A virtual data room (VDR) is a secure storage space for sharing documents and information. It is utilized in M&A deals due diligence, fundraising and other high-stakes activities that require the sharing of confidential information between parties.
In the past, physical data rooms were utilized to store data. They were kept in a central location, which was monitored and required security personnel to monitor access. However these rooms are costly to maintain and lack a range of features that make them an inefficient solution for modern companies.
Digital VDRs offer a central repository which can be accessible by authorized users on request. They also include a range of security options that are industry-leading like encryption, two-factor authentication, watermarking and audit logs. This means you can rest assured that your data is protected from malicious activities.
When choosing a VDR provider, it is important to look into their track record and experience in delivering online document management solutions to protect private information. You should also think about how they comply with different industry standards of compliance. For example, HIPAA-certified businesses ensure that protected health information is protected and stored in a secure manner, whereas the GDPR- and CCPA-certified companies can assist companies comply with European privacy laws and California consumer protection laws.
Google Drive, Dropbox and Email may be useful to share files, but they aren’t the most appropriate options for sensitive information that requires a high level of privacy. A reliable data room can aid in streamlined M&A deals as well as due diligence and other high-risk projects, while keeping your confidential information secured and well-organized.