Data room confidential mode is a feature which allows administrators of virtual data rooms to limit a particular user’s use of the VDR by determining their IP address or the type of device. It is a valuable tool for M&A transactions as well as other delicate business ventures.

A good provider will permit users to create granular permissions, and also use two-factor authentication. They will also include a remote shred function which erases files downloaded after an administrator has removed access. They will also be able to handle the most popular file formats, including PDFs and XLSXs. The top providers can place watermarks to files that users download, which will discourage users from sharing copies the files online. They can also set a date for the expiration of files downloaded which will stop unauthorised downloading.

Other useful tools include redaction which allows administrators to eliminate (black out) portions of text or certain areas of a document from view of authorized users. This feature is crucial as it safeguards any personally identifiable information as well as crucial business data from hackers. The most reliable VDR providers can rewrite PDF documents, Doc, Docx PPTX, Txt, JPG, GIF, and Q&A files.

Some providers let users print out documents that will automatically include a „watermark” and even download the original version. In addition, a reliable provider will offer users an answer-question feature which helps them talk about files in the data room and keep answers in an easily searchable database. This can be extremely helpful for M&A deals or any due diligence project.