Today’s businesses are more concerned about security than ever before, all because online activities, despite all their advantages, can face serious security threats. Companies have increasingly moved to digital activities, but if they are not wise enough to use only secure tools and applications, they can face many problems, including data breaches. In their search for the right solutions for secure operations, companies have discovered virtual data rooms. VDRs are now some of the most popular tools for storing and sharing sensitive data online.
What are virtual data rooms?
Virtual data rooms are SaaS-based online spaces that have been around since the early 2000s but have only become popular relatively recently. These solutions were designed specifically to store and share sensitive data by companies within the space in a completely secure environment. They are used for a variety of business transactions in almost any industry.
The main reason why VDR solutions have become so popular is their powerful level of security, which can be compared to that of an electronic bank. They use multiple layers of data protection, allow you to control access to documents, but are also quite easy to use, and offer collaboration features to speed up and improve transaction efficiency.
VDRs are also very flexible to use, and allow you to handle a lot of business remotely. You’ll be able to access information within the room from anywhere in the world.
What are data rooms used for?
Data rooms are the ideal solution for large market transactions, such as mergers and acquisitions. When a transaction takes place, your company undertakes to give access to its confidential data to potential customers or investors so that they in turn can analyze and evaluate them, in other words, do their due diligence. In the past, this process was done in person and took too much time and effort, and was much more costly than now. And the risk of a data breach increases several times over during the due diligence process. But with data room due diligence, you can forget about these problems. Spaces save you valuable time and costs, allow you to conduct all transactions remotely, and ensure the security and transparency of the process.
In addition to M&A and due diligence, VDRs are also used during fundraisers, startups, IPOs, and more.
Major Security Features of VDR Solutions
Below we’ll highlight a list of key security features that are most commonly found in quality VDR providers:
- Security Certificates -Data rooms provide customers with security licenses that tell them they meet international security standards and can be trusted
- Data encryption – these are useful data leakage protection methods that encrypt all documents that are in the VDR system. That way, if an attacker wants to retrieve any of your files, they won’t be of any value to them. VDRs provide encryption both during storage and during data exchange
- Backup -continuous real-time backup guarantees the integrity of your data in case of corruption
- Double Authentication -protects the login against unauthorized access
- Detailed permissions allow you to control access and interaction with your documents. VDR administrators can deny document visibility to specific users, as well as prohibit copying, printing, editing, uploading, or forwarding the document
- Watermarks – these markings indicate the ownership of your company, you can mark any document with them, they are usually used for highly confidential files
- Remote Destruction -revoke access to the document even if it was downloaded to a third-party device