FAQ
A Virtual Data Room (VDR) is a secure online space for sharing confidential documents, most commonly used during M&A transactions, audits, due diligence processes, and other activities that require data security.
A VDR operates as an online platform that enables controlled access to documents. Users log in via a web browser 24/7, and administrators assign access to specific folders/files with defined permissions (e.g., view, save, print) while also monitoring activity.
A Virtual Data Room provides a much higher level of security, control, and compliance compared to traditional file-sharing methods like email or common cloud services such as Google Drive, OneDrive, or Dropbox. It allows precise access management, user activity tracking, and protection against unauthorized downloading or printing. This solution is designed for transactions requiring the highest level of confidentiality—such as mergers, acquisitions, due diligence, or investor negotiations.
Although VDRs and traditional cloud drives share many features, they differ significantly in purpose, security level, and functionality. Understanding these differences helps to better match the tool to specific needs—both in business and individual contexts. Learn more in the article: “What is the difference between cloud storage and a Virtual Data Room?”
A VDR is designed for businesses, organizations, and professionals who handle sensitive information and need advanced security and access management. It is commonly used by:
- Companies involved in M&A transactions (mergers and acquisitions)
- Private equity and venture capital funds
- Law firms
- Auditors
- Companies planning IPOs or seeking funding
- Financial institutions and banks
- Medical and manufacturing companies protecting intellectual property
- Energy and renewable energy sector companies
- Entities carrying out Public-Private Partnership (PPP) projects
- Companies and investors in the commercial real estate sector
If you are looking for an investor or selling a company/shares, at some point, you will need to share your company’s documents with potential investors, including confidential and proprietary information. A VDR allows you to create a fully protected repository of the documents expected by investors and share them in a convenient and controlled manner for analysis.
Documents stored in the VDR are secured against saving, printing, and editing, have watermarks, and allow you to hide sensitive information. From the perspective of a company owner who is uncertain about finding the right investor, these are crucial mechanisms that protect their interests in the long run. It’s essential to safeguard your company’s interests when giving external parties access to your secrets or intellectual property, especially when the success of the transaction is not guaranteed.
Due to its advanced security and control mechanisms, data rooms are used not only in the M&A sector but are also very popular for due diligence, audits, the life sciences industry, banking, and, more recently, in the renewable energy sector for investment projects.
A Virtual Data Room (VDR) is more than just a document storage system; it’s an advanced tool designed to support investment processes like mergers and acquisitions, fundraising, due diligence, audits and more. It has a range of features that make these processes efficient and secure. For example, the VDR includes a tool to hide sensitive information before sharing documents, secure communication tools for both the seller and investors, and activity reports that help you understand investor intentions and prepare for negotiations.
The main difference between a VDR and regular file-sharing systems is the strong security features that protect the documents stored in Data Room and are absent in typical file-sharing systems. These include read-only mode, preventing documents from being saved to a disk or printed, blocking screenshots, watermarks, and a simple yet powerful permission model that lets you control who can access specific files and to what extent.
Additionally, the VDR comes with 24/7 technical support (which is crucial for international transactions) and other deal-related services like organizing and uploading documents, managing the VDR on behalf of the client, and preparing a Data Room archive with a data compliance certificate, often required as part of the investment agreement.
Our 1600+ Clients trust us for being a right-away & flexible VDR partner.
We act quickly because we know that time is crucial in the M&A industry. Our sales representatives and support team respond immediately, answering your call within 15 seconds, replying to your emails within 15 minutes, even after 5 PM, as we understand you often work beyond regular hours. The system itself is extremely fast and reliable, and we are continually investing in product development to make it faster and better with every improvement.
Every client is our VIP client, regardless of the size of your company or scale of the transaction. 77% of our clients come from referrals, as we act as their close VDR advisor, trainer, admin & concierge in one.
For our EU-based clients we also guarantee:
- GDPR Compliance
- DORA, NIS2 Compliance
- MIFID, MAR Compliance
- Data processing within EEA
- Data Centers located in EU
Yes, Fordata is GDPR compliant. We implement the security mechanisms required by GDPR in our VDR system, including 256-bit EV SSL encryption, event logging in the Data Room, advanced access authorization (secure passwords, SMS, NDA acceptance), and enforcing periodic password changes. Our data centers are located in the European Union, and we guarantee that the personal data entrusted to us by clients is processed within the European Economic Area (EEA).
Additionally, we meet the formal requirements of GDPR, including:
1) signing a Data Processing Agreement with each client,
2) maintaining a Register of Processing Activities for the personal data entrusted to us by clients, and
3) regularly conducting a Risk Analysis of Personal Data Security Breach (based on a methodology that has been in use at FORDATA for many years).
For 16 years, we have been managing information security in accordance with the ISO 27001 standard, which ensures the confidentiality, integrity, and availability of the data entrusted to us, including personal data. We also regularly raise the team’s awareness of GDPR and personal data security through MISA (Monthly Information Security Announcements) meetings.
Yes, we offer a free 14-day trial of the VDR, allowing you to fully explore the system’s functionality—no credit card required. To start the trial, simply fill out the form.
Launching Fordata VDR is quick and efficient. The system can be ready for use within 15 minutes of placing an order. Uploading 1 GB of data takes approximately 7 minutes. This allows you to start working on your project almost immediately – especially important in fast-paced processes like mergers, acquisitions, due diligence, or fundraising.
If you need assistance during setup or have any questions, the Fordata team is available to provide support and answer all inquiries.
The Fordata VDR interface is available in four language versions: Polish, English, German, and Czech. This allows users from different countries to conveniently use the system in their preferred language- facilitating international cooperation and accelerating project work.
