A data room is a space that is secure and safe for confidential documents. They are used to carry out due diligence in business transactions, IPOs and court proceedings. Data rooms are also used by companies who need to collaborate on collaborative projects with several parties.

In the past physical data rooms were the usual method to conduct due diligence in a business transaction. They were costly and required much planning to coordinate meetings in-person. With the use of a virtual data room due diligence is quicker and simpler. A virtual data room is a cloud-based file sharing tool that permits participants to access files from anywhere in the world and without the need for an in-person meeting. Virtual datarooms have advanced features like document tracking and control of version. It also facilitates simple collaboration.

It’s crucial to get all the right people together at the same time, whether you’re attempting data rooms to make an acquisition or raising funds. It can be frustrating slow, inefficient and time-consuming. Email is a notoriously chaotic method of sharing documents. With the rise of phishing attacks and increasing, it is more crucial than ever that you switch to a better due diligence process.

With PandaDoc you can set up data rooms in a matter of minutes and use it to improve the process of preparing documents. You can add any number of documents into a dataroom, and then use guided signature to collect all signatures required. Start today!