The first step in selecting the right Data Room solution that suits your company is to determine what you want it to do. Different companies will have different priorities for their Data Room; from ensuring the security of information, improving the governance and relationships with investors and stakeholders to making the management of documents more efficient or assisting in corporate transactions such as M&A deals and fundraising rounds.
Due diligence is the most frequent application of the virtual Data Room during a business deal. When a business is looking for investment or a an alliance with another business, it must review many documents. A Data Room provides a secure environment to share this information and to speed up the process of negotiating.
A good Data Room will provide features that allow due diligence, including: data encryption at rest and in transit and two-factor authentication; audit trails for every user’s activities; a variety permissions protocols, as well as mechanisms to prevent unpermitted sharing or access. It also allows you to delete sensitive data from documents. This is a laborious task if it is done manually.
After a company has uploaded 1st party data into a Data Clean Room, they can then develop aggregated insights without individual identifiers and deliver them to an editor, publisher DSP or advertising network for measurement. A company, for instance could make use of an aggregated audience of similarity that is created in a Data Clean Room in order to attract new customers via its Google advertising campaigns.
