A secure virtual dataroom (also known by the names electronic data room or online due diligence platform or VDR) lets organizations securely and safely share important documents over the internet with external parties in a controlled environment. During transactions such as M&As, fundraising, real estate deals and IPOs the documents shared contain sensitive information. This means that they must be secured from cybersecurity threats.
Contrary to file sharing services with basic upload storage and download features that produce security threats, a VDR is a complete security and control features. For instance, it allows for access to documents in granular ways, print, view and download restrictions, dynamic watermarking and two-factor authentication. A virtual data room is also always backed up, and its integrity is monitored to ensure that no files can be accidentally deleted.
VDR providers assist businesses in completing complex transaction processes like M&A due diligence and help them become more efficient by supplying powerful collaboration tools. A virtual data room, for instance provides a Q&A area where both internal and external stakeholders can communicate. This feature can save time by removing the need plan meetings, and it also makes it easier to track changes to documents.
The best VDRs are also equipped with strong physical security measures like backups of data offsite and fire protection. They have a business continuity plan and perform regular penetration testing to ensure that data is not lost. Furthermore, they employ multiple layers of protection against ransomware as well as other types of cyber attacks. Additionally, they have disaster recovery systems which include multiple failover capabilities and data center recovery testing. For instance, FirmRoom backs up servers and customer information daily and ensures that the data is never lost.
