Secure Virtual Data Room

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

As opposed to generic 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 in transit and while at rest, and multi-level authentication methods. They also offer features like watermarking, disabled print, and blind view in order to avoid accidental disclosures.

Some VDR providers make bold claims regarding the security of their systems using terms such as’most secure data room virtual’ and a ‘highly secured data room.’ The reality is that any system that allows authorized users to share login links or documents with users who are click for more not authorized is not secure. Two-factor authentication isn’t enough to stop this, as a user can easily forward the second URL to anyone.

You should look for a VDR that has ISO 27001 certification – it is the gold standard in security management systems for information. You should also look for a system that offers precise activity tracking and the ability to grant granular access rights so that you can see what documents are being accessed by who. This is crucial for M&A and fundraising procedures as it can give you insights into the level of interest that your shared documents are generating with bidders.