A virtual dataroom (or VDR) is cloud-based repository that enables companies to share confidential documents with third-party parties via the Internet in a secure setting. It also aids in due diligence for M&A transactions as well as debt syndication, private equity and venture capital deals, as well as other.

The best online data rooms allows anyone to access and comprehend crucial documents even if they have no previous experience using digital platforms. They usually provide 24/7 support through multiple channels including live chat in-app, phone, and email and feature videos for training. Modern providers are able to provide responsive mobile apps. Many VDRs provide advanced features to increase efficiency and security such as fence view, redaction, and multi-factor verification.

VDRs are utilized by a wide range of industries for a variety of reasons. Legal firms depend on them to share privileged documents with clients, lawyers and other third parties in litigation, M&A, and other business transactions. Financial institutions and banks utilize them to share documents with investors. Pharmaceutical and biotechnology companies are also using them to share intellectual property information and clinical trial results.

Online data rooms are often essential to due diligence in M&A transactions for businesses that wish to enter a new stage. Many VDRs provide granular information on documents and user activity that is beneficial for M&A teams during the process of selling, helping to stop leaks. They can also assist a business determine the level visit of interest documents are shared with potential bidders or their advisors generate.