Traditionally companies have invited investors to an information room to look over files for a project like an acquisition or IPO. This type of transaction is extremely time-consuming for all involved, especially when there are hundreds or documents to be viewed. More and more companies use virtual datarooms to provide their documents.
Online data room software allows users to collaborate in real-time with documents and projects. Users can even access documents from anywhere using an app. They also have a lot of control over their rights by granting or restricting certain access levels to documents, based on their roles. Online data rooms also allow users to add digital watermarks that will appear on all documents that are printed, viewed or downloaded.
This allows data room admins to monitor who has accessed what file, when, and for how long. It can also prevent data breaches, by ensuring a secure location for the exchange and storage of documents. Another advanced feature is redaction. This is an excellent tool to have if need to redact images, text, or certain parts of the document. Certain VDRs have this capability in different formats, like PDF, docx and txt PPT jpg gif. Q&A reporting is another feature that allows you to keep records of all questions as well as answers within a virtual dataroom.