A secure dataroom is where confidential data can be kept. Its purpose is to facilitate the exchange of documents during legal proceedings, M&A transactions, etc. They are either physical or virtual. Virtual data rooms are becoming more popular due to the development of technology. They are cost-effective, user-friendly and include a variety of security features.

A virtual data room is the most effective option for sharing sensitive documents, like due diligence documents used in M&A and venture capital deals. They have multi-level security systems that include encryption and dynamic watermarks that prevent any unauthorized dissemination, as well as two-step verification for access. In addition to these features, a few online data storage facilities also offer reports on activity that indicate who accessed which file and the date and time they accessed it.

When choosing a provider ensure that they provide the following essential features:

Permission controls that are flexible allow administrators to set access and downloading rights for each document. Search function enhanced to find specific and partial matches between documents and folders by using OCR filters, filters and full text searches. Ability to upload all documents useful reference into one folder and index them automatically to make them easier to find. NDA pop-ups which can be displayed during download or browse to ensure users have agreed to the terms before they can access. The ability to create groups with different access rights and assign roles. Real-time document translation in order to eliminate barriers to language that can slow down collaboration processes in global M&A deals.