A Virtual Data Room is an online repository of documents that allows authorized users to upload and retrieve sensitive information. The best VDR providers provide a complete set of features to optimize business processes across a variety of industries. A VDR for business is ideal for all situations that requires external parties to scrutinize sensitive documents and files. This could be due diligence for law firms in an M&A or financial analyst reviewing budgets and economic reports, or a mortgage broker reviewing loan applications.

The most effective VDRs offer tools to efficiently organize the files and documents making use of automatic indexing, simplified workflows that can be customized with templates tax due diligence and flexible permission settings to manage the use of the software. They also assist in increasing project productivity by facilitating discussions with collaborating parties and providing a rich searching experience through filters, bookmarks and favorite folders, and endless scrolling. The most effective VDRs also let you track and monitor who is visiting the VDR and which pages they are visiting. This data is valuable and can be used to refine projects or discover new opportunities.

A good VDR also has robust security features, including two-factor authentication, fence view and other features that block authorized users from taking photographs or screenshots of confidential files. Administrators can also restrict access by restricting hours of use and IP address, so that anyone who gains unauthorised access to the computer won’t be able to access the VDR.