The digital data room, also known as the virtual data room (VDR) is a tool used for securely keeping and sharing information. This is especially useful for companies that need to deal with confidential or privileged information. VDR software can be a substitute for physical datarooms, and can help organizations improve their efficiency, earn trust with clients and close deals more quickly.

It can be expensive to keep and keep paper documents in a traditional storage room. Electronic documents are less prone to destruction from fires or natural disasters and can be accessed from anywhere anytime. They are also simpler to store and organise. Furthermore, organizations can set up procedures for granting and revoking access to documents, ensuring that if a member of the team leaves the organization or changes roles, it can be quickly and easily managed.

Many deal rooms on the internet offer sophisticated artificial intelligence features, which help organize documents into categories and make them easier for users to find. This can cut down time and speed up due diligence.

Dealmakers place a lot of emphasis on security. Virtual data rooms can provide this, by offering advanced security features like fence view, dynamic watermarking, multi-factor authentication, and customizable advanced permissions. In addition, many online deal room vendors offer the capability of monitoring activities within a virtual room such as who is able to view which documents, and for how long. This can prevent accidental disclosure of sensitive information.