What Is a Secure Data Room?

A secure data room is a place where sensitive documents can be stored and shared. The documents can be classified as confidential financial reports, intellectual property trade secrets, trade secrets and other confidential business information. They can also contain personal information like credit card numbers Social Security numbers, credit card number and private medical records.

Many data rooms come with options that allow users to mark folders and files as favorites or bookmark them, which speeds up the process of examining massive amounts of documents. This can be a huge advantage for those who must examine documents quickly for due diligence, acquisitions, or sales.

Some data room providers claim that their systems prevent authorized users sharing documents with non-authorized parties. It’s not as easy as it sounds. While encryption of data in transit is important but it’s not business acquisition financing methods the only factor to consider.

For instance, certain VDRs can decrypt your documents on the server, then transmit them to your browser as unprotected temporary files – that could be hacked. Users can also forward links to your data room files even if they’re encrypted.

The best way to stop information leaks and ensure the success of a data room project is to invest in a specially-designed virtual data room with rigorous security and the tools you’ll need to facilitate deals. Kiteworks offers a no-cost demo to help you understand the ways our platform can help with your next project. Find out more about the capabilities of our software to streamline M&A due diligence corporate transactions, corporate transactions, and capital raising.