Secure Virtual Data Room
A secure virtual dataroom is an online repository that allows you to store and share sensitive documents in a secure environment. These special solutions can be crucial in supporting complicated projects and processes that require sharing of confidential information with parties outside an organization’s firewall. This includes the M&A process lawsuits, due diligence for PE/VC investments as well as fundraising.
In contrast to the standard file sharing services, such as Google Drive or Dropbox, data rooms focus on security from both the document and system level. They rely on advanced encryption both in transit and at rest, and multi-level authentication procedures. They also offer features like watermarking, disabled print and blind view to avoid accidental disclosures.
Some VDR providers make bold claims regarding the security of their services, with terms such as’most secure information room virtual’ and a highly secured data room.’ Any system that allows users to share login information or documents with unauthorised users is not secure. Two-factor authentication isn’t enough to prevent this from happening as users can easily forward the second URL to others.
You should search for the VDR that has ISO 27001 certification – it is the gold standard in security management systems for information. Find a VDR that provides precise activity tracking as well as granular permissions that allow you to track who has accessed which documents. This is particularly crucial for M&A and fundraising processes as it can provide insight into the level of interest your shared documents are generating with bidders.
