A Virtual Data Room (VDR) is a secure online platform designed for storing, managing, and sharing sensitive business documents. VDRs are commonly used in mergers and acquisitions (M&A), legal proceedings, financial transactions, and regulatory compliance to provide controlled access to confidential information. Unlike traditional file-sharing methods, VDRs offer advanced security features such as encryption, access controls, and activity tracking to ensure data privacy and regulatory compliance.

In cloud storage, VDRs serve as highly secure, cloud-based repositories that enable businesses to collaborate with investors, legal teams, and stakeholders without the risk of unauthorized access or data leaks. Cloud-based VDRs provide real-time document access, audit trails, and permission-based sharing, making them an essential tool for organizations handling highly confidential and sensitive business transactions.