An online data room is a secure user-friendly and safe platform for sharing and working on sensitive documents. They are utilized for a range of projects requiring high levels of security and privacy. These include M&A transactions as well as venture capital and private equity loans, funding, loan syndication and litigation support.
Deal rooms online are an excellent tool for M&A due-diligence when both the sell-side as well as the buy-side need to prepare and review a huge amount of documents. The ability to store all the documents in one safe location lets both parties make informed decisions quickly and reduces the chance of deal failure due to the discovery of sensitive information.
To protect sensitive data Virtual data rooms provide the ability to grant access to documents in a way which allow administrators to define the policies for each folder as well as files in the repository. They can also enable redaction, fence view (which blacks out certain areas of files to ensure personally-identifiable data stays private) and prevent screenshotting. Most VDRs also come with security certificates to prove their reliability. These include ISO 27001 and SOC 1/2/3.
Another important feature of deal rooms online is that they permit a seamless integration with existing tools and systems via APIs. This makes them compatible with a number of popular software and applications, including Microsoft Office, email, chatting apps and more. This streamlines the workflow, improves communication and collaboration. Additionally, a majority of online deal rooms offer 24-hour support through multiple channels, and offer a range of instructional videos to help users get started.