A virtual data room (VDR) is a tool for sharing documents online during due diligence. They are used for M&A transactions, but are also useful for fundraising rounds or other business transactions. They offer many advantages, such as a streamlined due diligence process, secure document storage and sharing advanced security features and easy collaboration. VDR vendors often tout the time and cost savings they offer. They can eliminate paper consumption indexing, photocopying, and printing .