Traditionally companies have sent investors to an data room to go over the files of a particular project, such as an acquisition or IPO. But this type of deal requires a huge amount of work for all parties involved, especially if there are hundreds of pages and documents to review. This is the reason why more companies are choosing to use virtual data rooms in order to present their documentation.

With the help of online data room software users can collaborate on documents and projects in real time. Users can even access documents from anywhere using an application. They can also control their rights by giving or restricting specific access levels to documents based on their role. Furthermore online data rooms allow them to include digital watermarks that appear on any document that is downloaded, viewed or printed.

Data room administrators are able to keep track of who visited what file, when, and for how long. It also helps prevent data breaches, by providing a secure area for the storage and exchange of documents. Another feature that is highly advanced is redaction. This tool is very useful for those who want to remove images, text or specific parts of a file. Some VDRs provide this functionality in a number of formats which include PDF, Doc and txt. Other formats include ppt, txt, images, and jpg. Q&A reporting is another feature that lets you keep a records of all questions as well as answers within a virtual dataroom.