KNOWLEDGE
What is a virtual data room?
A virtual data room (VDR) is a secure online space to store confidential documents and share them in a controlled way with parties outside your organisation.
In short
Where you once set up a physical room full of binders for an acquisition, you now open a virtual data room. Buyers, clients, counterparties and advisers get access to exactly the documents meant for them, and you see who viewed what.
What is a data room used for?
- Mergers and acquisitions: due diligence with several bidders and a Q&A round.
- Law firms: sharing case files and exhibits with client, counterparty and experts.
- Mortgage advice: collecting documents from applicants without e-mail attachments.
- Accountancy: PBC lists and annual accounts files.
- Notaries and real estate: transfers, estates and property deals.
What to check when choosing
| Topic | Question to ask |
|---|---|
| Encryption | Is every document stored encrypted, and who manages the keys? |
| Location | Is the data in the EU, and does the provider have a US parent company? |
| Permissions | Can you decide per group, folder and document who may view, print or download? |
| Watermark | Does every viewer get their own watermark on what they view? |
| Audit trail | Is every action recorded, and can that log be changed afterwards? |
| Sign-in | Is two-factor authentication on, and how do guests sign in? |
| Price | Do you pay per page, per GB, per project or per user, and do guests count? |
| Honesty | Which certifications and guarantees does the provider really have, and what does it not promise? |
Data room or shared folder?
A shared folder in OneDrive, Google Drive or Dropbox is made for collaboration within a team. A data room is made for sharing with outsiders: with watermarks, download control, internal areas, a Q&A module and a complete audit trail.
How The Dutch Dataroom does it
A key per document, EU hosting without US cloud, two-factor sign-in on by default, a hash-chained audit trail, and a price per internal user with guests always free. Read more about security, the industries and pricing.
FREQUENTLY ASKED QUESTIONS
About virtual data rooms.
What is the difference between a data room and a shared folder?
A shared folder controls who can reach files. A data room also controls what someone may do with them (view only, print or download), watermarks what is viewed and records every action in an audit trail.
When do I need a virtual data room?
As soon as you share confidential documents with parties outside your firm and must be able to show afterwards who saw what: due diligence, litigation, mortgage applications, annual accounts or a property transfer.
What does a virtual data room cost?
Many providers charge per page, per GB or per project. At The Dutch Dataroom you pay per internal user, from €180 per year, and all guests are free. There is also a free version with one dataroom.
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