Data Rooms were created to ensure that sensitive corporate documents weren’t shared. They would be physical rooms, typically in a law office, where documents pertinent to a M&A deal would be kept, hence the term ‘Data Room’. People involved in the deal could review the documents in the room but they couldn’t be removed from the room.
Today in the digital world these Data “Rooms” are now virtual, hence the term Virtual Data Room. Although they are modernized they serve the same purpose, to secure sensitive documents. Products like Orangedox provide features to ensure that documents can be digitally delivered to room participants but can’t be shared with others.
What’s included with a virtual data room?
Virtual data rooms offer a secure and centralized location for document storage and sharing, and they typically include a number of features to ensure the security.
Encryption
Protects documents being transmitted and stored, virtual data rooms typically employ strong encryption protocols.
Access Controls
Access to a virtual data room participants must authenticate themselves and typically administrators have the ability to disable access at anytime
Auditing and Tracking
Virtual data rooms typically provide detailed logs of participant activity, including who accessed which documents.
Aside from these security features, virtual data rooms may also provide a variety of features to assist administrators in managing and organizing their rooms
Integration with Content Management Systems
Most companies typically employ a cloud CMS (content management system) to store their files, services like Google Drive, Dropbox etc. Virtual data room products typically will integrate with these services to help reduce document duplication and simplify the workflow when sharing documents using a virtual data room.
Customization
Virtual data rooms usually allow administrators to customize the look and feel of their data rooms, providing a level of professionalism and trust with their participants.
Document Signing
Most data rooms are used to supply supporting confidential information around corporate transactions, M&A, private equity or venture capital transactions. Document signing is a key part of these transactions and is usually included with virtual data room products.
How do I pick the best secure data room?
If you're thinking about employing a virtual data room for your company, you should pick one that fits your requirements and budget. Here are a few things to think about while choosing a virtual data room:
- Ensure that the platform you chose has robust security features such as encryption and access controls.
- Consider the features and tools you require, such as audit logging, document tracking, integrations, document signing and customization.
- Compare the prices of various virtual data room alternatives to discover one that works within your budget.
- Look for a platform that is simple to use and navigate so that your team can access and exchange information quickly and efficiently.
- Make sure that your virtual data room integrates with the tools that you currently use, like Google Drive or Dropbox
Conclusion
Virtual data rooms are an invaluable resource for businesses that need to securely store and share sensitive documents and information. Lots of data room providers have similar features, though pricing does vary wildly. Make sure to weigh the features you’re getting vs the cost of the platform.
Start your 14-day free trial of Orangedox Virtual Data Rooms and see what Orangedox can do for your business.
Orangedox provides one-click create virtual data rooms that are directly synced with your Google Drive folders.
