Cloud data rooms are cloud-based services that are specifically designed to store and share sensitive business information in a secure setting. They are used to support due diligence during M&A deals, IPOs and legal proceedings. However, they can be utilized in any situation that requires the secure and efficient handling of sensitive documentation.

Virtual data rooms are extremely elastic and are accessible via an internet connection. But unlike traditional laptops, desktops, and servers that can be stolen or damaged from your office, data stored in the cloud is secured with multi-layered security measures. That includes firewalls as well as encrypted transmissions and multiple backups to prevent any accidental or malicious data loss.

A virtual data room provides a variety of features to aid the processes dealmakers manage. They have a Q&A section with advanced permissions controls bookmarks and notes, and detailed tracking of activity. Many providers offer a higher quality of customer support than traditional cloud storage, with multilingual support via email, phone and in-app.

It is crucial to confirm if a cloud data room provider has ISO 27001 and SOC 2 accreditation. This is an independent audit that examines the capacity of a cloud service to protect against threats to your personal data and confirms their compliance with internationally recognised best practices.