The Best VDR Features You Never Knew You Needed Until Now

November 28, 2023

In the early 2000s, a virtual data room offered a basic platform for M&A, which was sometimes expensive and limited in capability. Today, it's an advanced feature-rich product for businesses across industries, whose market is expected to grow to US$ 3,596.3 million by 2028. So, the evolution of data room functionality, from basic document storage to AI-powered workspaces, has been incredible.

For our post, we have selected the unique features that virtual data rooms offer today after over 20 years of evolution! Why do you need to know about them? These functions may serve as a starting point for choosing a provider!

Top 5 unique data room features

After exhaustively researching the best data rooms, we compiled the following list of features that you might not know about:

1. User security impersonation

This tool eliminates the human factor when setting access permissions to data rooms for other users. This way, you can see workspaces from any person's perspective, ensuring they only see what they need according to their roles and tasks.

Feature use cases:

  • Ensuring proper access rights
  • Troubleshooting user-specific problems
  • Performing system checks

Tip: Check for this feature when choosing a due diligence virtual data room. As is known, M&A due diligence involves multiple parties, but user security impersonation helps ensure your data is secure!

2. Secure fence view

A fence view protects sensitive data from prying eyes by providing a restricted viewing mode. So, the user sees only part of the content, while the rest is covered with a sliding barred screen. Moreover, some providers have a fence view as an access level, which means you, as an admin, can only allow other users to view the document in this restricted viewing mode.

Feature use cases:

  • Controlling access to documents that require a high level of security
  • Protecting proprietary information from unauthorized access
  • Ensuring compliance with data protection and privacy regulations

Note: Follow the link https://www.idealsvdr.com/virtual-data-room-features/ to find out what other unique features the provider with secure fence view offers.

3. Bulk redaction

Bulk redaction sometimes allows you to redact up to 500 files at a time with automatic AI pattern recognition and the ability to select over 30 custom terms to redact at once. Furthermore, you can preview the redacted documents and make changes.

Feature use cases:

  • Protect sensitive information in an M&A data room before sharing it internally or externally
  • Removing sensitive information before sharing documents during legal proceedings
  • Securing patient privacy and complying with healthcare regulations

4. Bidder engagement score

A bidder engagement score generated by AI is a valuable tool that can predict the transaction outcome with an accuracy rate of over 90%. This data is highly reliable as it is trained on tens of thousands of transactions. The main advantage of this feature is that you can make informed decisions based on data analysis.

Feature use cases:

  • Assessing the level of interest and engagement from potential vendors
  • Gauging market interest and making strategic decisions
  • Identifying projects that demonstrate strong engagement

5. ESG reporting

With about 89% of investors incorporating ESG issues into their investment strategies in 2022, ESG reporting may become a pressing issue for companies. Luckily, some vendors generate meaningful ESG reports providing information in a structured and easy-to-view manner. This way, complying with ESG standards and being transparent to investors improves your chances of success.

Feature use cases:

  • Managing reputational risks
  • Demonstrating a commitment to sustainable business practices
  • Assess the impact of business activities on the environment and society

If you need a virtual data room to enhance your deal or daily workflows with the features above, check out virtual data room reviews and official provider websites!

Is it OK to use a data room that doesn't have these features available?

The ideal data room for you is the one that 100% meets your needs, period.

For example, suppose you are a small business with minimal environmental impact and a local scope that needs a virtual data room for startups. In that case, you may face different scrutiny or expectations regarding ESG reporting than giant corporations with global operations. Therefore, data rooms with this feature are optional for you.

Also, you can be a non-profit organization focused on social impact rather than financial operations. In this case, the bidder engagement score is unnecessary for you, unlike those who use the data room for investors.

Finally, data protection can't be optional whether you are a startup or a world-known corporation. The commitment of your customers, investor relations, the life of your organization, and many other things depend on data security. Therefore, always choose the data room software with the most comprehensive security features available.

Final thoughts

As you can see, the unique features of data rooms are not a must but rather optional strategic tools that can be helpful depending on your business context. However, data security remains at the core of any business workflow or transaction. So, always pay attention to the provider's security mechanisms!

 

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