A virtual data room service is a product of software that lets you access an online repository for securely sharing and hosting confidential data. These services are used in various business transactions and processes including M&A litigation, M&A, as well as fundraising. They enable teams of business to efficiently and securely share documents, facilitate collaboration, secure sensitive data and automate processes.

VDRs are cloud-based, and can be accessed at any time, via laptops, desktops or mobile devices. Many modern providers also offer in-app, 24/7 support. Support teams are usually multilingual and include a help center that includes videos of the product. VDRs are less expensive than physical data rooms and their customer service usually provides more personal attention than other cloud storage products.

Most VDRs offer a trial version for free that allows users to try the Virtual Data Rooms software and find out whether it is suitable for their needs. It is a great way to learn more about the program, learn how it works in practice and whether it can be easily adapted to a company’s workflows and IT systems.

M&A due diligence is the most frequent scenario for VDR. M&A deals require a large amount of documents, and it’s crucial that the relevant information is made available to potential buyers in a safe environment without putting at risk breaches and compliancy violations. To aid in M&A due-diligence, businesses often use virtual data rooms that are specifically designed for this use. This lets companies avoid the expense of sending and receiving large amounts of paperwork.