Secure data rooms are an online repository that permits companies to share confidential business documents with external parties in a secure environment. It is used in a variety of commercial transactions, such as mergers and acquisitions, fundraising, IPOs, legal proceedings and other commercial activities where it is essential that third parties examine confidential documents without risking the company’s reputation to potential breaches and creating a compliancy issue.
Secure Data Room Features
The best virtual datarooms offer the latest security features that protect your sensitive information from malicious actors. These include features such as virus and intrusion prevention encryption of data (at both rest and in transit) as well as firewalls on the network and more, to ensure that your data is protected from cyber threats.
The ability to track and restrict access to the data room is one the most important aspects of a safe dataroom. This is critical since most data incidents are the result human error, such as clicking on an online link or downloading an article that contains personal details. A secure data room can avoid these kinds of mistakes by preventing downloads and providing activity reports and alerts.
Another popular feature is NDA gatekeeping. This permits companies to create a data room invitation with an unique NDA that expires within a predetermined timeframe. NDA gatekeeping makes it easy for companies to keep their information private while giving a potential investor or buyer to see a full data set and review the company’s capabilities.
