A secure dataroom is a cloud-based solution that’s designed to protect and share confidential business data. It is often utilized in M&A due diligence, IPOs, litigation, fundraising, and other document-based processes. It offers a higher degree of security than file sharing online. The underlying server space is secured, which prevents hackers from accessing the content, and many also offer options like granular permissions such as search functionality, customizable NDAs and a Q&A feature personal watermarking, and multi-factor authentication.
These features do not stop authorized users from making copies of the files they have access to and sharing them with others. This is a simple process. Additionally, these services do not provide an identification link that can identify the source of unauthorized distribution.
It’s for this reason that companies seeking a more sophisticated method to share and store files should consider a virtual storage room (VDR). VDRs provide a greater level of protection than email, Google Drive, and Dropbox. They accomplish this by using advanced encryption, tracking tools as well as other security measures that make it difficult for users to copy and distribute protected documents. Dynamic watermarking is a method of adding unique identifiers such as the recipient’s email address or IP address to each document to discourage unauthorised sharing. A robust data room, such as Digify, can also track who is viewed documents as well as how often they are viewed and for how long.