A data room is a secure platform for online document storage that can be utilized for sharing and exchanging confidential documents. It is usually used during due diligence during a deal but it is also increasingly used for other purposes like fundraising and business restructuring.
Data rooms are designed for the purpose of streamlining and assisting the due diligence process. They enable companies to share confidential documents with potential investors and partners in a secure and easy-to-use environment. They can be used for various business transactions, including mergers and acquisitions (M&A), joint ventures, capital raises, restructuring, listing on the stock market, and debt financing.
Users can be invited by either a custom or pre-defined list of email addresses, based on their roles or contributions to the project. They will then be granted or restricted access to particular folders, individual documents, or the entire contents of the data room. This makes sure that only those who need to view the information are able to do so and helps to prevent unauthorised sharing. Detailed user audit trails are available so that everyone can track who has seen what information and when – crucial for legal reasons.
Watermarking roles-based security, watermarking, virus scanning, and data encryption are just a few of the features that offer robust security. The system can be set up to meet specific standards for compliance for the biotechnology, legal and medical industries, such as ISO 27001, GDPR, GCP and HIPAA. This can increase the effectiveness of work processes as well as reduce operating costs.