Unknown Facts about Virtual Data Room For Secured File Sharing.pdf

Unknown Facts about Virtual Data Room
For Secured File Sharing
The global data room software market is expected and projected to increase
from $ . billion in to $ . billion by , at a Compounded Annual
Growth Rate of approximately . % during this period. Numerous factors such
as the increasing importance of business data due to complexities occurring
during M&A activities and the transition to remote work during the coronavirus
pandemic are accelerating the usage of virtual data rooms from reputed data
room service providers like Con ex Data Room, among others. The e ective
utilization of innovative technologies and techniques has become essential as
buyers, vendors, top executives, nancial and legal advisors, and even
administrators adapt to the rough business environment and look for platforms
that are fast, and secure for online data storage, secure le sharing as well as for
due diligence and deal-making.
by
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A virtual data room, also known as a data room for investors is a secured online
repository for your business sensitive documents and a secure le-sharing
cloud-based platform. Businesses globally use secured data rooms for deals as it
protects their vital business data and information by robust security protocols,
as well as ensures seamless and secure access anytime, from anywhere in the
world, and on any device.
The need for a virtual data room
A data room for investors is an on-demand solution for storing, organizing, and
securing le sharing of sensitive business data. Business organizations use a
data room for M&A or any other type of business deal, because it safely shares
data with only authorized persons, thereby preventing it from becoming a
liability. A virtual data room or a data room software fuels and helps hasten
corporate decision-making in many aspects of business and is a very crucial and
critical component of many business processes like mergers and acquisitions,
fundraising, IPOs, and almost every other strategic business deal.
It is cost-e ective and lets secure le sharing of data between multiple
employees of the same company or between di erent organizations and their
third-party consultants, bankers, and legal advisors. A virtual data room from a
reputed data room service provider like con ex data room eliminates the need
for physical documents, which in turn reduces the costs of printing, ling, and
storing physical documents. Another major expense that a data room M&A or a
data room software eliminates is the cost and time of traveling for the sole
purpose of viewing or scrutinizing documents before initiating any deal
process.
A due diligence data room facilitates and quickens the pace of the due diligence
process during an M&A, private equity, venture capital transaction, or even loan
syndication. A secured data room for deals also reduces the geographical
limitations that once made the process of negotiating, communicating, and
deal-making across borders laborious and time-consuming.
How does a data room for investors safeguard data and information?
A secured data room for deals o ers a bank-grade level of security for the data
stored and in transit. A few of the security features that most reputed data room
service providers like Con ex data room o er include:
Physical data security which ensures ongoing and continuous data back-up

and availability above 99.9%
Infrastructure security that allows -bit AES encryption and protects data
stored in remote data centers
Application security that implements robust encryption protocols while in
storage and in transit, multi-level and multi-factor authentication, as well as
data siloing in private cloud servers
Document permissions and restriction settings. Most data room for investors
provides security features such as ‘ view only’, which prevents data from
being copied, shared, and/or printed without permission. Another restriction
is setting permission that allows viewing only certain part of the data that is
relevant to the role of that particular individual in the deal-making process
Digital Watermarking is the use of an embedded marker on the data
(whether it be audio, video, text, or image) to identify ownership of the data.
There are two types of digital watermarking-visible and invisible. This allows
you to track who is downloading and printing data, which helps prevent data
leaks. Most of the good virtual data rooms by reputed data room service
providers like con ex data room have both dynamic and static digital
watermarking.
Audit Trails and Compliance helps analyze activity logs provided by the data
room service provider or data room software and also prove compliance with
various regulatory standards.
The ability to check which IP, device, and location a user logs in from. This
enables you to see when and where the user is logging in from. This helps
protect against data leakages and misuse of your secured data room for
deals.
Single Sign On (SSO) Integration. SSO is a user authentication service that
allows users to enter one set of login credentials, such as user name and
password, and be able to access multiple applications.
Customizable NDA. This feature of data room software requires all the users
who log into a virtual data room to accept the NDA before they can access
the documents.
What are Virtual Data Room Certi cations for Security and Compliance?
ISO Compliance. An ISO compliance means the data room for
investors follows the guidelines set forth to protect Personally Identi able
Information (PII) in storage clouds. Speci cally, ISO is considered the
premiere security choice for cloud storage systems (vs. ISO 27001).
FINRA Compliance. The Financial Industry Regulatory Authority aims to
protect investors by making sure the security industry operates fairly. It is the
largest independent regulator for all securities rms doing business and
o ers regulatory oversight.

SOC . The Service Organization Controls relate to the secure handling of
nancial documents.
Compliant with Safe Harbor’s international privacy practices.
Pick the Best Virtual Data Room Suitable for Your Business Needs
Virtual data rooms are a very powerful tool for scaling your business and
reducing costs on M&As. But a mistake here can prove very costly too. With so
many attractive o erings on the Internet, it can be di cult to make a choice.
Here are a few simple tips to bear in mind:
De ne and analyze your needs and capabilities: what exactly are you
planning to achieve with a secured data room for deals?
Identify desired features: what is more important for your company?
Consider your budget: how much can your business spend?
Read a reliable data room review to see and choose your best option;
Compare virtual data rooms to examine the solutions in detail;
Go to the site of the preferred vendor to learn more about the product;
Check the data room service providers security page
Test the solution with a free trial.
Conclusion: Protecting and sharing important documents virtually is a new
norm today. The usage of online data room software only increases in
popularity and the market for these solutions keeps on growing by the day.
Therefore, in order to scale your business, improve your collaboration,
encourage e ciency, and considerably lower the number of redundant tasks, a
good virtual data room from an internationally reputed data room service
provider like con ex data room should be your next business priority.
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