Virtual data rooms are a safe platform for managing, storing and sharing confidential documents during transactions. All VDR providers provide the same basic functionality, but some specialize in specific transactions or industries. Additionally, they frequently provide a variety of additional features that make their software more efficient and user-friendly.
VDRs also ease the process of raising funding by making financial information about a company accessible to potential investors on a look-only basis, which increases the likelihood that a new venture will succeed. They are particularly helpful during due diligence, when every detail about a business must be reviewed.
When selecting a VDR for M&A teams should take into consideration the amount of storage they’ll require as well as the amount of data each party has access to in the digital workspace. They should also look at the permissions granted to the VDR, which include the ability to limit certain files to “view-only” as well as specific roles.
Other features to look out for in a VDR include drag-and-drop uploading, auto indexing and document numbering, an optical character recognition tool that is able to perform a full-text search across all uploaded documents, dynamic watermarks that appear on top of every document when it is opened or printed as well as the option to include custom branding colors and logos. Some VDRs require users to sign a nondisclosure document prior to downloading any data. This adds an additional layer of security.
The best VDR providers come with multiple security certifications such as ISO 27001 and SOC 1/2/3. They also comply with GDPR, HIPAA, and other regulations. Additionally they should allow users to customize their own security levels and also create the fence view that blocks out certain areas of the document to stop the taking of screenshots. They should be able to provide support through live chat, email and phone.