A virtual data room is a secure repository that allows the exchange of files with multiple partners or stakeholders. This type of collaboration is typical in due diligence for M&A deals and fundraising as well as partnerships. It can also be used to create regulatory proposals, internal policies, and procedures. These projects may require sensitive information which is confidential and vulnerable to hacking.

The best VDR providers offer a wide range of industry-strength security features to ensure that the confidential documents you need to sign an important deal or transaction will remain where you want them. These industry-standard features include audit logs and document view history, restricted user permissions as well as a comprehensive set of encryption tools and other tools that protect sensitive information from being accessed by unauthorised users.

Another feature located in the most reliable data rooms is redaction tools. These tools let you efficiently and effectively block out any instance sensitive information contained in a file. This can to prevent leaks that are accidental when an email is accidentally sent Click Here to the wrong person or if a person accidentally uses their personal information to conduct business.

The top virtual data rooms offer features that reduce human error. For example the tool ‘View As allows you to see what a potential viewer would see when they enter your data room. This is a good safety feature when collaborating with partners who aren’t familiar with your business processes.