The first step in choosing the Data Room solution that suits your company is to determine what you want it to do. Different companies will have different goals for their Data Room; from ensuring security of data, improving relations with investors and stakeholders to making the process of managing documents more efficient or supporting corporate transactions like M&A deals and fundraising rounds.
Due diligence is the most common application of a virtual Data Room during a business deal. When a company is seeking investment or enters into strategic partnerships with other organizations they will need to review the vast amount of documentation. A Data Room can be a secure space for sharing this information and can aid in speeding the process of negotiating deals.
A good Data Room will provide features that allow due diligence, for example, encryption of data during transit and in storage Two-factor authentication; audit trails for every user’s activity; a variety of permissions protocols; and mechanisms to block unpermitted sharing or access. Furthermore, it should provide the ability to delete sensitive information from documents, which can be difficult to accomplish when performed manually.
After a company has uploaded first-party data to a Data Clean Room they can create aggregated insights that are anonymous and then send them to publishers, DSPs or ad networks to measure. A company, for instance could benefit from an aggregated audience of similarity that are created in a Data Clean Room in order to reach new customers with its Google advertising campaigns.
