A data room is a safe platform for online document storage that can be used to share and exchange confidential documents. It is usually used during due diligence during the closing of a deal but it’s also being used for various other purposes like fundraising and business restructuring.
Data rooms are designed to speed up and aid in the due diligence process. They allow businesses to share sensitive documents with potential investors and partners in a secure, easy and simple-to-use environment. They can be used to support a wide range of business transactions such as mergers and acquisitions, joint ventures, capital raising as well as restructuring, stock exchange listings and debt financing.
Users are invited to join based on their role or contribution to an initiative, using an array of pre-defined or custom addresses. They can then be granted access or restricted access to the folder groups, individual documents, or even the entire contents of the data room. This allows only those who that site have been authorized to access the information to do so. User audit trails for each user are available so that everyone can track who has seen what and when – vital for legal reasons.
Security features that are robust include watermarking access based on role, role-based access to, security scanning for viruses and encryption of data. The system can be set up to meet the specific compliance standards for the legal, biotechnology and medical sectors including ISO 27001, GDPR, GCP and HIPAA. This will increase the efficiency of processes and reduce operating costs.