A data room is a safe digital space that holds sensitive, confidential documents and information. They are typically used for due diligence in business transactions, IPOs, and court instances. Companies that require collaboration with multiple parties in shared projects also utilize data rooms.
In the past physical rooms were the most popular method of conducting due-diligence in a transaction. These were expensive and required lots of planning to coordinate meetings in person. Due diligence is simpler and faster when using the use of a virtual dataroom. A virtual dataroom is a cloud-based application for file sharing that lets users access files from anywhere around the world, without requiring an in-person meeting. Virtual datarooms have advanced features such as document tracking and control of version. It also facilitates easy collaboration.
It’s essential to bring all the relevant people at the same time, whether you’re working on an acquisition or raising funds. It can be frustrating and time-consuming as well as inefficient. Email is a notoriously messy method of sharing documents. With an increase in phishing-related attacks, it is more important than ever that you change to a more effective due diligence method.
With PandaDoc you can set up data rooms in a matter of minutes and use it to improve your documentation process. You can add any number of documents to the dataroom, and use guided signatures to collect all signatures required. Get started today!