The most effective virtual data rooms include features that make it easier for users to browse and read documents. These include a table of contents, drag-and-drop features, subfolder and folder structure and search capabilities. To provide greater security, they also provide specific permissions for sharing files and viewing (e.g. view only, editing and uploading with full capacity; fence view to prevent screen printing and unauthorised viewing remote data wiping, and so on.).
Another factor to consider is whether the VDR provides advanced functionality, like Q&A and document versioning, which can help streamline due diligence and keep projects on to schedule. Some, like FirmRoom go further by providing request management, which can synchronize all diligence and communication requests in one location, and is customized for both sellers and buyers.
A reputable VDR will also have an individual dashboard that shows the most recent activity and notifications to ensure that everyone is up to date. It should also include features that speed up the process by removing obstacles and ensuring distribution without interruption. This includes the list of all possible participants and grouping them by the role or participation to make the invitation process more efficient.
In the end, the purpose of any data room is to provide all of the information needed to reach a decision while keeping sensitive data out of the wrong hands. It’s crucial to remember that there is such a thing as too much informationin the event that you share more data than required, investors could be distracted by irrelevant information, or make decisions based upon unreliable or incomplete data.
