A virtual dataroom (VDR) allows you to share documents and information in a safe environment. It is used in M&A deals, due diligence, fundraising and other high-stakes activities which require sharing confidential information between parties.

In the past the data visit their website rooms were used to accomplish this. They were kept in a central area that was monitored and required a team of security to control access. The rooms are expensive to maintain and do not have many features which makes them a poor solution for modern businesses.

Digital VDRs are a central repository that is available on demand to authorized users. They also come with numerous security features that are industry-standard including encryption two-factor verification, watermarking and audit logs. This means that you can be confident that your data is secure from malicious activity.

When choosing a VDR provider, be sure to look into their track record and experience in providing online document management services for private information. Also, you should consider how they support different industry standards of compliance. For example, HIPAA-certified businesses ensure that health information protected by HIPAA is kept safe, while those certified under GDPR and CCPA are able to help companies conform to European privacy laws and California consumer protection laws.

Google Drive, Dropbox and Email are all great for sharing files, but aren’t the best choice for sensitive data that requires security and privacy. A reputable data room can help you streamline M&A deals due diligence, M&A deals, and other high-risk tasks, while keeping your personal information safe and organized.