Secure dataroom is a cloud-based service that’s designed to protect data room provider and share confidential business information. It is used for M&A due-diligence, IPOs and litigation, fundraising and other sensitive document processes. It provides a higher degree of security than online file sharing services. The underlying server space is encrypted, which can prevent hackers from gaining access to the data Some also provide features such as granular permissions and search capabilities, as well as customizable NDAs and a Q&A feature, personal watermarking and multi-factor authentication.
These features don’t stop authorized users from making copies of files they have access to, and sharing them with other users. This is a simple process. These services also do not provide a hyperlink that could indicate the source of illegal distribution.
This is why it’s essential for companies looking for a more sophisticated way to store and share documents to look into the idea of a virtual room (VDR). Unlike the low-level protection provided by email, Google Drive and Dropbox, VDRs protect confidential information as well as intellectual property by utilizing advanced encryption and tracking features that make it difficult for users to copy or distribute protected files. This includes dynamic watermarking that applies unique identifiers for each document that include the email address of the recipient as well as IP address, to deter unauthorised sharing. A reliable data room, like Digify can also track who is viewed documents frequently, how often and for how long.