The best virtual data rooms feature features that make it easier for users to access and review documents. They have a table of contents, drag-and-drop features, subfolder and folder structure and search functions. They also offer granular file sharing and viewing permissions (e.g., viewing only, editing full downloading and uploading, fence view to prevent screen prints and unauthorized viewing, remote data wipe, and much more) for increased security.
Another factor to consider is whether a VDR provides advanced functionality like Q&A as well as document versioning to help streamline due diligence and ensure projects stay on track. Some, such as FirmRoom, take this even further with request management, which synchronizes all diligence requests and communication in one place designed for buyers and sellers.
Finally, a great VDR allows for a customizable dashboard that displays the most recent events and also sends out notifications to keep everyone up to date. It should also have features that speed up the process, by eliminating bottlenecks, and ensuring uninterrupted distribution. This includes a list of all potential participants and grouping them by role or participation to help accelerate the invitation process.
In the end, the purpose of any data room is to provide all the information needed to make a decision while keeping sensitive data from falling into the hands of a thief. It’s important to remember that there’s no such thing as too much informationin the event that you share more than is needed, investors could get distracted by irrelevant information or make decisions based upon unreliable or incomplete data.