Businesses frequently divulge confidential information when they perform due diligence in connection with M&A, partnerships or fundraising. Although it is easy to share a drive of documents, it can be difficult to ensure that confidential information doesn’t end up in the wrong hands. A document management virtual dataroom can be very helpful.
A virtual data room, or VDR, is an extremely secure online document repository and collaboration space https://affordableboard.com/document-management-best-practices-how-virtual-data-rooms-can-help-your-business that allows users to upload files, view high-quality previews, monitor the activity of their users, and share access with other users. The platform also comes with a variety of security features to safeguard against deletion and access that is not authorized, including two-factor authentication, a strict ID protocol, and a variety of adjustable permissions.
The majority of VDR providers offer a variety of tools that help streamline project workflows and help manage large files. They usually come with features that let you comment on documents and add digital signatures. They can also track versions of documents to show who made changes and when. This is essential in certain industries, such as real estate where lenders, buyers as well as financial institutions need to know the most recent version of a blueprint or contract.
Another feature that is useful in virtual datarooms for managing documents is the drag-and-drop feature. This allows you to upload whole collections of files folders or documents in huge quantities. They can also feature a labeling system to categorize files based on department or status (e.g., In Review, To Do, Approved). Some can also provide high-resolution previews as well as mobile access for increased convenience.