A secure virtual dataroom is an online repository which allows you to store and share sensitive documents within a protected environment. These solutions are vital in supporting complex projects and processes https://securevdronline.com/ that require the sharing of confidential information with parties outside an organization’s firewall. This includes the M&A litigation, due diligence for PE/VC investments and fundraising.
Data rooms are different from other file-sharing platforms like Google Drive or Dropbox because they are focused on security at both the level of the file and system. They rely upon advanced encryption both in transit and at rest, and multi-level authentication processes. They also offer features like watermarking, disabled print and blind view in order to stop accidental disclosures.
Some VDR providers make big claims about how secure their systems are using terms such as “most secure virtual space and a highly secure data room’. However, any system that allows authorized users to share login links or documents with non-authorized users is not secure. Even 2-factor authentication doesn’t stop this from happening because users can easily forward the second link to other users.
You should look for an VDR that has ISO 27001 certification – it is the gold standard in information security management systems. Look for a VDR that provides precise activity tracking as well as granular access permissions to let you know who has accessed which documents. This is especially important for M&A or fundraising activities, since it provides you with an understanding of the level interest that your shared files generate among bidders.