Secure cloud storage sites also known as an electronic data room can store sensitive information as well as confidential files. Also called a «deal room» that allows businesses to share sensitive information with authorized parties in a controlled environment. This improves workflow and boosts productivity. Many VDRs feature advanced security features like granular access controls as well as document tracking and version https://greatdataroom.com/how-can-a-due-diligence-checklist-improve-your-investment-deal/ control. Some have redaction, which blacks out sections of files to keep personally-identifiable information private. Others use fence view which covers a document with a digital watermark in order to stop screen-shotting. These features allow companies to comply with data protection regulations including GDPR and HIPAA.

Financial services firms need to store a lot of data that spans regulatory compliance and information about clients to financial transactions. VDRs aid in reducing the whole process by providing secure, simple collaboration with 24/7 access and a dedicated support staff ready to help in the event of any issues. Many of the top VDR providers offer banking clients the ability to customize their solution to meet the needs of their industry, such as Bit’s data space for mortgage brokerage as well as investment banking.

M&A due diligence is one of the most common use cases for VDRs due to the fact that it requires a lot of investigation into the business documents that are sensitive. Datasite is a highly rated VDR that makes the M&A process simple and efficient. It has a user-friendly interface and possesses exemplary data security features. Additionally, CapLinked’s solution to immovable property offers a powerful secure environment for exchanging documents with investors without having to worry about the security of these documents.