A secure virtual dataroom is a repository online which allows you to store and share sensitive documents in a controlled environment. These specialized solutions are vital to support complex projects and business processes that require disclosure of confidential information to parties outside the firewall of an organization. This includes the M&A litigation, due diligence of PE/VC investments and fundraising.
Data rooms are distinct from other file-sharing platforms like https://securevdronline.com/data-room-pricing-everything-you-need-to-know/ Google Drive or Dropbox because they are focused on security at both the level of the document and at the system. They rely upon advanced encryption in transit and at rest, as well as multi-level authentication techniques. They also offer features such as watermarking, disabled print, and blind view to stop accidental disclosures.
Some VDR providers make bold claims regarding the security of their system, with terms such as’most secure information room virtual’ or highly secured data room.’ Any system that allows users to share login details or documents with unauthorised users is not secure. Even two-factor authentication isn’t enough to stop this because a user could easily forward the second URL to other users.
You should look for an VDR that has ISO 27001 certification – it is the highest standard in information security management systems. You should also consider a system that provides detailed activity tracking as well as the ability to grant granular access rights so that you can track which documents are accessed by who. This is particularly important for M&A or fundraising activities, as it can provide you with an understanding of the level of interest that your shared files are generating among bidders.