A virtual dataroom can be a secure repository to share information with third parties. They typically perform due diligence when major business events take place, such as mergers and capital raising or acquisitions. In these situations there are a lot of documents are exchanged and sensitive information needs to be secured to prevent breaches and compliance violations.
The needs and objectives of the company should be considered when choosing VDR features. These will differ depending on the stage: companies in the seed stage focus on presentation materials for investors while growth-stage companies focus on their business model and market trends for investors who are interested. Every data room needs to have a clear story and all content must be accurate and of high integrity.
To meet these requirements the best data rooms have various document viewing and editing features. They include secure PDF printing and download editable documents and ppts, and the ability to view documents in their original format. Additionally, granular access rights and robust tracking help ensure that all parties have access to the information they need.
Other key data room features include an efficient search engine, dynamic watermarking, and multilingual support. Dynamic watermarking is a way to add a personalized message, recipient’s IP address, or email address to documents. This can deter the sharing of confidential information. A data room’s redaction tool can also rapidly black out images and text to prevent accidental disclosure of personal or sensitive business data. Furthermore, a data space will allow users to upload documents in bulk and organize them in logical folders that are compatible with the project’s structure.