A virtual data room (VDR) is an secure repository for sharing documents and information. It is often used in M&A deals, due diligence, fundraising, and other high-risk transactions which require sharing confidential information between the parties.
In the past, data rooms were used to achieve this. They were locked up in a central area that was monitored by a team of security to monitor access. However, these rooms are expensive to maintain and do not have the features which make them a poor solution for modern-day companies.
Digital VDRs are a central repository that is accessible on-demand to authorized users. They also include several security features that are standard, such as encryption two-factor verification, watermarking and audit logs. You can be sure that your data will not be compromised by malicious activity.
When selecting a VDR You should examine their track record and knowledge of delivering online document-management solutions for the protection of confidential information. Check out how they are able to meet various industry compliance standards. For instance, HIPAA-certified businesses ensure that health information protected by HIPAA is kept safe, while those certified under GDPR and CCPA are able to help companies comply with European privacy laws as well as California consumer protection laws.
A variety of tools, including Google Drive, Dropbox, and Email can be useful for daily file sharing, but they’re not the best choice for sharing and storing sensitive information that requires a high level of privacy. A reputable, reliable data room will help you streamline M&A transactions as well as due diligence processes and other business ventures that require high stakes while keeping your private information secure and well-organized.
