A virtual dataroom, also known as VDR is a cloud-based repository that allows companies to safely share sensitive documents over the Internet with third party. It also aids in due diligence for M&A transactions and debt syndication, private equity and venture capital deals, as well as other.

The best online data room makes it easy for any business to access and understand important documents, even if they have no prior experience with digital platforms. They offer 24/7 support through various channels including live chat on the app, by phone, email, as well as instructional videos. Modern providers typically also offer mobile apps that are responsive. In addition to the convenience of using the application, a lot of VDRs come with advanced features that increase efficiency and security like redaction, fence view, and multi-factor authentication.

VDRs are commonly used across a range of industries for various reasons. Legal firms rely on them to share privileged documents with clients, lawyers as well as other third parties involved in litigation, M&A, and other business transactions. Banks and financial institutions utilize them to share documents with investors, as well as biotechnology and pharmaceutical companies to share results from clinical trials as well as intellectual property.

Online data rooms are frequently essential to due diligence in M&A transactions for businesses that wish to enter a new phase. Many VDRs provide comprehensive information on document and user activity which can be useful to M&A teams during the sale process. They also allow a company to gauge how much interest shared documents are inciting potential bidders and their advisors.