Essential features a Virtual Data Room Should Have

A virtual data room is an ideal cloud-based platform designed to organize, store and secure file sharing of data and confidential business-sensitive documents with third parties during due diligence for M&A, partnering fundraising, and asset sales. But it is a fact, that not all data rooms are created equal. So when you are looking out for a virtual data room, look for one that provides the highest level of features and functionality. A good data room service provider always provides the following essential features:
An Investor Data Room That’s Easy-To-Use

Although this might sound obvious, several data room service providers complicate their data room software with irrelevant features that you don’t need and convoluted processes. A good virtual data room should be user-friendly and require very limited training.
Allow Complete Document Control
A good investor data room enables gives you the capability to secure and control your sensitive business data and documents while sharing them with third parties. It does this by providing you with enterprise-grade security, even on computers and devices that are outside the control of a firm’s IT department. This state-of-the-art security technology should be applied uniformly, regardless of whether documents are viewed on Windows, Macs, or iOS devices.

Let you Organize Content and Present it Effectively
A good data room M& A enables you to present your documents easily in an organized, structured, attractive, and professional manner, by facilitating efficient and rapid review on all devices. Your virtual data room should allow you the additional flexibility to organize documents with tags rather than merely with a folder structure. 

 Should have state-of-the-art security features such as:
• Document watermarks: Custom watermarks give the date and name of the person who downloaded the document. This helps to avoid information leaks.
• Self-destructing documents: This feature allows you to revoke access to documents at any moment.
• 256-bit AES SSL encryption: This is the highest standard of data encryption to protect data while being transmitted to and from the virtual data room and even when stored within it.
• Control Document Access with Restrictions: This feature enables you to choose which documents are allowed to be downloaded, printed, edited, or shared. You can even customize the different levels of document protection.

• Back-up of Data: A good data room service provider gives you another layer of document security by giving you an auto backup of all data so that nothing can be completely lost or destroyed if any untoward incident or natural calamity happens.
  • Virus Scanning: With the large volume of documents being uploaded to your data room M&A, it’s important to have the data scanned for viruses. A good quality investor data room won’t allow any defective files to be uploaded.
  • On Save/On Open Encryption: Open encryption automatically encrypts your data and documents when you open them to prevent any unauthorized access. On-save encryption guarantees that your documents are protected even during storage and remain unreadable to unauthorized persons.

Data center security features:
• SOC 2 Certification: This describes the best internal methods to verify the security, availability, and privacy of your data room software.
• ISO 27001 Certification: Guarantees proper controls and prevents security threats or vulnerabilities.
• SSAE 16 Certification: These certifications are mostly needed for data room M&A. SSAE 16 certification means that the data room is compliant with the standards supporting the Sarbanes-Oxley (SOX) Act. This is one of the strictest standards and requires an audit of internal controls over financial reporting. 

• Data Center Security. This means employing physical security at the data center sites.
  Access security:
  • Any device mobile access: Gives you the option to work with your secured documents from any geographical location in the world, on any device be it mobile, desktop, laptop, or iPad.
  • Multi-step verification: When users log in from a new device, an investor data room does a multiple-step verification process that ensures that the virtual data room isn’t being hacked.
  • Granular access control: This feature allows you to control who can view a document based on their job or role in the organization.
• Two-Factor Authentication: This feature of a virtual data room provides another level of protection by letting users log in using a password and a unique code sent directly to their cell phones.
  Usability features:
  • Bulk uploads: Virtual data room facilitates bulk uploads thereby speeding up the time spent importing and exporting files by allowing you to do multiple documents and folders at once.
  • Drag and drop function: This feature lets you grab files from your computer or device and drop them into the data room so that they upload them automatically.
• Advanced text search: This feature of a data room M&A gives you the ability to search through all of the documents, files, and folders in your virtual data room with just a few specific keywords. This helps immensely when you don’t remember the specific name of a document or file.
  • Document linking: This feature lets you link documents together and share content with other authorized users.
  • Microsoft Office integration: This feature enables users to access and store files from Word, Excel, and PowerPoint in their secure VDR.
  • Q&A section: This feature lets users ask and answer questions.
  • Scroll-through document viewer: This feature allows you to scroll through documents in a folder while keeping another document open. This saves time when you are examining multiple documents.

Accessibility features:
• iPad, iPhones, smartphones, tablets: A virtual data room lets you work on popular devices like mobiles, tablets, iPads, etc.
• Supports Multiple-devices: A virtual data room lets you access it with any device, be it iOS, Android, Blackberry, and Windows.
• Multi-lingual support: A good data room service provider allows users from anywhere worldwide to seamlessly communicate in their native or regional language. All documents are indexed appropriately irrespective of the language.
• No plugins needed: A good data room should be a complete one-stop-shop and should not need any extra or additional downloaded plugins to accomplish its tasks.

SERVICE & SUPPORT
A good virtual data room should be easy to set up, user-friendly, and require very little training. Moreover, it should also offer unparalleled 24/7 support when the need arises
• Appoint a dedicated project manager that will not only help with setting up your data room but also offer expertise on how to streamline your project
• Should receive training customized to the specific requirements of your application
• Offer 24/7/365 telephone support
• Support remote screen sharing to expedite the resolution of any issues and glitches
• Support should include the migration from other VDRs or file-sharing systemsConclusion
A virtual data room has proved to be one of the most essential tools for facilitating online storage, and secure file sharing of confidential data and documents during deal transactions and other business applications. So it’s always wise to choose the right virtual data room service provider that offers the most advanced technology and functionality features required by you to efficiently streamline your deal and business process and assure deal success without any compromises.