A virtual dataroom (VDR) allows you to share information and documents in a secure setting. It is often used in M&A deals due diligence, fundraising and other high-risk activities that require the sharing of sensitive information between parties.
In the past physical data rooms were used to store data. They were secured in a central area that was monitored by security personnel to control access. The rooms are expensive to keep up and lack many features making them a bad solution for modern businesses.
Digital VDRs are a central repository that can be accessed by authorized users on request. They also come with numerous security features that are standard such as encryption two-factor verification, audit logs and watermarking. This means you can be confident that your information is secure from unauthorized access.
When choosing the right VDR when choosing a VDR, you must take a look at their history and experience of delivering online document-management solutions for sensitive information. Also, you should consider how they comply with different industry standards of compliance. HIPAA-certified businesses ensure that health information is secure stored, while GDPR and CCPA certified providers can assist businesses comply with European privacy laws as well as California consumer protection laws.
Google Drive, Dropbox and Email may be useful for sharing files, but aren’t the best choices for sensitive information requiring a high level of security. A reliable data room can assist in streamlining M&A deals due diligence, as well as other high-risk projects, all while keeping your personal information protected and well-organized.
