A data room is a safe digital storage space that can house sensitive documents, confidential information and documents. These are typically used to conduct due diligence in business transactions, IPOs, and court instances. Data rooms are also utilized by businesses that have to collaborate on projects shared by several parties.
In the past physical data rooms were the most common method to conduct due diligence during a business transaction. These were expensive, and required a great deal of planning to manage meetings in person. Due diligence is easier and faster with the use of a virtual dataroom. A virtual dataroom is a cloud-based tool for sharing files which allows users to access documents from anywhere on the world, without having to have an in-person meeting. Virtual datarooms have advanced features, such as document tracking and version control. It also allows for easy collaboration.
It’s essential to bring all the necessary people in one place, whether you’re working on an acquisition or raising funds. But it can also take a long time, is inefficient, and extremely frustrating. Email is notoriously chaotic method of sharing documents. With an increase in phishing-related attacks and the threat of phishing increasing, it’s more crucial than ever that you switch to a better due diligence approach.
PandaDoc lets you create an entire data room in minutes, and streamline your documentation. You can add any number of documents to the dataroom, and use guided signatures to collect all signatures required. Get started today!