What features should my virtual data room have?
Virtual data rooms have become increasingly popular over the past few years and the market doesn’t appear to be slowing down anytime soon. With big name companies and smaller ones constantly making the switch to a VDR program, it’s easy to see how the VDR market will continue to grow at increasing rates.
New VDR programs are being created all the time to help combat this high market area, but not all of them are created the same. Each has its own quirks and are tailored to different types of businesses.
Some VDRs are specifically designed to speed up due diligence and transactions with minimal waste of time waste, compared to the old fashioned ways of papers and filing cabinets. Having physical papers to manage this process takes many resources as well as valuable time. VDRs provide a place for teams to conduct due diligence, and at a fraction of the time and effort.
There are a lot of different benefits from using a VDR, and this article highlights a few of the innovative features you can get from a VDR.
In a world where more and more companies are going online and leaving less of a physical paper trail, it makes sense that security features should be a high priority.
Virtual data rooms are often used by companies for holding sensitive information. A leak of any of content could be catastrophic for businesses. Modern VDRs, such as DealRoom, understand how important it is to securely lock away sensitive and confidential papers, documents, and communication.
Because of this, there are several different security procedures in place to help store your important information including detailed file permissions. M&A virtual data rooms, like DealRoom, have four file permission options. You can set file permissions to view, download, download original and edit. If you don’t want something to be edited by another user, you can set it to view only and never need to worry about someone changing information on a document. Or if you don’t want a sensitive file to be downloadable, you can set the permissions so that no one has permission to take that file and save it to their own computer. This helps to prevent internal information leaks from team members.
You can also change the settings so that only select users have permission to view files and documents, which is perfect for when you have something you’d like to remain between an exclusive few.
Additional VDR security features to look out for includes strict ID protocol, two-factor authentication, encrypted and protected data, and customizable allowances.
2. Artificial Intelligence
With computers continuing to advance, it makes sense to have artificial intelligence. A business deal often involves a ton of paperwork, communication, and files being shared back and forth. Trying to keep everything organized on your own can get difficult. With artificial intelligence, you can make sure that no two documents are the same and that nothing is duplicated. This helps to ensure you aren’t wasting time looking for an original document.
When you’re typing and wanting to link a related file, artificial intelligence can be a great VDR feature to help you recall the exact file you’re thinking of and link it there for you. If you have a specific document or file that you are trying to remember but can only recall a portion of the text that was within it, you can use a full-text search feature to help you locate the exact item you were looking for.
One of the greatest features that come with a virtual data room is the ability to track everything. Many VDRs have the ability to track team members logging on and off, how much time was spent viewing a document and which document was viewed the most. And being able to see which documents your client viewed the most helps you to figure out what is most important to them. You can then use that information to help close the deal by catering to their wants and needs.
Tracking features also helps management get an overview of what team members are working on, and the status on their projects.
4. Drag and Drop File Upload
Many computer programs require you to upload documents one at a time. Luckily, most data rooms have adopted drag and drop file upload technology. Having the ability to drag and drop multiple files at a time is efficient and great for time management.
Some VDRs, like DealRoom, even offer auto-indexing which helps to keep everything organized. This makes it easy to find information, thereby making the due diligence process run efficiently and quickly.
5. Live Chatting
When businesses and team members can't be in the same room together or are spread out across the country or world, live chatting makes collaboration possible. Team members are able to send messages back and forth in real-time, which helps with version control issues.
Live chatting also provides a written chain of communication that team members can refer back to at a later date.
Deciding on a VDR Provider
When picking a VDR provider, you need to pick one that has all the features that you and your client need. Security, live chatting, drag and drop file upload, and tracking features are all important, but you need to also look into customer service options as well as price. You also need to consider what industry the platform was designed for specifically.