A secure dataroom can be used to keep and share sensitive documents. These documents may include confidential financial reports including intellectual property trade secrets, as well as confidential business information. They can also contain personal information such as credit card numbers, Social Security numbers and private medical records.
Many data rooms have features that allow users the option to save or mark files as favorites. This lets them look over large amounts of information more quickly. This is a huge benefit to users who need to review information quickly for due diligence, acquisitions, or sales.
Some providers of data rooms claim that their software prevents authorized users from sharing documents with non-authorized users. It’s not as easy as it sounds. While encryption of data in transit is vital however, there are a number of other factors to consider.
Some VDRs like, for instance, encode your documents on the server before sending them to your browser in an unprotected temporary file – which can be hackable. Users can also forward links to the data room documents even in the event that they’re encrypted.
The best method to stop information breaches and ensure a successful data room project is to invest in a specially-designed virtual data room, which has business acquisition financing methods strict security and the tools you need to facilitate deals. Kiteworks offers a free demo to let you know how our platform can help with your next project. Learn more about how our software streamlines M&A due diligence, corporate transactions, and capital raising.