The most effective virtual data rooms include features that allow users to browse and read documents. Table of contents, drag and drop capabilities as well as folder and underfolder structure and search capabilities, are all included. To provide greater security, they offer the ability to grant granular permissions to file sharing and viewing (e.g. view only, editing and full downloading and uploading as well as fence view to protect against screen printing and unauthorised viewing remote data wiping, etc.).
A VDR should also offer advanced capabilities like document versioning or Q&A to speed up due diligence. This will help keep projects on track and ensure they are completed. Some, such as FirmRoom, take this even further by offering request management that allows all diligence requests to be synchronized and communications into one central location that is customized for buyers and sellers.
A reliable VDR will also have a customizable dashboard which shows recent activity as well as notifications so that everyone is kept up to date. It should also include features that can speed up the process, eliminating bottlenecks, and ensuring uninterrupted distribution. This includes a complete list of all participants, as well as a grouping based on role or involvement in order to speed up the invitation process.
The goal of the data room is to ensure that sensitive data does not be misused by someone else. Be aware that sharing too much information could be a problem. Investors may become distracted by irrelevant data or make decisions based on inaccurate or inaccurate data in the event that you share too many.