Digital Data Room Definition – What is a Digital Data Room?

A digital data room is an online repository of files that holds confidential documents, files and other information. Digital data rooms are used for business transactions, due diligence and other projects that require secure document storage and sharing.

Mergers and acquisitions, capital raising joint ventures and tender processes all require the examination of a great deal of confidential information. For major deals, this could be tens of thousands of highly sensitive documents that must be examined by the right people to make the right decision. But if this information is shared with the incorrect people, it could result in security threats and even legal action.

A virtual data room allows different teams to look over documents at the same time, independently, and it eliminates geographical limitations. They can also share data in a systematic manner and monitor access through an attendance register. In addition, most providers offer a variety of tools to manage access and stop leaks and manipulations of documents that are not authorized, such as watermarks.

Digify offers advanced branding features that allow you to create a custom login screen background, email layouts, and backgrounds for your data room. These options are great to give your data room a clean, professional appearance that can help you gain confidence from investors. Our analytics feature is a great tool to use to determine who has been reading your documents and for the length of time. This data will help you identify potential investors to proceed with the deal. Start a free trial of 30 days today to discover the future of digital rooms.