What is a Virtual Data Room?
A virtual data room is an online location to store secure documents and files of a sensitive nature. Also referred to as VDR, virtual data rooms are essential when a due diligence process is needed. This could be when a business is going to be sold or when an organisation is being audited. They are used because they can control who sees what at any given time. They are ideal for when an organisation needs to collect files from other parties, so they will allow access to the data room, however that party will not be able to see the other files.
Another common use is when you are sharing documents with multiple other parties, for example with a tender, but you do not want to revile what other parties have access to the same information, keeping the process fair and controlled.
What is a VDR?
VDRs get their name from Data Rooms, which were actual rooms which printed documents where stored and at a point where a business wanted to sell or be reviewed for due diligence, particular individuals would be allowed access.
However, storing physical files in an actual room is expensive and not practical which is why it is not done virtually however instead of building your own solution, you can use third-party providers platforms just like clinked.