What is a Secure Data Room?

A secure dataroom is an online collaboration platform that speeds up due diligence, reduces timeframes for M&A and deal-making while providing ironclad safety. It enables buy-side and sell-side teams to manage the entire cycle of transactions from start to finish with confidence.

What sets a secure data room apart from file sharing sites like Dropbox is that it’s generally designed for the enterprise with the possibility of grouping users, set granular permissions and gain insight into usage through analytics (e.g. when, how and from where your data is being used). Many have additional features such as the ability to prevent downloading and copying (a major no-no) or even displaying documents on a screen that cannot be scanned. Many of them have the industry’s top encryption technology that allows for the scrambling of sensitive information and use multi-factor authentication to ensure it’s the person trying to log in and request access to the information.

Most secure data rooms also allow document download for offline viewing in PDF form. If you let users print these documents to physical printers, or allow them to save them to file drivers for other purposes they lose the protection that is provided to the original data within the virtual data room.

If you are able to download the files from a data room or another system and then open them without connecting https://getdataroom.com/reasons-for-of-usage-data-room-software/ to the Internet that is not what you want from the data room to store sensitive documents for M&A due-diligence and litigation compliance, and other sensitive documentation. The documents should be stored on devices, not transferred to servers. We recommend a DRM-based system that locks files onto devices, not servers. This makes it impossible for you to remove the files from devices and share them with others.

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