A secure data room is a place where data is stored of a special nature. Its purpose to facilitate the exchange of documents needed for legal proceedings, M&A deals, etc. They can be physical or virtual. However, with the development of technology virtual data rooms have become increasingly popular since they are cost efficient, user friendly and come equipped with multiple security measures.

While standard cloud storage may be a good option for non-confidential information but a virtual data room is a perfect solution to share confidential files particularly due diligence files in M&A deals and venture capital transactions. They are equipped with a multi-level security system including encryption, dynamic watermarks to prevent any unauthorized dissemination, as well as two-step verification to ensure access. Some online data rooms provide activity reports, which reveal who accessed the file and when.

When choosing a provider be sure that they have the following essential functionalities:

Granular permission controls what is a secure data room that permit admins to set specific downloading and viewing rights for each document. Enhanced search function that can find exact and partial matches in folders and documents with OCR filters, filters and full-text searches. Put all documents in a single folder, and have them automatically indexed, making it easier to find. NDA pop-ups that can be displayed upon download or view to make sure users have read and agree to the terms prior to gaining access. The ability to create groups with different permissions and assign roles. Real-time translation of documents to eliminate obstacles to translation that hinder collaboration processes during global M&A deals.