A secure dataroom for business (also called a virtual deal room, VDR, or electronic dataroom) is a safe online space for uploading and sharing sensitive files and documents. It allows users upload and review critical information with investors, clients, or company leadership via the internet in a secure environment. It is used http://www.vdrlabs.info/3-key-components-of-an-investment-pitch-deck-that-every-entrepreneur-should-have for due diligence and compliance and litigation, corporate transactions, and fundraising.

The most important security feature is to block the unauthorized access of sensitive documents. Access controls are used to restrict access to the protected documents to those who have been granted access. It also features tools to track who has seen what and when. Many systems provide encryption for data in transit so that hackers can’t hack servers and gain access to documents if they do not have the appropriate keys.

Certain systems also allow downloads of documents for offline viewing. This increases convenience for users but also decreases security as PDF files can be easily hacked with screen graber tools. They may only offer the most basic protection like watermarks that can be easily removed.

When properly utilized, a secure data room can speed up due diligence and accelerate the sale process because it allows multiple stakeholders to work on a project in real time. It will also increase competition among buyers as it ensures that the most accurate document set is accessible to be reviewed. It will also save the company purchasing the goods by eliminating the requirement to pay for storage and space.