What Is a Secure Data Room?

www.joindataroom.com/what-is-a-secure-data-room-advantages-of-using/

A secure data room is a cloud-based solution specifically designed for the purpose of storing and sharing confidential business data with access control. Virtual data rooms are the latest equivalent of physical rooms in which hard copies of documents were reviewed during negotiations for buying and selling. They also provide advanced security features including encryption technology, as well as other advanced features.

Secure virtual datarooms are designed on the same basis as personal file storage and sharing solutions like Dropbox or Google Drive but with a significantly higher level of security protection. Data and documents are secured as they are transferred to the cloud, shared in a virtual space and stored on the server. They are therefore much more secure than other file-sharing and storage tools that depend on passwords or plugins to limit access to certain devices and locations.

In addition to basic accessibility (on any device and from wherever you are) A data room will typically include collaboration capabilities, e.g. Chat and group messaging, which can be used to improve due diligence processes. They are likely to include audit trails of every activity performed by users so that any breach can be tracked and traced to their source.

The majority of data rooms were created to support due diligence in a merger or purchase deal. Both parties can access the information in order to conduct an exhaustive analysis. They are also becoming popular for other M&A activities such as fundraising, restructuring, and divestitures. They are also used to share and review documents in teams with the additional benefit of offering more secure encryption protection than conventional email.