What Is a Virtual Data Room?

A virtual dataroom (VDR) offers a secure platform to share documents with multiple users simultaneously. VDRs can be used to securely collaborate with external parties or internal teams working on documents, regardless of whether your organization is involved in M&As due diligence litigation, or other projects.

The most common use case for VDR VDR is M&A due diligence. When merging or purchasing an enterprise, it is essential to share large amounts of sensitive intellectual property and financial documents. VDRs aid in the process by providing a collaborative space as well as detailed activity tracking and an audit log.

VDRs also help businesses analyze the potential interest in shared documents which can be useful during fundraising or M&A activities. This insight can help companies to tailor their pitch decks or negotiate with potential investors and partners. For example, for life science firms, VDRs can provide granular information about the time prospective buyers spent reading specific company documents to gauge level of engagement and the types of information that are most valuable to them.

The best VDR is a matter of evaluating the various factors such as feature sets, cost, security features and user-friendliness. Many VDR providers offer trial trials for free to allow customers to test their product prior to uploading their data.

Digify’s fully customizable interface and advanced branding options make it simple to tailor virtual data rooms your VDR experience to your brand identity. This includes custom login screens, email layouts, and white-labeled URLs. We also allow you to add a configurable About page, and also specify labels for documents.