What Are the Features and Benefits of Using a High-Quality Data Room?

A high-quality data room presents numerous benefits for your organization. But what are the features that make a high-quality data room worth considering?

Whether you're looking for a virtual data room solution or considering switching from one vendor to another, this article will familiarize you with the key features that every data room should have. Use them as criteria for a full virtual data room comparison - and you'll be all set for making an informed choice.

Benefits of virtual data rooms for businesses

Some of the advantages of using an electronic data room solution include the following.

Secure document sharing

A virtual data room solution makes it easier for you to share sensitive documents securely without worrying about data breaches. This can be quite beneficial in sensitive and complex business transactions such as mergers and acquisitions (M&As), initial public offerings (IPOs), fundraising rounds, and strategic partnerships.

Some of the most notable security features of an online data room software solution include:

• Dynamic watermarking. This feature helps to maintain document ownership and keep record of all interactions with the document.
• Encryption. This feature is essential to make sure that all documents and communications on the VDR remain secure.
• Two-factor authentication. Two-factor authentication requires individuals to go through two steps to log in to the data room securely and prevent unauthorized access.
• Single Sign On (SSO). With SSO, you can use the same credentials to log in to different workspaces securely.
• Compliance certificates. The best virtual data room providers hold compliance certificates that demonstrate their accordance with globally recognized security standards, such as ISO 27001 and SOC 1, 2, 3.

Access permission controls

Another benefit of virtual data rooms is that they provide you with complete control over who can access or edit different documents or folders on a granular level.

You can even make specific parts of a document accessible to particular individuals. Moreover, with remote shredding, you can revoke access to or delete documents even if the user has already downloaded them.

Easy and secure collaboration

Data room services integrate remote collaboration features that enable different parties to communicate effectively and make decisions. Features such as Q&A sections, poll voting, messaging clients, and commenting make collaboration a breeze.

Reporting and analytics

Virtual data rooms provide access to in-depth reports about everything that's happening in your workspaces and transactions. This can drastically support your decision-making process and help you stay on track when going through multiple deals at the same time.

Ease of use

When you compare virtual data rooms, try choosing a solution that anyone can use. A virtual data room should have a simple, user-friendly interface that makes it easy for everyone to view and organize documents in the data room regardless of their technical expertise. You don't have to make your employees or investors go through a steep learning curve to collaborate and work with you throughout the deal.

Artificial intelligence

The rise of AI has made virtual data room vendors incorporate various features that automate document reviewing, check for errors like missing or duplicate files and enable full-text search.

Remote access from any device

Board members are usually on the go, and they need to stay updated with everything happening in their complex business deals. All virtual data rooms are web-based, making them accessible from any desktop or mobile device independent of the user's location.

Integrations

Modern virtual data room solutions provide native integration with popular business software tools to streamline your workflows and make deal management easier. You should also be able to create custom integrations with API access for the apps that don't natively integrate with your virtual data room solution.

Service support

A reliable virtual data room provider will offer you 24/7 support, enabling you to get help quickly whenever you encounter an issue with your data room. Moreover, some virtual data room vendors provide training and onboarding for new employees so they can get up and running quickly.

This makes a virtual data room a reliable solution that you can get support with when required. Not to mention, many providers offer a dedicated project manager that will help you set up and deploy the VDR quickly and ensure a smooth project flow.

Summary

So that was a quick overview of some of the most important features and benefits of a robust virtual data room solution. Now, you should be able to choose the most suitable data room solution for your business.

To make things easier, you might want to consider creating a list of key features you need and prioritizing them based on their importance and estimated value. Good luck with choosing the right data room software!