What is a Secure Data Room?

Frequently Asked Questions

What is a secure information room? A virtual data room is a cloud-based solution specifically designed to secure the storage and sharing of sensitive documents used in business. These services allow businesses to simplify great site workflows and enhance due diligence processes by automating document management and granting the ability to control access to documents in a granular manner. Typically, companies use data rooms for M&A transactions, IPOs, real estate asset lifecycle management, and other projects that require a secure collaboration and document storage.

Typically businesses use a data room to share security documents, such as certifications, patents and other information on compliance to potential buyers or business partners to conduct due diligence. Typically the information is sent via email, which leaves your company at risk of being hacked credentials, phishing scams and other dangers. You can upload your due diligence documents and control who can access them and the time they view them.

Find a service that has features such as multi-factor authentication and dynamic watermarking. Also, consider fence view, comprehensive tracking and redaction. These help ensure that your sensitive data remains private. Choose a data room that supports the most common file formats, like Microsoft Office and PDF, which means you can upload all of your documents that you have purchased.

A secure data room should have an intuitive, user-friendly interface that will improve collaboration and enable employees to work more efficiently. Look for providers with features such as a Q&A tool, a mobile app that is downloadable, and a unified dashboard to ensure everyone is on same page.