A secure virtual data room is a secure online repository for storing and sharing sensitive documentation in a secure environment. These solutions are essential to support complex projects as well as business processes that require disclosure of sensitive information to third parties outside the firewall of an organization. This includes the M&A process, litigation cases, due diligence for PE/VC investments as well as fundraising.

In contrast to the standard file sharing platforms like Google Drive or Dropbox, data rooms concentrate on security at both the document and system level. They rely on advanced encryption, both while in transit and while at rest, and multi-level authentication processes. They also provide features like watermarking, blind view, and printing disabled to avoid accidental disclosures.

Some VDR providers make bold claims about the security of their services, with terms such as’most secure information room virtual’ and a ‘highly secured data room.’ Any system that allows users to share login information or documents with people who are not authorized is not secure. Two-factor authentication isn’t enough to prevent this from happening, as a user can easily forward the second URL https://securevdronline.com/7-tips-to-keep-your-virtual-data-room-secure/ to anyone else.

You should look for an VDR provider that has ISO 27001 accreditation – this is the gold standard in information security management systems. Look for a VDR which provides precise activity tracking as well as granular permissions to let you know who has accessed which documents. This is especially important for M&A or fundraising processes because it will provide you with information about the level of interest that your shared files are generating among bidders.