A virtual data room is a secure repository to share information with outside parties. They typically conduct due diligence at major business events, like mergers and acquisitions as well as capital raising. In these situations, a large number of documents are exchanged, and sensitive information must be protected to prevent breaches and compliance violations.
The objectives and these details requirements of the company must be considered when selecting VDR features. The features available will vary based on the stage of the company and the stage of its development: businesses in the early stages focus on investor presentations, while growth-stage businesses place a higher importance on business models and market trends. Any data room should have a clear narrative and all information must be precise and of high-quality.
The best data rooms support these needs by providing many document editing and viewing options. They include secure PDF printing and download, editable docs and ppts, as well as the ability to view files in their original format. The granular permissions, the robust tracking and granular access rights help ensure that all stakeholders can access the information they require.
Other key features of the data room are a robust and flexible search engine, dynamic watermarking and multilingual support. Dynamic watermarking can include personalized messages as well as the recipient’s email or IP address to documents, thereby helping to stop unauthorized sharing. Additionally, a data room’s redaction tools can quickly block out images and text and prevent the accidental disclosure of personal information as well as crucial business information. A data room should allow users to upload documents in large quantities, and then organize them logically, in folders that are in line with the project’s structure.