What Are the Features of a Data Room?

A data room is an online repository that secures business documents and data. They can be used to conduct due-diligence during the process of selling, however, they can also be used for other reasons like sharing data with partners, customers, or investors.

Data rooms come in many different features however they all have some core features that are crucial to any company using them. These include the ability to share large files and then store them with different parties. Flexible search functions make it easy to locate documents, even when they are hidden in data. Secure data encryption is a crucial feature to have as it protects the data from accidental disclosure. To ensure that work is completed on time it is also beneficial to be able to control tasks. With the increasing use of remote and hybrid teams having the ability to access documents anywhere with an internet connection is essential.

It is also crucial to have the ability to erase information if documents have been shared with a third-party. A good data room should have an automated redaction tool that is user-friendly and can block out a single or a number of instances with the click of a button, instead of having to manually select and remove each instance. Finally, it is also useful to be able to monitor the activity within the data room, so that you can see who is looking at what and when.

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