Online data room and SSL
A virtual data room (VDR) in the sense of protecting confidential documents in a secure environment is better than free file-sharing platforms like Dropbox or Google Drive. These services are suitable for sharing documents on a daily basis, but they are not able to handle significant business events like IPOs, M&A due diligence tenders, capital raises and tenders.
A VDR is an online service that secures, stores and manages private information with multiple users via the internet using the browser-based interface. This makes it ideal for use in M&A deals, venture capital and fundraising as well as IP protection and project management.
Many of the features that are found in file-sharing applications are also available in VDRs. These include two-factor authentication (2FA) and Single Sign-On (SSO) and user-specific permissions. VDRs offer additional security features like IP restriction, which blocks access to specific devices, continuous data backups and 99.9 percent uptime.
Businesses that handle sensitive information regularly should choose a VDR that is certified with ISO 27001 certification. This covers all the platform’s systems, operating procedures and infrastructure. A GDPR-compliant VDR also meets European standards for data protection, while an ITAR compliant VDR follows US regulations governing documents related to defense and military. A HIPAA compliant VDR adheres with national medical record-keeping and transactional standards for electronic records. This allows healthcare companies to share confidential patient data with outside partners in a secure environment.