A cloud data room is a cloud service specifically designed for the storage and sharing of confidential business information in a secure setting. They’re used to facilitate due diligence in M&A transactions, IPOs, and legal proceedings, but they can be employed in any situation that requires the secure and streamlined management of sensitive documents.

Virtual data rooms are highly adaptable, and can be accessed via an internet connection. But unlike traditional laptops, desktops and servers that could be damaged or stolen from your office, data stored in the cloud is protected by multi-layered security measures. That includes firewalls as well as encrypted transmissions and multiple backups to protect against accidental or malicious data loss.

A virtual data room also offers a number of features which support the processes dealmakers manage. This includes a Q&A space with advanced permission controls as well as bookmarks and notes. They also provide comprehensive analysis of the activities. Many cloud storage providers provide a higher quality of customer cloud data room service than traditional cloud storage. This includes multilingual assistance via phone, email and in-app.

To identify a reliable cloud data room provider, it’s worth checking whether they have SOC 2 certification and ISO 27001 accreditation. This is an independent test that assesses a service’s ability to safeguard sensitive data from security threats and proves their compliance with internationally recognised standards.