A secure data room is used for housing data that are of a high-value nature. Its purpose is to facilitate the exchange of information for legal proceedings, M&A transactions, etc. They can be physically or virtual. However, due to the growth of technology, virtual data rooms are becoming increasingly popular because they are cost-effective, user-friendly and are equipped with a variety of security measures.

A virtual data room is the ideal option for sharing private documents, like due diligence documents used in M&A and venture capital deals. They have multi-level security systems that include encryption as well as dynamic watermarks to avoid the dissemination of information without authorization, and two-step verification to ensure access. Some data rooms on the internet offer reports on activity, which indicate who has accessed which files and the time they accessed it.

When choosing a provider ensure that they provide the following essential functionalities:

Granular permission controls that allow administrators to define specific downloading and viewing rights for each document. Search function improved to detect exact and partial matches in documents and folders using OCR, filters, and full-text searches. Upload all documents into a single folder, and then have them automatically indexed to make it easier to find. Pop-ups with NDA terms that appear when the document is downloaded, or viewed to ensure users accept the terms. The ability to establish different groups and assign roles. Real-time document translation in order to eliminate obstacles to translation that slow down collaboration processes in global M&A deals.