A secure virtual data room is a secure online repository that allows for the storage and sharing sensitive information in a controlled setting. These special solutions can be essential in assisting with complex projects and processes that require the sharing of sensitive information with people outside the firewall of an organization. This includes M&A and litigation www.securevdronline.com/data-room-pricing-everything-you-need-to-know/ processes, as well as due diligence of 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 level of the file and system. They rely on advanced encryption, both while during transport and at rest, as well as multi-level authentication methods. They also offer features such watermarking, disabled print, and blind view to avoid accidental disclosures.
Some VDR providers make big claims about the security of their systems using terms such as “most secure virtual space and a highly secure data room’. The truth is that any system that allows authorized users to share login links or documents with non-authorized users isn’t secure. Two-factor authentication isn’t enough to stop this as users can easily forward the second URL to anyone.
You should seek out the VDR that is certified with ISO 27001 certification – it is the gold standard for information security management systems. Look for a VDR that provides detailed activity tracking, as well as granular permissions to allow you to see who has accessed what documents. This is particularly crucial for M&A or fundraising processes since it provides you with an understanding of the level of interest your shared files are generating among bidders.