Online data room providers offer secure file sharing platforms that can be customized with permission settings. They are commonly used during due diligence in M&A transactions as well as other business processes that are sensitive.

The process of setting up a data room typically presupposes registering an account, adjusting security and notifications settings and uploading documents. Logging in gives users access to their dashboard which displays their most recent activity, documents, and notifications.

The most effective VDR software is one that has intuitive functionality and a well-understood interface that makes it simple to use by even non-technical employees. They also facilitate easy collaboration between the parties involved, easy access anytime of the day, and offer mobile apps that make it much easier to work remotely on projects.

Additionally, they feature strong encryption of data both in transit and in rest, with customizable watermarks that make it difficult for hackers to locate their data breaches and granular user permissions that ensure only authorized people are able to download and view files from the virtual data room. They also have a built-in NDA Data Rooms which requires visitors to follow certain rules when handling data.

Another benefit is the capability to personalize a virtual data room, to make it instantly identifiable by its name and colors. Many vendors also offer many options for customization such as the addition of a logo, branding options and even defining the label of documents. It is easier to locate a document within the dataroom without having to look through email or other communication channels.