What is a Data Room and Why You Should Care

Gone are the days when you had to do everything on paper and companies across the globe had to go through so much trouble to keep their confidential documents away from the wrong hands.

Nowadays, with the emergence of virtual data rooms, businesses can safely keep their important documents secure and make them accessible only to the right people.

If you have never heard of a data room before, read on to learn about data rooms and why you should consider acquiring one for your company.

What is a Data Room?

A data room or a virtual data room is an online storage space where a company can store important documents containing the company’s confidential information like financial statements, intellectual property documents, contracts, employees’ personal information, to name a few.

With virtual data rooms, businesses can share this information only with specific parties like clients and company investors over the internet, anywhere, anytime.

In other words, think of virtual data rooms as online warehouses where companies safely keep their important documents.

Let’s look at why you should consider using an online data room for your company.

Why Use a Data Room?

1. All Your Company’s Vital Information will be Safe

One of the best ways to prevent the risk of a data breach occurring (which we know has severe consequences) is by having an online data room. With a virtual data room, only you and approved parties will be able to access your company’s confidential documents.

What’s more, most virtual data room providers offer advanced ways of protecting your business’s documents like:

• The use of file encryption
• The ability to put watermarks on your documents
• The use of advanced authorizations, to mention a few

2. Online Data Rooms Cost Way Less Than Physical Data Rooms

It’s undeniable that using virtual data rooms will help you save a good amount of money in your company.

With virtual data rooms, there’s no need to buy office supplies to print, staple, edit, and store your documents. You can do all that online and store your documents at the same time.

Online data rooms also serve as a secure backup storage space for your company’s documents if a disaster like a fire occurs in your office.

3. Provides an Easier Way to Access and Share Data

A virtual data room enables other approved parties to easily access your company’s documents regardless of their physical location.

It also helps you and your team of employees, clients, or investors easily work together on different projects and conduct other vital activities, regardless of how far apart you are from each other.

4. Increased Transparency Between You and Other Approved Parties

An online data room is a great setting to improve the trust and transparency between you and your clients and investors.

Most virtual data rooms document every activity, from when an individual viewed a particular document to the changes or modifications made to the document, the number of times an individual viewed a particular document, to name a few.

Hence, this not only helps both you and your clients or investors know how interested both parties are in a certain project, but it also helps both of you know each other’s intentions.

Conclusion

Virtual data rooms have become the best and safest way to store and share a company’s vital information. Learn more at Firmex, one of the best virtual data room providers in the market today.