Online data rooms are a user-friendly, secure platform for sharing and collaborating sensitive documents. They are used in a variety of projects that require a high levels of security and privacy such as M&A transactions such as venture capital and private equity financings as well as loan syndication and lending 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 and sell-side companies must prepare and review huge volumes of documents. The ability to store all the documents in a single, safe location lets both parties make informed decisions quickly and reduces the chance of a deal failing due to the discovery of sensitive data.
To safeguard sensitive data the majority of virtual data spaces have documents with specific permissions, which permit administrators to set access policies for every file and folder 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 come with security certifications that prove their reliability like ISO 27001, SOC 1/2/3 GDPR, and HIPAA.
Online deal rooms are also known for their seamless integration via APIs that work with existing tools and systems. This makes them compatible to many popular applications and programs, such as Microsoft Office, email and chat apps. This greatly streamlines workflow and enhances collaboration and communication. Many deal rooms on the internet offer 24/7 customer support via multiple channels, as well as a range of instructional videos to help users get getting started.