A data room is an electronic storage system that lets documents be kept in a secure environment. It also offers a variety of other features that aid with the due diligence process. These tools include annotation tools with granular permissions and access, watermarking and activity tracking.

A typical use for the use of a data room is to share security documents (SOC 2 docs as well as compliance certificates,) with clients to support the due diligence process. Sharing this information with other parties prior to the deal is closed is a great strategy to speed up the due diligence process, and also reduce the risk.

Traditionally, companies have utilized email to share SOC 2 documents and other documents. While this works it is inefficient and creates issues with version control. This is also insecure, due to the rise in emails that are a result of compromised mailboxes, stolen credentials, and phishing exploits.

Many secure storage and file sharing options such as Box and Dropbox, offer document accessibility on any device or any location. They offer a high degree of security, but most people and businesses need more. Documents that are sensitive and used to raise funds due diligence, negotiating deals must be stored in software with higher levels of security.

The most important question to ask any’secure data room’ is, does it stop authorized users from sharing documents with non-authorized users? Unfortunately the answer is typically «no». Most secure data rooms do not even limit the number of times the same user credentials can be used to access the system. It is simple for users datazoning.net/a-comprehensive-data-room-software to reuse logins from their own devices or simply copy and paste the link into a browser on a friend’s computer.