A secure virtual dataroom is a repository online that lets you store and share sensitive documents in a controlled setting. These solutions are essential to support complex projects and business processes that require the disclosure of confidential information to other parties beyond the firewall of an organization. This includes M&A, litigation, due diligence required for PE/VC investment and fundraising.

Data rooms are distinct from generic file-sharing services like Google Drive or Dropbox because they focus on security at the level of the document and at the system. They rely on advanced encryption, both while during transport and at rest, and multi-level authentication processes. They also provide features such as watermarking, disabled print and blind view to stop accidental disclosures.

Some VDR providers make bold claims regarding the security of their systems, using terms like’most secure data room virtual’ or ‘highly secured data room.’ The truth is that any system that allows authorized users to share login links or documents with non-authorized users is not secure. Two-factor authentication isn’t enough to stop this since a user is able to easily forward the second URL to anyone.

You should search for the VDR that has ISO 27001 certification – it is the highest standard in security management systems for information. Find a VDR that offers detailed activity tracking, and granular access rights that let you see who has accessed which documents. This is especially important for M&A or fundraising activities, since it provides you with insight into the level of interest that your shared files are generating among bidders.

https://securevdronline.com/data-room-pricing-everything-you-need-to-know/