The most effective virtual data rooms feature features that allow users to review and access documents. Table of contents drag and drop features as well as underfolder and folder structures, as well as search functionality, are all included. For added security, they offer granular permissions for file sharing and viewing (e.g. view only, editing and uploading with full capacity; fence view to prevent screen printing and unauthorized viewing; remote data wiping, and so on.).
Another consideration is whether a VDR offers advanced functionality, like Q&A and document versioning, which can help streamline due diligence and ensure projects stay on to schedule. Some, like FirmRoom, take this even further by implementing request management that syncs all diligence request and communications into one central location and is customised for buyers and sellers.
A reliable VDR should also include a customizable dashboard which shows the most recent activity and notifications so that everyone is up to date. It should also feature features that can speed up the process by eliminating bottlenecks, and ensuring a continuous distribution. This includes the complete list of participants, as well as a grouping based on role or involvement in order to speed up the invitations process.
The ultimate goal of the data room is to ensure that data that is sensitive doesn’t end up in the wrong hands. It’s important to remember that there’s a thing as too much information- if you share more than is required, investors could be distracted by irrelevant information, or make decisions based upon unreliable or incomplete information.