Virtual data rooms have been around since the early 2000s. Since then, they’ve evolved and added new state-of-the-art features to their systems to eventually become what we know them as: secure, flexible, accessible, and simple. As a result, VDRs have become the number one tool in merger and acquisition transactions and many other complex operations. They offer services to all business sectors, offering features that will meet their needs. In this article, we will highlight the features that the best VDR spaces should have.
Document Management
The original purpose of virtual data rooms is to store documents securely, but you need to keep them in a streamlined document management system. Not only does this make it easier for your employees, but it also speeds up the due diligence process, as guest users can more easily adapt to your document system and find the materials they need faster. The features that VDR can offer for effective document management are:
- Mass Load – allows you to load a large stack of documents into a space at once
- Integration – VDR spaces can be integrated into your web browser, or OS, for easier use
- Text search – makes it easy to find the document you want with one or more keywords
- Contains any format – upload any document, and save time on manual conversion
- Labels – improves document categorization and search at the same time
Security
First-class security is a must for any virtual data room because if their protection is not good enough, they cannot be considered professional tools. High security allows users to conduct such complex operations in the VDR space. The best data room systems should include features such as:
- Modern encryption -allows files to be transmitted and stored risk-free because they encrypt the contents of the document from unauthorized users
- Double Authentication – Requires entry of a one-time code to verify user identity, protects login
- Remote destruction – possibility to revoke access to documents at any time
- Watermarks – protects your ownership of the document and prevents data leakage
- Detailed permissions – allows you to disable different document operations, such as copying, printing, editing, uploading, and forwarding
This sets VDRs apart from other cloud-based repositories, giving businesses a secure place to transact and collaborate.
User experience
A virtual data room should successfully combine sophisticated security structures and ease of use and offer:
- Mobile interface -access via mobile OS and devices
- Scrolling feature – allows you to navigate from document to document that easily is in the same folder
- No additional software – saves the need to download an application for full operation
Communication features
Communication tools also play an important role in the VDR space because, this way, you can ensure a more streamlined transaction process with potential clients and improve collaboration efficiency. Usually, VDRs offer either encrypted chats or a question-and-answer section, but as technological advances continue to move, even these features have already undergone modifications. For example, one of the few providers that use the latest communication technology in their operations is Ansarada https://dataroomreviews.org/due-diligence-data-room/. VDR offers:
- Detailed audit trail of all questions and answers, workflow history, roles, and more
- Wider response capabilities-use a comment chain to explain the issue in detail and set up separate question and answer lines for specific user groups
- Automate processes in the Q&A section – settings allow you to redirect questions to the right team automatically
- Manage your work load-you can set limits on how many questions you can ask and how often