Reference
Virtual data room glossary
40 core VDR terms defined in plain English, from deal process and permissions to security certifications and pricing models. Jump to a letter, or open any term for the full definition, related concepts, and the guide that goes deeper.
A 3 terms
Access controls Permissions The rules that decide which users can open, download, print, or edit each folder and file in the data room. In-depth entry Activity tracking Features Monitoring which users open which documents and for how long, feeding reports and engagement analytics. In-depth entry Audit trail Security A tamper-evident, time-stamped log of every action taken in the data room: who viewed, downloaded, or edited each file, and when. In-depth entry
D 8 terms
Data residency Compliance The geographic location where your data is stored, which some regulations and counterparties require to stay in a specific region. In-depth entry Data room administrator Process The person who sets up the room, manages users and permissions, and oversees the index and Q&A process. In-depth entry Data room index Basics The numbered folder-and-file structure that organizes a data room so reviewers can find documents quickly and reference them consistently. In-depth entry Deal lifecycle Process The stages a transaction moves through, from preparation and marketing to diligence, negotiation, and closing. In-depth entry Digital rights management DRM Security Technology that enforces usage rules such as view, print, copy, and expiry on a document wherever it travels. In-depth entry Document versioning Features Keeping a history of file revisions so users always see the current version and can review or restore prior ones. In-depth entry Due diligence Process The investigation a buyer or investor runs to verify a target company’s financial, legal, and operational facts before closing a deal. In-depth entry Dynamic watermarking Security Stamping each viewed or downloaded page with the viewer’s identity, time, and IP address, so a leaked document can be traced back to its source. In-depth entry
E 3 terms
Encryption at rest Security Scrambling stored files on the provider’s servers so they stay unreadable without the decryption keys. In-depth entry Encryption in transit Security Protecting data with TLS while it moves between the user’s browser and the data room servers. In-depth entry Engagement heatmap Features A visual report showing which documents and sections buyers spend the most time on, signaling their interest. In-depth entry
F 3 terms
Fence view Security A screen overlay of bars or a grid that blocks casual screen-scraping and photography while a document is on screen. In-depth entry Flat-rate pricing Pricing A predictable subscription that bundles storage, users, and pages for a fixed fee regardless of volume. In-depth entry Full-text search Features Searching the actual words inside every document, not just file names, to locate information fast. In-depth entry
G 2 terms
GDPR Compliance The European Union regulation governing how personal data is collected, processed, and stored, with strict consent and residency rules. In-depth entry Granular permissions Permissions Access settings applied at the individual file or folder level, so different users see different subsets of the same room. In-depth entry
I 2 terms
Information rights management IRM Security Controls that stay attached to a file after download, letting the owner restrict or revoke access even outside the data room. In-depth entry ISO 27001 Compliance An international standard for information security management systems; certification signals independently audited security controls. In-depth entry
P 2 terms
Penetration testing pen testing Security Authorized simulated attacks against a system to find and fix security weaknesses before real attackers do. In-depth entry Per-page pricing Pricing A cost model that charges by the number of pages uploaded, common on legacy VDRs and expensive for large document sets. In-depth entry
R 2 terms
Redaction Security Permanently blacking out sensitive text or data in a document so it cannot be recovered by the recipient. In-depth entry Role-based access control RBAC Permissions Granting permissions based on a user’s assigned role rather than setting them individually for each person. In-depth entry
S 4 terms
Secure file sharing Basics Exchanging documents with encryption, access controls, and tracking, rather than email attachments or consumer cloud links. In-depth entry Single sign-on SSO Security Letting users reach the data room through their existing corporate identity provider instead of a separate password. In-depth entry SOC 2 Compliance An AICPA audit report on how a provider handles the security, availability, and confidentiality of customer data. In-depth entry Staging area Process A private workspace where the seller assembles and reviews documents before publishing them to invited parties. In-depth entry
V 2 terms
View-only access Permissions Permission to read a document on screen without the ability to download, print, or copy it. In-depth entry Virtual data room VDR Basics A secure online repository where companies store and share confidential documents with controlled, audited access during a deal or transaction. In-depth entry
