What is a Secure Data Room?

Secure dataroom is an online collaboration platform that helps streamline due diligence, reduces timeframes for M&A and deal making, while providing a guarantee of safety. It allows buy-side as well as sell-side teams to handle the full cycle of transactions from start to finish with confidence.

What is it that sets a secure data space against file sharing websites like Dropbox is that it’s typically designed for the enterprise with the ability to group users, assign granular permissions and gain insight into the use of your data through analytics (e.g. the time, date and location your data is accessible). Some have advanced features, including the ability to block copying and downloads (a big no-no) or displaying documents in a way that can’t be scanned. Many of them use industry-leading encryption technology to scramble sensitive information as well as multi-factor authentication to ensure that it’s the person trying to log in and request access to the data.

The majority of secure datarooms allow users to download PDF files to view offline. However, if you allow users print these files to physical printers or let data room provider them save them to file drivers for various purposes, they are not protected by the same protection that is provided to the original data in the virtual data room.

If you are able to extract the downloaded files from the data room or other systems and access them on a computer without connecting to the Internet this is a complete denial of the purpose of having a secure data space for M&A due diligence or litigation, compliance, or other documents that are sensitive and require to be locked to devices and not transferring to servers. This is the reason we recommend using a DRM system that locks files to devices rather than to servers which makes it impossible for you to extract them from devices or share them with others.

— Posted on April 29, 2024 at 12:00 am by permagroove