When companies are negotiating deals or investing, they have to look over a substantial amount of documents. This can be overwhelming, especially when the documents are highly confidential. A virtual dataroom (VDR) allows multiple parties to review documents in a secure environment. This allows deals to progress quickly while minimising any security risks.
VDRs are becoming increasingly useful in a range of industries such as M&A, fundraising and IPOs. The technology is also being adopted by SMEs and start-ups that have hybrid teams that remote workers.
There are many important features to take into consideration when selecting the best VDR service. These include:
Document Security
A VDR should be equipped with a high level of security for documents, and access rights that are customized to the particular project or user. Two-factor authentication is a useful feature because it provides an additional layer of security having users verify their identity using a second method, such as a code sent to their mobile phones.
Document Management Streamlined
There are a number of tools to manage projects. Document version control is one of them. Administrators can monitor the history of documents and determine when they have been modified. A useful feature is that you can add notes to any document, but they isn’t visible to other users. This allows team members to highlight the most important data room virtual areas of a document, and can help avoid the possibility of miscommunication.