A data room in the UK is an online secure document storage platform that allows users to share and exchange confidential documentation. It is often used during more information the due diligence phase of the deal, but it is becoming increasingly utilized for other purposes like fundraising and business restructuring.

Data rooms are designed to streamline and support the due diligence process. They allow companies to share sensitive documents with potential business partners and investors in a secure and simple environment. They can be used for various business transactions such as mergers and acquisitions (M&A) and capital raising, joint-ventures, restructuring, listing on the stock market and debt financing.

Users are invited based on their role or contribution to the project, using an array of pre-defined or customized email addresses. They can then be granted or restricted access to specific folders, documents, or the whole contents of the data room. This ensures that only those who are entitled access to the information can be granted access and helps avoid sharing that is not authorized. Users can review detailed audit trails to see who viewed what information and when. This is crucial to ensure legal compliance.

Security features that are robust include watermarking, role-based access, scans for viruses and data encryption. The system can be set up to meet specific compliance standards within the biotechnology, legal, and medical sectors, including ISO 27001 and GDPR, GCP and HIPAA. This will improve effectiveness and reduce the operating costs.