Secure Virtual Data Room

A secure virtual dataroom is a repository online that lets you store and share sensitive documents within a protected setting. These solutions are essential in assisting with complex projects and processes that require sharing of sensitive information with people who are not within the firewall of an organization. This includes the M&A process as well as litigation cases, due diligence for PE/VC investments, and fundraising.

Data rooms are different from standard file-sharing applications like Google Drive or Dropbox because they focus on security at both the level of the document and at the system. They rely on advanced encryption both in the process and at rest as well as multi-level authentication procedures. They also offer features such watermarking, disabled print, and blind view to avoid accidental disclosures.

Some VDR providers make bold claims about how secure their systems are – using terms such as ‘most secure virtual data room’ and ‘highly secure data room’. The reality is that any system that allows authorized users to share login links or documents with users who are not authorized is not secure. Even www.securevdronline.com/data-room-pricing-everything-you-need-to-know/ 2-factor authentication doesn’t hinder this because users can easily forward the second link to others.

You should look for a VDR that has ISO 27001 certification – it is the gold standard for security management systems for information. Look for a VDR that has detailed activity tracking, and granular access rights that allow you to track who has accessed what documents. This is particularly important for M&A and fundraising processes as it will provide you with insights into the level of interest that your shared documents are generating with bidders.