A secure virtual data room is an online repository for storing and sharing sensitive information in a controlled environment. These special solutions can be vital in supporting complex projects and processes that require sharing of sensitive information with people outside the firewall of an organization. This includes https://securevdronline.com/7-tips-to-keep-your-virtual-data-room-secure/ the M&A litigation, due diligence required for PE/VC investment and fundraising.
Unlike generic file sharing services such as Google Drive or Dropbox, data rooms are focused on security at the level of the system and at the document level. They rely on advanced encryption both in transit and while at rest, and multi-level authentication processes. They also offer features like watermarking, blind view and printing that is disabled to avoid accidental disclosures.
Some VDR providers make huge claims about how secure their systems are by using terms like “most secure virtual space’ and ‘highly secure data room’. In reality, any system that allows authorized users to share login links or documents with non-authorized users is not secure. Even two-factor authentication isn’t enough to prevent this from happening since a user is able to easily forward the second URL to others.
Look for a VDR provider that has ISO 27001 accreditation – this is the gold standard in information security management systems. Look for a VDR which provides detailed activity tracking, as well as granular access permissions that allow you to track who has accessed which documents. This is especially important for M&A and fundraising as it provides you with insight into the level of interest that your shared documents are generating with bidders.
