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A virtual data room is a secure method to share sensitive data with multiple people online. You can control who is able to access what information in a secure environment, and they also have auditing tools that make it easy to monitor who has access to files. They also offer advanced security features like encryption, two-factor authentication, and watermarks that can deter illegal file sharing and data leaks.

Many companies use cloud storage tools and web-based file sharing for their https://www.datarooms.blog/why-virtual-data-rooms-are-better-than-physical-ones data-sharing needs, but they lack the ability to set permissions in granular fashion including auditing and watermarking features that data rooms have. When you’re trying sell your company or raise capital, or close a deal, the last thing you want is for confidential information to fall into the wrong hands.

If you require a preparation data room, portal or main due diligence data room, the best VDR providers provide a range of reports that allow administrators to easily track user activities – from who has viewed what to when. This is essential when you’re working with a third party to make sure that confidentiality continues to be safeguarded, particularly once the room has been closed.

The best VDR providers also allow you to specify if the document you want to download can be printed, viewed or downloaded from the website. This is useful when working with buyers with strict requirements for data. They can also add dynamic watermarks to the pages of viewed or printed documents to guard against leaks of information.