A secure virtual dataroom is an online repository that allows you to save and share sensitive documents in a controlled environment. These solutions are essential to support complex projects and business processes that require disclosure of confidential information to other parties beyond an organization’s firewall. This includes the M&A process as well as litigation cases, due diligence for PE/VC investments, and fundraising.

In contrast to the standard file sharing services like Google Drive or Dropbox, data rooms concentrate on security from both the level of the system and at the document level. They rely upon advanced encryption both during transport and at rest, and multi-level authentication methods. They also offer features like watermarking, disabled print and blind view to avoid accidental disclosures.

Some VDR providers make bold claims regarding the security of their systems with terms such as’most secure information https://securevdronline.com/ room’ and highly secured data room.’ However, any system that allows authorized users to share login links or other documents with users who are not authorized is not secure. Even 2 factor authentication doesn’t stop this, because users can easily forward the second link to anyone else.

You should look for a VDR provider that is accredited with ISO 27001 accreditation – this is the gold standard in security management systems for information. You should also consider a system that offers detailed activity tracking and specific permissions to allow you to see the documents that are accessed by whom. This is particularly crucial for M&A or fundraising procedures, as it can provide you with insights into the level interest that your shared files are generating among bidders.