What is a VDR Online?

A VDR online, also known as the virtual data room or VDR, is an internet repository of documents and other information regarding business transactions and procedures. The VDR administrator is responsible for managing an extranet connection which allows access. Administrators can enable or disable specific user access. The administrator can create or delete folders, modify the structure of folders and set expiration dates on certain documents. They can also watermark documents and pages to prevent print or download.

A VDR is utilized by a variety of different stakeholders in many different transactions and business processes. Mining and Energy companies share large volumes for due diligence, impact assessment and bid management. These companies can share and track documents securely online with VDRs. Advanced VDRs also allow for specific settings of permissions to ensure that third parties can only see the documents they need, and not confidential or sensitive ones.

VDRs are a great method to share large amounts of documents quickly and securely between potential buyers and vendors during the M&A process. In addition, the sophisticated features of versioning and search in a VDR can speed up and simplify the due diligence process.

During fundraising rounds startups and other businesses utilize VDRs for storing and sharing documents with potential investors. The streamlined collaboration features of a VDR, such as document annotations and Q&A sections can facilitate more efficient communication between all parties. The VDR’s monitoring and tracking features help to prevent leaks and ensure only the intended audience has access the documents.