A virtual dataroom (VDR) allows you to share information and documents in a secure environment. It is used in M&A deals due diligence, fundraising and other high-stakes activities which require sharing sensitive information between parties.
In the past physical data rooms were used to store data. They were kept in a central area that was monitored and required security personnel to supervise access. However they are costly to maintain and lack a range of features that make them an inefficient solution for modern-day companies.
Digital VDRs are a central repository that is available on demand to authorized users. They also include a variety of security features that are industry-standard like encryption two-factor verification, audit logs and watermarking. This means that you can rest assured that your data is safe from unauthorized access.
When selecting a VDR You should examine their track record and experience of providing online document management solutions that protect confidential information. Also, you should consider how they support different industry compliance standards. HIPAA-certified companies ensure that health information is secure stored, while GDPR and CCPA certified providers can help companies adhere to European privacy laws as well as California consumer protection laws.
Many tools like Google Drive, Dropbox, and Email are useful for everyday file sharing, however they are not the best choice for sharing and storing sensitive information that requires a certain degree of privacy. A reputable, reliable data room will help you streamline M&A transactions and due diligence processes and other high-risk business projects while keeping your confidential information secure and well-organized.