A secure dataroom is a place where confidential information can be stored. Its purpose is to facilitate the exchange of documents for legal proceedings, M&A transactions, etc. They are either physically or virtual. With the advancement of technology, virtual data rooms are becoming increasingly popular since they are economical, user-friendly and are backed by a variety of security measures.
While cloud storage in general can be suitable for non-confidential documents but a virtual data room is a great option for sharing confidential documents, especially due diligence files in M&A deals and venture capital transactions. They come with a multi-level security system including encryption, dynamic watermarks to prevent the dissemination of information without authorization, and two-step verification for access. Some online data rooms provide activity reports, which show who has accessed which files and when they did so.
When choosing a provider ensure that they provide the following essential features:
Granular permission controls allow admins to set the rights to download and view a document. Search function enhanced to find complete and partial matches within documents and folders using OCR filters, filters and full text searches. Upload all documents into one folder, and have them indexed automatically to make it easier to locate. Pop-ups with NDA terms that appear when the document is downloaded, or viewed to verify that users agree with the terms. The ability to create distinct groups and assign roles. Real-time translation of documents to remove language barriers that could hinder collaboration in global M&A deals.