Traditionally, companies have invited investors to a data room to review the files of a particular project, such as an acquisition or IPO. This kind of transaction is very time-consuming for all parties, especially when there are hundreds or documents to be viewed. This is the reason why more and more companies are choosing to use virtual data rooms in order to provide their documentation.
With the help of online data room software users can collaborate on projects and documents in real time. Apps allow users to access documents even while on mobile. They also have a lot of control over their access rights and can restrict or grant specific access levels to documents depending on their role. Furthermore online data rooms permit users to add digital watermarks that appear on any file that is viewed, downloaded or printed.
This allows the administrators of data rooms to monitor who has opened what file, when and for how long. It can also help to protect against data breaches by providing a secure space for the exchange of documents. Redaction is a further advanced feature. This tool is useful for those who want to remove images, text or particular parts of a file. Some VDRs provide this functionality in various formats, such as PDF, docx, TXT, and ppt jpg. Q&A reporting is another option that lets you keep records of all questions as well as answers throughout the virtual dataroom project.