Virtual data rooms are available in various types and each one is suited to specific business needs. Virtual data rooms are often employed for M&A due diligence, but they can also be utilized for fundraising, legal projects and other high-risk business processes which require secure, confidential document management.
The most reliable VDR platforms are designed to provide a flexible and scalable framework for managing sensitive data. They usually have a central dashboard with an organization system that is similar to the physical file system. This makes it easy for users and other stakeholders to categorize documents. This is particularly important if there are multiple parties accessing the data room simultaneously. It is also essential to have advanced search functionality that lets users quickly find the documents they require without having to wade through endless paperwork.
Another crucial aspect of a successful virtual data room are collaboration tools that allow sharing and commenting. This allows stakeholders to provide feedback on any document and to share their concerns directly with other parties, while keeping the negotiation process moving forward. Most quality platforms also have annotation tools that permit users to take notes on documents they’re reading. However the other party won’t be able to see these notes.
In terms of VDR types the red data rooms are designed to be used to handle processes that require deep confidentiality, whereas green data rooms balance security with the possibility of more broad access. The former is utilized in M&A due diligence, whereas the latter is a more common tool used in the legal as well as healthcare and real estate.
http://www.dataroomspace.net/main-types-of-data-rooms-with-examples/