A virtual data room is a safe method of sharing sensitive documents with multiple parties online. You can control who can see what in a secure environment, and they have auditing tools that make it easy to monitor who has access to files. They also provide advanced levels of security like encryption, two-factor authentication and watermarks that prevent unauthorised sharing of files and information leaks.
Many companies make use of free cloud storage and web-based file-sharing services to share data, however these services do not offer the control over permissions and watermarking and auditing capabilities of data rooms. If you’re trying selling your business, raise capital or close a deal, the ideal scenario is for confidential information to fall into wrong hands.
When you need a preparatory data room, portal or the main due diligence data room, the best VDR providers provide a range of reports that let administrators easily track user activity – from who has visited what to when. This is particularly crucial when working with a third party to ensure confidentiality, particularly after the room is closed.
The best VDR providers also let you specify if each document can be viewed, printed or downloaded from the site. This is useful when working with buyers who have strict requirements for data. They also allow dynamic watermarks on viewed or printed pages to further guard against data leaks and unauthorized sharing of files.