Virtual data rooms are commonly employed by companies to share confidential documents with multiple parties. These platforms are software-based and allow authorized users to access documents from any device. They tend to prioritize security over sharing and provide multiple layers of protection in order to keep documents private.

The majority of VDR providers also feature an extensive selection of support services to assist customers in their use of the platform. There are also videos for training as well as live chats in the app as well as phone support. Most modern VDRs run on the cloud and are compatible with mobile devices. This makes them simple to use from anywhere, at any time.

Virtual data rooms can be used to share sensitive data and are particularly useful for complex financial transactions such as mergers or acquisitions. Both sides of a transaction will need to review and approve the documents before the transaction can take place. Using VDRs to keep and share VDR to store and distribute the necessary documentation will ensure that the business is audit-friendly and compliant with minimum effort.

Some of the key features that most VDRs include are redaction (blacking out areas of a file so personally-identifiable information stays private), fence view (which shows only a small part of a document and prevents screenshotting) and granular document permissions (controlling who can read, edit, download, print and upload). Certain VDRs have branded watermarks that ensure that the documents printed or downloaded are identical.