they can include logos, branding, company branding colors, and even a custom NDA. They also offer numerous ways to facilitate collaboration between stakeholders and teams.