VDRs, also referred to as electronic data rooms, also referred to as Virtual Deal Rooms, are online repositories which allow companies to securely transfer documents to facilitate any type of business transaction. They eliminate the necessity for physical paperwork and allow businesses to share important business data with multiple parties at once. VDRs are essential for investments banking processes like IPOs, M&A and capital raising.

VDRMs are also beneficial for executives at the top of the pyramid who need to share confidential files and data with service providers, prospective investors or any other external organizations, HR departments that are responsible for keeping employee records and any other project managers who are involved in various business activities. VDRs have a simple document sharing process and strict security measures to ensure that confidential data doesn't fall into the in the wrong hands.

A typical pricing model is based on a fixed amount of storage space per month or year that makes it ideal for smaller projects where you know the amount additional hints of documents and data you'll need to store and access. This pricing model is best suited for companies that do not intend to exchange large video or audio files.

Other pricing models include flat-fees or subscription-based models. Free file-sharing services, such as Google Drive or Dropbox, provide basic security features, however, they lack the features provided by dedicated paid VDRs. Specialized VDRs for paid use like iDeals SecureDocs and Dealroom provide a range of security options that make them appropriate for document sharing with sophisticated features.