A data room is an online secure document storage platform that allows users to share and exchange confidential documentation. It is typically used during the due diligence phase of the closing of a deal but it’s also being used for various other purposes such as business restructuring and fundraising.
Data rooms are designed to streamline and aid in the due diligence process. They permit companies to share sensitive documents with potential investors and business partners in a secure, user-friendly and easy-to-use environment. They can be used for a variety of business transactions, including mergers and acquisitions (M&A), capital raising, joint-ventures, restructuring, listing on the stock market, and debt financing.
Users can be invited based on their contribution or role to a project, using an array of pre-defined email addresses. Users can be granted or restricted access to specific folders, documents or the entire contents of the data room. This permits only those authorized to access the data to access the data. Users can view detailed audit trails to see who was able to view what information and when. This is crucial for legal reasons.
Secure features include watermarking, role-based access, security scanning for viruses and encryption of data. The system can be set up to meet specific compliance standards for the biotechnology, legal and medical sectors including ISO 27001, GDPR, GCP and HIPAA. This will increase efficiency and lower operating costs.