Secure Virtual Data Room

A secure virtual dataroom is a repository online that allows you to save and share sensitive documents in a secure setting. These specialized solutions can be essential in assisting with complex projects and processes that require sharing of confidential information with individuals that aren’t within the organization’s firewall. This includes the M&A process lawsuits, due diligence for PE/VC investments as well as fundraising.

Data rooms are different from standard file-sharing applications like Google Drive or Dropbox because they are focused on security both at the document and system level. They rely on advanced encryption during both in transit and at rest, as well as multi-level authentication methods. They also provide options like watermarking, blind view and printing disabled to guard against accidental disclosures.

Some VDR providers make huge claims about how secure their systems are using terms such as ‘most secure virtual data room 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 is not secure. Two-factor authentication isn’t enough to stop this, as a user can easily forward the second URL to anyone.

Look for an VDR provider that is accredited with ISO 27001 accreditation – this is the highest standard for information security management systems. Choose a VDR provider the complete guide to egnyte trusted platform services that provides detailed activity tracking, and granular access rights to allow you to see who has accessed what documents. This is particularly crucial for M&A and fundraising processes as it can provide insight into the level of interest that the shared documents generate with bidders.