A virtual dataroom is a cloud-based system that allows multiple parties to access documents and communicate, and collaborate on projects without risking confidential information or losing the control of the document. They can be used to facilitate M&A, strategic and fundraising reviews as well as internal document sharing.

The best online data rooms allow for the control of access to data in a granular manner, as well as access settings, custom analytics secure storage, and digital watermarking of downloaded files. They also offer an intuitive user interface that makes collaboration easier. They also offer templates, and ways to make uploading easier.

An important feature is redaction, which blacks out parts of a document to ensure personally-identifiable information stays private. Certain VDRs also offer fence view that protects the document with the digital frame to avoid the taking of screenshots. Other features include two-factor authentication, IP and time access restrictions and datarooms a chat system that allows for real-time communications between users. They can be hosted by many companies, and they provide a variety pricing policies like pay-per-page and pay-per-user. They also offer an individualized experience for companies with unlimited users and high capacity.

A well-organized online data space can make investors feel confident that there won’t happen any unexpected surprises, which is essential in a deal process. It also shows investors that you’ve thought about the data you’d like to share, and that you’re committed to your business. This will increase your business’s value. Even if a company isn’t sure of how long it will take to close a deal, it is crucial to utilize an online dataroom while making plans for future deals or exits.