Online data rooms are a user-friendly, secure platform for sharing and co-working sensitive documents. They are used in a variety of projects that require high security and privacy like M&A transactions such as venture capital and private equity financings as well as loan syndication and lending, as well as due diligence and litigation support.

Online deal rooms are a great tool to use for M&A due-diligence, where both the sell-side and buy-side have to prepare and review a large volume of documents. The paperless board meeting ability to keep all the documentation all in one place and secured, allows both parties to make quick decisions. It can also lower the chance that a deal will fail because of the disclosure of sensitive information.

To safeguard sensitive data, the majority of virtual data rooms have restricted document permissions that permit administrators to establish access policies for every folder and file in the repository. They can also enable redaction, fence view (which blacks out certain areas of files to ensure personally-identifiable data stays private) and prevent screenshotting. The majority of VDRs also have security certifications that prove their reliability. They include ISO 27001 and SOC 1/2/3.

Another advantage of online deal rooms is that they allow for a seamless integration with existing systems and tools via APIs. This makes them compatible to a variety of popular applications and programs, including Microsoft Office, email and chat apps. This improves workflow, enhances communication and collaboration. Furthermore, many deal rooms offer 24-hour support through multiple channels and offer various training videos to assist users in establishing their accounts.