To choose the Data Room option that is the right one for your company, you must first know what you want it to do. Different businesses will have different needs for their Data Room; from ensuring security of data, improving the governance of the company and its relationships with stakeholders and investors to making the process of managing documents more efficient or supporting corporate transactions such as M&A deals and fundraising rounds.
Due diligence is the most popular use of the virtual Data Room during a business deal. When a company is in the process of seeking investment or enters into strategic partnerships with other organizations, they must review an extensive amount of documents. A Data Room is a safe space for sharing this information and can aid in speeding the deal-making process.
A good Data Room should have features that help with due diligence. These include: data encryption in transit and in rest; two-factor identification and audit trails of every user activity; permissions protocols and mechanisms to stop unauthorised access or sharing. In addition, it will provide the capability to remove sensitive information from documents, which can be an time-consuming task if performed manually.
Once a company uploads 1st-party data to a Data Clean Room, they can then build aggregated insight without individual identifiers, and provide them to publishers, DSP or an ad network to measure. A company, for instance could make use of an aggregated audience of similarity generated in the Data Clean Room in order to reach new customers through its Google advertising campaigns.