A data room is a secure repository (physical or, more commonly today, online) used to store, organize, and share confidential documents with authorized people—typically during high-stakes activities like M&A due diligence, fundraising, audits, or litigation.
When it’s online, it’s usually called a Virtual Data Room (VDR) and it typically includes:
- permission controls (who can see/download/print)
- activity tracking/audit logs (who accessed what, when)
- security features like encryption and watermarking
