When people think of a data room they immediately think of the due diligence process that supports the financial and legal negotiation of a deal between two or more parties. However, the rapid development of these platforms means that they are now also increasingly being used for all kinds of business transactions such as the sale of assets, fundraising and even restructuring.
The best virtual data rooms offer an array of document management and security features that make it easier to conduct all types of transactions. They typically include auto indexing and bulk uploads which help to set up a robust structure of files quickly. They also feature a search function that combines various criteria to deliver quick and precise results. Some have a ‘fence view’ feature that blacks out a portion of a file to prevent unauthorized downloads or screenshotting. The most reliable providers provide access security features such as multi-factor authentication, flexible permissions for users, and time and IP restrictions.
Some companies incorporate artificial Intelligence or machine learning (AI) tools to reduce the number of documents needed for due diligence. This is especially helpful when dealing with complicated or long documents.
Other key technologies available in the most respected rooms include a drag-and drop interface, multilingual support, OCR and file preview and smart AI categorization. These features make navigation and searching for large amounts of data much simpler particularly when it is in multiple languages.