A secure dataroom is a location where confidential data can be stored. Its purpose is to facilitate the exchange of documents in legal proceedings, M&A transactions, etc. They can be physically or virtual. Virtual data rooms are becoming more popular because of the advancement of technology. They are cost-effective, user-friendly, and come with a variety of security measures.
While standard cloud storage can be a good option for non-confidential information however, a virtual data space is an optimal solution for sharing confidential documents such as due diligence documents in M&A deals and venture capital transactions. They are equipped with multi-level security systems that include encryption and dynamic watermarks that prevent unauthorized dissemination, and two-step verification to ensure access. Some data rooms online offer activity reports, which show who accessed what file and when.
When choosing a service provider, ensure they offer these essential functionalities.
Permission controls that are flexible and allow administrators to set specific downloading and viewing rights for each document. An enhanced search function that can detect complete and partial matches within documents and folders using OCR filters, filters and full text searches. Ability to upload all documents into a single folder and index them automatically to make them easier to locate. NDA pop-ups which can be displayed on document download or browse to ensure users have agreed to the terms before they can access. The ability to create different groups and assign roles to them. Real-time document translation to remove language barriers that could slow down collaboration processes in global M&A deals.