Home > Glossary > VDR (Virtual Data Room)

VDR (Virtual Data Room)

A Virtual Data Room (VDR) is a secure online repository used to store and share confidential information during the due diligence phase of a business transaction, such as a merger or acquisition, fundraising, or licensing deal. VDRs provide a centralized platform for buyers, sellers, and other parties involved in the transaction to access and review documents, exchange messages, and collaborate on tasks.

The use of VDRs enhances the efficiency and security of the due diligence process, as compared to traditional methods of sharing physical copies or electronic files through email or other unsecured means. VDRs are typically managed by third-party providers who offer a range of security and access control features to ensure the confidentiality and integrity of the data.