Traditionally, when companies have to present their documentation for a project, such as an acquisition or IPO, they have been sending investors over to examine the documents in a physical data room. However, this kind of transaction demands a lot of work for all people involved, particularly when there are hundreds of pages and files to be reviewed. This is the reason why more and more companies are choosing to utilize virtual data rooms to document their documents.

Online data room software lets users collaborate in real-time on documents and projects. Users can also access documents on the go using an app. They also have a lot of control over their rights and can restrict or grant specific access levels to documents, based on their job. Online data rooms allow users to create digital watermarks that appear on all files that are printed, viewed or downloaded.

Data room administrators are able to track who has opened what file, when, and for how long. It also helps stop data breaches by providing online data rooms advanced features a secure location for the exchange of documents. Another feature that is highly advanced is redaction. This tool is very useful if you want to redact images, text or particular parts of a file. Some VDRs provide this functionality in a variety of formats such as PDF, Doc or txt. Others include ppt, txt images and jpg. Another feature is Q&A reporting, which allows you to keep track of all the questions and answers during a virtual data room project.