Online data rooms are cutting-edge software designed to facilitate the secure sharing of documents in different business processes. They include M&A, real estate and legal transactions as well as clinical studies, among others. The market is flooded with vendors who basics are willing to assist companies with their data room requirements. Some of the most well-known solutions are iDeals, Citrix and Datasite.

The most effective virtual data rooms are easy to use, give users with granular permissions and allow the use of advanced features like AI redaction optical character recognition search filters and auto indexing, as well as dynamic watermarking, file siloing within private cloud servers and multi-factor authentication. The ability to customize the data room to your specific requirements and the option to create and edit a due-diligence checklist are also important. Additionally, the most effective virtual data rooms have a client manager, which simplifies the process of establishing and administration of the data room.

The best online data rooms will also provide the possibility to organize documents into folder structures based on the subject matter of each folder. The system will then number and index the files for you. This lets you find documents in seconds and reduces time spent on data entry. Drag-and-drop, bulk uploads, the speedy and accurate search engine, a Q&A module for organization and structure during a due diligence phase and the possibility to create access hierarchies based on the individual user and group are all beneficial features. Activity reports and a customizable dashboard are important for monitoring the use of documents.