An online data room is a secure, user-friendly platform to share and collaborate on sensitive documents. They are utilized in a range of projects that require a high security and privacy, like M&A transactions such as venture capital and private equity financings, lending and loan syndication as well as due diligence and litigation support.
One of the main reasons to use online deal rooms is M&A due diligence, in which both buy-side as well as sell-side businesses need to prepare and review massive volumes of documents. The ability to have all the documentation all in one place, and secure, allows both parties to take quick decisions. It also reduces the risk that a deal might fail due to the discovery of sensitive information.
To safeguard sensitive reference https://technoonline.net/understanding-the-importance-of-securedocs-data-rooms/ information, the majority of virtual data rooms have granular document permissions which allow administrators to define access rules for each folder and each file 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. Furthermore, many VDRs have security certifications that prove their reliability, such as ISO 27001, SOC 1/2/3 GDPR, SOC 1/2/3 and HIPAA.
Online deal rooms are also characterized by their seamless integration through APIs with the existing tools and system. This makes them compatible to many popular applications and programs, including Microsoft Office, email and chatting apps. This dramatically streamlines workflow and enhances collaboration and communication. A lot of online deal rooms provide round-the-clock customer service through multiple channels, as well as a variety of instructional videos to help users get up and running.