A secure virtual dataroom is an online repository that allows you to save and share sensitive documents in a safe environment. These solutions are crucial in supporting complicated projects and processes that require sharing of confidential information with parties outside 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 both at the system and document level. They rely on advanced encryption both in transit and at rest and multi-level authentication techniques. They also offer features such watermarking, disabled print, and blind view in order to protect against accidental disclosures.
Some VDR providers make huge claims about the security of their systems using terms such as “most secure virtual data room’ and ‘highly secure data room’. The truth is that any system that allows authorized users to share login links or documents with users who are not authorized is not secure. Even 2 factor authentication doesn’t hinder this since a user could forward the second link to other users.
Choose a VDR provider that has ISO 27001 accreditation – this is the gold standard for information security management systems. Choose a VDR provider that provides precise activity tracking and granular access rights that allow you to track who https://securevdronline.com/the-complete-guide-to-egnyte-trusted-platform-services has accessed what documents. This is particularly important for M&A or fundraising processes since it provides you with insights into the level of interest that your shared files generate among bidders.