A virtual data room is a secure storage space for sharing information with other people. These parties typically conduct due diligence during important business events, such as mergers and acquisitions as well as capital raising. During these processes sensitive information is shared as well as a vast quantity of documents.
Choosing the right VDR features requires a careful assessment of a company’s needs and objectives. These may differ based on the stage: companies in the seed stage focus on investor presentation materials and growth-stage businesses focus on the business model and trends for potential investors. However, any data room should be able to provide a clear, concise narrative and make sure that all information is accurate and reliable.
The most effective data rooms accommodate these requirements by offering a variety of document viewing and editing options. They include secure PDF printing and download, editable docs, ppts and the ability view documents in their original formats. The granular permissions, the robust tracking and granular permissions ensure that all stakeholders have access to the information they require.
Other important features of the data room are the ability to use a flexible and robust search engine, dynamic watermarking and multilingual support. Dynamic watermarking allows for a customized message, recipient’s IP address or email address to documents. This prevents unauthorised sharing. The redaction tool of a data room can also quickly black out images and text to prevent accidental disclosure of sensitive business or personal information. Furthermore, a data space will allow users to upload documents in bulk and organize them in logical folders that correspond to a project’s structure.