A virtual dataroom (VDR) allows you to share information and documents in a safe environment. It is a popular tool in M&A transactions as well as due diligence, fundraising, and other high-risk business activities that require the sharing of confidential information between the parties.
In the past data rooms were utilized to achieve this. They were locked in a centrally controlled location and required a security guard to monitor access. However they are costly to maintain and do not have the features that make them an inefficient solution for modern-day companies.
Digital VDRs offer a centralized repository that is available on demand to authorized users. They also come with numerous security features that are standard like encryption and two-factor verification, as well as watermarking and audit logs. This means you can be assured that your data is secure from malicious activity.
When choosing a VDR provider, be sure to examine their track record and previous experience in providing online document management solutions that protect sensitive information. Be sure to consider how they comply with various industry compliance standards. For instance, HIPAA-certified companies ensure that protected health information is kept safe, while document security solutions companies that are certified under GDPR and CCPA are able to help companies conform to European privacy laws as well as California consumer protection laws.
Google Drive, Dropbox and Email can be useful to share files, but they aren’t the most appropriate options for sensitive information that requires the highest level of security. A reputable, reliable data room will help you streamline M&A transactions, due diligence processes, and other high-risk business projects while keeping your personal information secure and organized.
