Using a Virtual Data Room as a Secure Deal RoomTechnology by Paul Petersen - June 1, 20210 These days, many business deals are conducted online. While this is much more convenient than hammering out the specifics of a deal in an in-person setting, there are some security issues that also crop up when this occurs. This is because nefarious actors such as hackers and cybercriminals have become more prevalent in recent years, particularly during the COVID-19 pandemic. As such, it is important for businesses to invest in the right tools so that they can run their online deals with confidence. More importantly, any documents that are shared during the deal-making process need to stay confidential. Fortunately, there is a tool that can help to make sure that the deal-making process is more secure. This tool is called a deal room. A deal room, in short, is a virtual data room that is converted for the use of deal-making. Typically, a virtual data room is used by companies internally to make sure that their documents are secure. This is a layer beyond what typical cloud storage platforms provide such as Dropbox or Google Drive. However, a virtual deal room becomes a data room when it is used to support things such as M&A’s, fundraising, strategic partnerships and even potential IPOs. In other words, anything based on the interaction between two or more parties unlocks the functionality of a virtual data room to be used as a deal room. One of the great parts of using a virtual data room as a deal room is that it lowers the time needed to find specific documents. That means that the deal room is not just be used as a way to secure confidential documents such as sensitive information, but also to organize documents, leave comments on them, and allow both parties to track changes within the documents. This is particularly important when hammering out negotiated contracts or other sensitive agreements that require an organizational structure. Documents can also be dragged and dropped into the deal room, or even emailed in using a secure email service. This makes it very easy to add and remove particular documents at the discretion of both companies involved in the deal. Because the deal room is so large, it essentially has unlimited storage, so you will not have to track this unlike in Dropbox or Google Drive. There are also no restrictions on the types of files you can upload to the deal room, making it a great way to share things in various file formats that may need to be looked over by both parties, including videos and images. The deal room can also allow you to set user permissions, which ensures that only the relevant parties have access to specific documents that are being used in a deal. For example, a middle manager may not need access to something that the legal team does, and even if that manager is involved in the deal in some capacity, there is no reason to give them access to a legal document that they may not understand or misinterpret. Overall, a deal room is an excellent tool for companies that have moved their deal-making online and want to do business with companies outside of their local area. When employing a virtual data solution for their own needs, companies should be aware that its versatility also allows for it to be used as a deal room to enhance their own deal-making needs.