A data room is an online repository that holds confidential documents and provides restricted access to view and evaluate them. It’s a highly versatile tool that can be used in a variety of projects that require document sharing and professional storage and management of files, from M&A to tenders and capital raising.
Unlike standard cloud storage solutions the data shared in a data room can be highly sensitive and confidential and any loss of this data could potentially be devastating to an organisation. Data rooms come with advanced security protocols that protect against the unauthorized access. This is not possible with traditional cloud storage.
Due diligence is the most frequent use of a room for data during a business deal. This process can involve combing through tens of thousands of highly confidential documents and it’s vital that the right people scrutinize the information in a secure environment. A virtual data room can help.
When choosing a data room make sure you check the audited certificates of the provider https://dataroomdigital.blog/how-private-equity-investors-finance-startups-and-other-companies/ and search for features like multi-tier access and granular control on user activities. Also look for tools for reporting such as Q&A and reporting tools. Consider looking at websites that review software to see what other users have to say about a particular provider.
iDeals offers a fantastic interface and provides support for due diligence. We’ve used it on a number of transactions and recommend anyone looking for a secure way to share sensitive information.