A virtual data room (VDR) is a secure, online repository used to share confidential documents with controlled access. Traditional use cases include M&A diligence, fundraising rounds, IPO preparation, litigation, and audits.
Key features that distinguish a data room from a generic cloud folder: per-recipient folder permissions, click-through NDA on entry, watermarking with the recipient's email, full audit logging (who viewed what, when, for how long), download restrictions, and indexed full-text search.
Legacy VDRs (Datasite, Intralinks) charge per-deal fees ranging from $1,200–$10,000 per transaction. Modern alternatives like Dataroom include unlimited data rooms on a flat $9.99/month per-Organization plan.