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Optical character recognition (OCR)

The short version

Software that reads the text inside scanned documents and images, so a data room can search them like ordinary text files.

How it plays out on a deal

Older contracts, signed agreements and board minutes often enter a room as scans. Without OCR they are pictures: search ignores them and readers have to open each one to know what it is. On a large set that adds days of reading.

Rooms vary in whether OCR runs automatically, which languages it handles and whether it covers images embedded in PDFs. Quality matters too, since a poor scan can produce text full of errors that search will miss. The practical check is to upload a few real scans and search for a phrase that appears in them.

What to check in a review or demo

  1. 1Whether OCR runs on upload automatically or must be requested per file.
  2. 2Which languages are supported, if the deal includes documents not in English.
  3. 3Whether a phrase from a scanned contract shows up in search results within minutes of upload.

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Where this comes up on Data Room Review