Virtual Data Room is an online repository for digital files. It allows users to collaborate in M&A due-diligence, as well as other transactions that require security. It allows secure sharing of digital documents and speeds the decision-making process. The process is tracked to ensure transparency and accountability. It is more comprehensive and flexible than cloud storage.
VDRs allow users to upload their files and arrange them into a folder hierarchy that they can customize for a specific project. They can then add files or documents to the folders and give access to other users based on their role, responsibilities, and requirements. This can help reduce data redundantness, streamline the review process and ensure a consistent and clean set of documents to be examined.
A VDR can provide users with document-level analytics to aid them in understanding how they are making use of the data. This is vital to increase user engagement and boost adoption, especially if the data is deemed sensitive.
To get started, users simply need to create an account. They do this by submitting their personal information and agreeing to the terms of service. Once their account has been created then they can begin uploading their files and altering security settings to make the virtual data space ready for use. Depending on their file size they may have to upload the files in batches. Some VDR providers provide features like infinite scrolling, which allows users to quickly browse the entire collection of files without having to click.