A virtual dataroom provides an unsecure platform for sharing documents. It can include an archive for long-term storage and also lets users collaborate on documents at the same time. It also provides security features like password protection, audit logs and file version control.
Typically, companies involved in M&A due-diligence use a VDR. It is important to know who has accessed sensitive information and when. A VDR that has a strong management system and retention policy can assist in preventing data breaches, and swiftly revoke the access of those who no longer need it.
A robust search engine is a crucial feature. It can locate information in large documents and show snippets of these documents in the search results. This helps users quickly identify and choose the correct files to open. Another feature is document annotation that lets multiple users add comments and notes to the same file, and makes it simple to share those annotations with other users.
Another feature that is useful is the ability to rapidly cut off a single picture, paragraph or section of a document, making sure that confidential information isn’t displayed to anyone who does not have a need to view it. VDRs also have the ability to automatically add watermarks that display the user’s name, IP address and date/time that a document was viewed or downloaded. This is especially useful if you need to adhere to regulatory compliance requirements such as HIPAA, GDPR or CCPA.
