A data room is a secure online document storage platform that can be used to share and exchange confidential documentation. It is used during the due diligence phase of the deal, but it is increasingly being used for other purposes, such as fundraising and business restructuring.
Data rooms are designed with the goal of streamlining and assisting the due diligence process. They enable companies to share sensitive documentation with potential investors and partners in a secure, intuitive and simple-to-use environment. They can be used to facilitate many different business transactions, including mergers and acquisitions (M&A) and joint ventures, capital raises, restructuring, stock market listings, and debt financing.
Users can be invited using either a customized or pre-defined list of email addresses based upon their role or contribution to the project. They will then be granted access or restricted access to the folder groups, individual documents, or the complete contents of the data room. This ensures that only those with the right to see the information can do so and helps to ensure that there is no unauthorised sharing. Users can look through detailed audit trails to determine who viewed what and when. This is crucial for legal purposes.
Watermarking security based on role, role-based scanning, and data encryption are all features that provide secure security. The system can be set up to meet specific standards for compliance for the legal, biotechnology and medical industries, such as ISO 27001, GDPR, GCP and HIPAA. This can improve the efficiency of the work processes and reduce operating costs.