A secure virtual dataroom is an online repository that allows you to store and share sensitive documents in a safe setting. These specific solutions can be crucial in supporting complicated projects and processes that require the sharing of sensitive information with other parties that aren’t within the organization’s firewall. This includes the M&A process lawsuits, due diligence for PE/VC investments and fundraising.
Data rooms are distinct from the standard file-sharing services such as Google Drive or Dropbox because they focus on security at both the level of the file and system. They rely on advanced encryption in both in transit and at rest, as well as multi-level authentication methods. They also offer options like watermarking, blind view and printing that is disabled to prevent accidental disclosures.
Some VDR providers make huge claims about the security of their systems using terms such as ”most secure virtual data room and a highly secure data room’. Any system that allows users to share login information or documents with users who are not authorized is not secure. Two-factor authentication alone isn’t enough to prevent this from happening, as a user can easily forward the second URL to anyone else.
You should seek out the VDR that has ISO 27001 certification – it is the highest standard in information security management systems. Look for a VDR which offers detailed activity tracking, as well as granular authorizations that allow you to track who has accessed what documents. This is particularly important for M&A or fundraising processes since it provides you with information about the level of interest your shared files generate among bidders.
https://securevdronline.com/data-room-pricing-everything-you-need-to-know/