A data room is a safe space where business transactions take place. It allows a group of authorized stakeholders to access and look over data that needs to be kept confidential. It also provides a collaboration platform to collaborate. It is usually used to conduct due diligence during the merger, acquisition or an investment round.
Any serious business deal involves having to go through piles of documents. Even though a majority of paperwork is now digital however, managing it can still be a time-consuming and messy process. The right virtual dataroom (VDR) for collaborative work will accelerate the process and more efficient.
It is essential that the VDR provides enough storage space for the number of documents that are expected to be uploaded. It should come with an upload drag and drop function and a simple to use UI that can be used across all devices. Additionally the virtual data room should provide features like document tracking and version control, so that all changes can be recorded and tracked.
Redaction tools are an additional feature that is crucial for the VDR to be used for collaborative work. A quality redaction tool will allow users to quickly and reliably remove privileged information from documents. This can be a significant benefit when dealing with large documents or multiple instances of the same information. It’s also a vital feature when working with partners or clients especially when the document is shared with third party.