A virtual dataroom is a cloud-based service that is designed to provide secure storage and sharing confidential business documents. The software provides a unique collection of features, such as advanced permissions, Q&A tool notes and bookmarks and also multi-factor authentication and watermarking. This kind of software is commonly employed for M&A deals, IPOs and real estate asset lifecycle management. However, it can be utilized for any company that requires the specific handling of large quantities of documentation.
A reliable supplier of a data room will understand the requirements of different companies and provide a variety of tools to meet these needs. Administrators can create groups with different access privileges and limit the access to printing, viewing and downloading of files. They can also limit the user’s activity by setting timeouts or auto-expiration and monitor the activity of users and documents with reports.
Many vendors offer extra tools in addition to these standard features, which increase the security and efficiency of a data room. Some offer multilingual search, OCR, file preview and smart AI categories, in addition to the ability to translate documents. This lets users easily navigate through even large volumes of documents. A reliable provider of data rooms will have audit trails that are robust and encryption capabilities that ensure the security of sensitive information. This is particularly crucial if it is used for M&A actions, tenders and capital raising. For instance, if M&A due diligence involves the analysis of thousands of documents, it is vital that the correct people can examine them without fear of divulging information to unauthorised parties.