A virtual data room is an encrypted platform for sharing documents. It can virtual data room features be used to archive documents for a prolonged duration and lets users work on documents simultaneously. It comes with a range of security features, including password protection audit logs, the control of version control for files.

Typically, companies involved in M&A due diligence use a VDR. It is possible to share significant amounts of sensitive information with the other party and it is essential to be able to monitor who has accessed what information and when. A VDR with a solid retention and management system can help prevent data breaches, and it can swiftly revoke access to those who aren’t required to have it.

A powerful search engine is a crucial feature. It can locate information in large documents and display snippets from these documents when displaying results of the search. This allows users to quickly identify the correct files and open them. Another feature is a document annotation feature that lets multiple users add notes and comments to the same document, and it makes it easy to share annotations with others.

A great feature is the ability to quickly erase an image or paragraph from documents so that private information isn’t visible to anyone who does not need to view it. VDRs also allow for automatic watermarks to display the user’s name, IP address, and the date and time when a document was viewed or downloaded. This is especially useful if you need to adhere to regulations for compliance, such as HIPAA, GDPR, or CCPA.