A secure data room is which houses data of a special nature. Its goal is to make it easier to exchange documents for legal procedures, M&A deals, etc. They are either physical or virtual. With the advancement of technology, virtual data rooms have become increasingly popular because they are economical, user-friendly and are equipped with a variety of security measures.
While cloud storage on its own can be a good option for non-confidential information but a virtual data room is the best option for sharing confidential documents such as due diligence documents in M&A deals and venture capital transactions. They are equipped with the security of a multi-level system, which includes encryption, dynamic watermarks to prevent unauthorised dissemination, and two-step verification to ensure access. In addition to these features, some online data rooms also provide activity reports that detail who accessed the file and when.
When choosing a provider ensure that they provide the following essential features:
Granular permission controls allow admins to assign the rights to download and view a document. An enhanced search function that can find complete and partial matches within documents and folders by using OCR filters, filters, and full text searches. Ability to upload all files in one folder and index them automatically, making them easier to find. Pop-ups with NDA terms that appear when a document is downloaded or viewed to verify that users are aware of the terms. The ability to create different groups and assign roles to them. Real-time translation of documents to eliminate barriers to language, which can hinder collaboration in global M&A deals.