What is a Data Room?
No one in business would make a major decision without all the facts.
But for significant material events like mergers and acquisitions, tenders and fundraising getting all the information can mean combing through tens of thousands of highly confidential documents.
When businesses need a secure location to share confidential documents with selected third parties, they use a data room to control who gets to see what, and minimize any risk that their confidential business information will be exposed to unauthorized parties.
Data rooms are secure spaces where confidential documents can be kept and only read by people authorized to access the room.
Data rooms are used by companies, advisors, legal teams, investors and auditors, often as an essential part of a due diligence process for material events like tenders, legal transactions, fundraising and audits.
Traditionally, a data room would literally be an actual room full of documents. Businesses would use a room at their own headquarters, their lawyer’s offices or a secure location like a bank where they could house documents and control access to them.
Access to traditional data rooms is tightly controlled. They’re usually physically secured, guarded and closely monitored. That documents can only be viewed in the physical deal room by people allowed to enter it are their key advantage.
Learn more: how secure is a virtual data room?
But physical data rooms have major limitations too.
To execute more secure deals much faster - and with better control over multiple bidders - many businesses opt for a virtual data room to create a secure online place to run their material event.
Learn more: what is a virtual data room?
Ansarada takes the virtual data room much further with advanced data room software that streamlines the due diligence process with AI-powered insights.