Online Data Room is a software platform for storing, sharing, and managing sensitive documents. It allows secure access to documents on any device and eliminates the requirement for physical meetings, thereby increasing efficiency and productivity. The best datarooms online are simple to use and offer features such as document tagging and customization, NDA support and more.

Due diligence is a necessary procedure for any business transaction, and requires the sharing of sensitive information with several parties. In the past, this was usually done using large files of paper that were easily lost or stolen. Nowadays virtual datarooms enable companies to conduct due diligence remotely, without putting themselves at risk for security or confidentiality security breaches.

The most frequent use of an online data room is to facilitate mergers and acquisitions. In this case buyers require access vast amounts of documents. A virtual dataroom makes it easier for buyers to look over documents, thus reducing the cost of the transaction by removing the need to travel to the seller’s office.

Many companies form strategic partnerships to produce products or services, to enter new markets or raise money. These partnerships typically involve contracts and require frequent document exchanges. A secure online data space can help companies share sensitive contracts their partners which allows them to collaborate quickly and efficiently while protecting intellectual property as well as other important information. Many data rooms keep track of the activities of each user in the room, giving administrators insight into how partners are working with the data files.