A data room is a secure digital location that houses sensitive documents, information, and confidential documents. They are typically used for due diligence during business transactions, IPOs, and court proceedings. Data rooms are also utilized by companies that need to collaborate on projects shared by multiple parties.
In the past, physical rooms were the primary method of conducting due-diligence in the course of a transaction. They were costly, and required a lot of planning to organize meetings in person. With a virtual data space, due diligence is faster and much easier. A virtual dataroom is a cloud-based application for file sharing that allows participants to access documents from anywhere in the world, without the need for an in-person meeting. A virtual dataroom is equipped with advanced features, such as document tracking and version control. It also facilitates simple collaboration.
It’s crucial to bring all the relevant people at the same time, whether you’re planning an acquisition or raising funds. However, it can be time-consuming, inefficient, and incredibly frustrating. Email is a notoriously chaotic way to communicate documents, and with attacks from phishing on the rise and increasing, it’s more essential than ever to adopt a better approach to due diligence.
PandaDoc allows you to create a dataroom in just minutes, and simplify your documentation. You can add any number of documents to the dataroom, and use guided signatures to gather all the signatures needed. Get started now!
