A virtual dataroom (VDR) allows you to share information and documents in a secure setting. It is a popular tool in M&A transactions as well as due diligence, fundraising and other high-risk business operations that require the transfer of confidential data between different parties.
In the past the data rooms were used to achieve this. They were secured in a centrally controlled location and required a security team to control access. However, these rooms are expensive to maintain and lack the features that make them an inefficient solution for modern-day businesses.
Digital VDRs are a central repository that is available to authorized users. They also come with a variety of security options that are industry-leading like encryption and two-factor authentication, as well as watermarking, and audit logs. This way, you can be assured that your data is protected from malicious activity.
When selecting the right VDR it is important to look at their track record and the experience of delivering online document-management solutions for sensitive information. Take note of how they meet industry compliance standards. For instance, HIPAA-certified businesses ensure that health information protected by HIPAA is stored securely, while GDPR- and CCPA-certified providers are able to help companies comply with European privacy laws and California consumer protection laws.
Google Drive, Dropbox and Email are all great for sharing files, but aren’t the most appropriate options for sensitive data that requires a high level of privacy. A reputable, reliable data room can streamline M&A transactions, due diligence processes, as well as other high-risk business initiatives while keeping your private information secure and well-organized.