A secure virtual data room is an online repository for storing and sharing sensitive documentation in a controlled setting. These specific solutions are essential to support complex projects and business processes that require disclosure of confidential information to parties beyond an organization’s firewall. This includes M&A litigation, due diligence of PE/VC investments and fundraising.
Data rooms are different from standard file-sharing applications like Google Drive or Dropbox because they are focused on security at both the level of the document and at the system. They rely on advanced encryption during both in transit and at rest, as well as multi-level authentication processes. They also provide options such as watermarking disabled printing and blind view to avoid accidental disclosures.
Some VDR providers make huge claims about how secure their systems are using terms such as “the most secure virtual data room and a highly secure data room’. Any system that allows users to share login information or documents with unauthorised users is not secure. Even two-factor authentication isn’t enough to prevent this as users can easily forward the second URL to others.
You should seek out a VDR that has ISO 27001 certification – it is the gold standard of information security management systems. Look for a VDR that offers detailed activity tracking, as well as granular authorizations that let you see who has accessed which documents. This is particularly important for M&A or fundraising processes because it will provide you with an understanding of the level of interest that your shared https://securevdronline.com files are generating among bidders.