A virtual dataroom is a cloud-based service that’s designed for the safe storage and sharing of confidential documents for business. The software includes a set of specialized features such as advanced permissions as well as a Q&A tool, bookmarks and notes and multi-factor authentication and watermarking. This type of software is often used for M&A deals, IPOs and real estate asset lifecycle management. It can be used for any business that has to manage large volumes of documentation.
A reliable vendor of a data room will be able to comprehend the requirements of different companies and provide a variety tools to meet these needs. Administrators can establish different groups with different access rights and limit access to the access to printing, viewing and downloading of files. They can also control user activity with timeouts or auto-expiration and monitor the activity of users and documents with reports.
Many vendors provide additional tools, in addition to the standard features that increase the security and efficiency of the data room. Some of them provide multilingual search, OCR and file preview smart AI categories, as well as the capability to translate documents. This makes it easy for users to navigate through huge volumes of documentation. A good data room provider will have audit trails that are robust and encryption capabilities that guarantee the security of sensitive data. This is especially important if it is used for M&A activities, tenders and capital raising. For example, if the M&A due diligence involves analyzing thousands of documents, it is vital that the correct people can examine them without fear of leaking information to unauthorized individuals.