What Is a Secure Data Room?

A secure data room is a cloud service specifically designed to store and sharing of 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 server space is encrypted to prevent hackers from gaining access to content. Some also provide features like granular permissions as well as search functionality.

These features do not prevent authorized users from making copies of the files they have access to and sharing them with others. This can be done quite easily. These services also do not include a link that would identify the source for unauthorized distribution.

It’s the reason businesses seeking a more sophisticated method to store and share files should think about a virtual room (VDR). Unlike the low-level protection offered by email, Google Drive and Dropbox, VDRs protect confidential information and intellectual property with advanced encryption and tracking features that make it difficult for users to copy or distribute protected files. This includes dynamic watermarking that adds unique identifiers to each file, such as the email address of the person who received it and IP address to discourage unauthorised sharing. A reputable data room, such as Digify can also keep track of who is viewed documents frequently, how often and for how long.







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