A virtual dataroom is a safe repository for sharing information with third parties. They typically perform due diligence when major business events happen like mergers, acquisitions or capital raising. In these events, sensitive information is exchanged as well as a vast amount of documents.
Choosing the right VDR features requires consideration of the needs of a business and its goals. These will differ depending on the stage: seed-stage companies focus on presentation materials for investors and growth-stage businesses focus on the business model and market trends for potential investors. Every data room needs to have a clear narrative and all data must be precise and of high-quality.
The best data rooms support these requirements by offering many document viewing and editing features. They include secure PDF printing, download, editable docs as well as ppts, and the ability to view documents in their original formats. A robust tracking system, granular permissions and granular permissions help ensure that all stakeholders have access to the information they need.
Other features that make up the data room are an extensive and flexible search engine, dynamic watermarking, and multilingual support. Dynamic watermarking allows for a customized message, recipient’s IP address, or email to documents. This prevents unauthorized sharing. A data room’s redaction tool can also rapidly black out text and images and prevent the accidental disclosure of sensitive personal or business information. The data room should permit users to upload documents in large quantities, and then organize them in logical ways, such as into folders that are in line with the structure of the project.
