The most effective virtual data rooms have features that make it easier for users to access and review documents. These include a table of contents, drag-and-drop capabilities, subfolder and folder structure and search functions. For added security, they offer access to files with granular permissions and viewing (e.g. view only, editing and uploading in full fencing view to block screen printing and unauthorized viewing remote data wiping etc.).).
A VDR should also include advanced functions like document versioning or Q&A to simplify due diligence. This will help keep projects on track and ensure they are completed. Some, like FirmRoom go further by offering request management, which allows you to synchronize all diligence and communication requests all in one place, and can be customized both for buyers and sellers.
A reliable VDR can also offer a customizable dashboard which shows recent activity as well as notifications to ensure that everyone is up-to-date. It should also offer features that help speed up the process by eliminating obstructions and ensuring continuous distribution without interruption. This includes a list of all potential participants and grouping them according to their role or involvement to help speed up the invitation process.
The primary goal of the data room is to ensure that sensitive data doesn’t be misused by someone else. Be aware that sharing too much information can be a hindrance. Investors may become distracted by irrelevant data or make decisions based on insufficient or unreliable data if you share too much.