A secure data room is a place which houses data of a special nature. Its purpose is to facilitate the exchange of documents in legal procedures, M&A transactions, etc. They are either physical or virtual. However, with the rise of technology virtual data rooms have become increasingly popular as they are cost-effective, user-friendly and have multiple security measures.
While standard cloud storage can be used for non-confidential documents but a virtual data room is a perfect solution to share confidential files such as due diligence documents in M&A deals and venture capital transactions. They feature the security of a multi-level system, which includes encryption and dynamic watermarks that prevent unauthorized dissemination, and two-step verification to ensure access. Some data rooms on the internet offer activity reports that show who accessed the file and when they did so.
When choosing a provider, be sure that they provide these essential functions.
Granular permission controls allow admins to set viewing and downloading rights per document. An enhanced search function that can find exact and partial matches in documents and folders using OCR filters, filters, and full text searches. Ability to upload all documents within one folder and index them automatically to make them easier to locate. NDA pop-ups that can be displayed when a document is downloaded or viewed to ensure users are in agreement with the terms prior to gaining access. The ability to create groups with different permissions and assign roles. Real-time document translation in order to eliminate language barriers that could slow down collaboration processes in global M&A deals.
https://getdataroom.com/reasons-for-of-usage-data-room-software/