FAQ about VDR
Virtual Data Room is a secure online environment (internet repository) used to store and share sensitive files. It is most commonly used in due diligence processes, mergers and acquisitions (M&A), audits, and other activities requiring the highest level of data protection.
VDR it works as an online tool, available 24/7 via a web browser, which gives entities full control over access to documentation. Administrators can set permission levels, track user activity, conduct Q&A communication, and guarantee the confidentiality of all shared materials.
At first glance, both tools are used for file sharing, but they differ in terms of security and data control. Cloud drives are designed for everyday collaboration and do not allow you to control what happens to a document after it has been sent.
The Virtual Data Room offers much higher security standards, allows for precise access management, and has extensive reporting mechanisms. This makes it indispensable in due diligence processes, M&A projects, and other business transactions requiring confidentiality.
A Virtual Data Room is designed for companies, institutions, and professionals who need to securely share, store, and manage confidential documents. It is most commonly used by:
- Companies and corporations – in M&A transactions (mergers and acquisitions), restructuring, audits, due diligence.
- Startups and investors – for secure sharing of financial and legal documentation in the capital raising process.
- Law firms – when serving customers who require complete confidentiality and control over documents.
- Investment funds and private equity – for analyzing portfolio companies and transactions.
- Financial institutions and banks – in credit processes and asset management.
- Commercial real estate industry – during the sale of large properties, due diligence analyses, or contract negotiations.
- Public sector and administration – in tenders, infrastructure projects, or international cooperation.
In short, a VDR is for any organization that needs to protect sensitive data while providing controlled access to it (e.g., investors, partners, or advisors).
Virtual Data Room helps maintain confidentiality through several key mechanisms:
- Access control – documents are only accessible to authorized users, and permissions can be precisely managed at the level of individual files and folders.
- Protection against copying and modification – Fordata VDR protects over 30 file formats from unauthorized editing and further distribution.
- Data encryption – information is transmitted and stored using certified, secure servers (ISO 27001).
- Activity tracking – the system records who viewed which documents and when, which increases transparency and allows for a quick response to suspicious activity.
- High safety standards – the servers are located in the EU, which guarantees compliance with the GDPR and other regulations such as DORA, NIS2, MIFID, and MAR.
Data in Fordata VDR is protected on multiple levels:
- Stored on certified servers in the EU, compliant with the GDPR;
- Files are encrypted during transfer and storage;
- Only authorized users with the appropriate permissions have access;
- Files are protected against copying, editing, and printing with dynamic watermarks;
- The system records all activities, and the screenshot blocker provides additional protection for documents.
This guarantees complete security and confidentiality of data during M&A.
Fordata VDR provides full support at every stage of the transaction. Our team of specialists is available 24/7 to assist with data room setup and operation, efficient document uploading, and technical troubleshooting.
In addition, we advise on selecting the best service package and suggest ways to streamline the process so that the transaction proceeds quickly and smoothly.
Fordata VDR enables secure storage and sharing of sensitive documents. It offers, among other things, full access control, advanced user activity reporting, fast file uploads, as well as tools for anonymizing and translating documents. This makes processes such as due diligence, audits, and negotiations simpler, faster, and completely secure.
 
															