A data room is an electronic location that secures sensitive and confidential documents. They are used to carry out due diligence in business transactions, IPOs and court proceedings. Companies that need to collaborate with multiple parties in shared projects can also use data rooms.
In the past, physical rooms were the primary method of conducting due diligence during the course of a transaction. They were costly and required a great deal of planning to manage meetings in person. With a virtual data space due diligence can be completed faster and more efficient. Virtual datarooms are cloud-based software for file sharing that lets participants access documents from anywhere in the world, without the need for an in-person meeting. Virtual data rooms have advanced features, including document tracking as well as version control and easy collaboration.
It’s crucial to bring everyone you need at the same time, whether you’re planning an acquisition or raising funds. However, it can take a long time, is inefficient, and incredibly frustrating. Email is notoriously unorganized way to share documents. With an increase in phishing attacks it’s more crucial than ever to switch to more effective methods of due diligence.
PandaDoc allows you to create a dataroom in just minutes, and simplify your documentation. You can add any number of documents to a dataroom, and then use guided signatures to collect all the necessary signatures. Get started today!