A data room is a secure digital storage space that can house sensitive documents, information, and confidential documents. They are typically used for due diligence in business transactions, IPOs, and court instances. Data rooms are also employed by companies that must collaborate on projects that are shared with multiple parties.

In the past, physical rooms were the most commonly used method of conducting due diligence during a transaction. They were expensive and required a lot of planning to coordinate meetings in person. With the help of a virtual room, due diligence is faster and more efficient. A virtual data room is a cloud-based sharing tool that allows participants to access files from anywhere in the world and without the need for an in-person meeting. Virtual data rooms have advanced features like document tracking along with version control and easy collaboration.

It’s important to get all the necessary people in one place, regardless of whether you’re planning an acquisition or seeking to raise funds. However, it can take a long time, is inefficient, and extremely frustrating. Email is notoriously chaotic method to share documents, and with an increase in phishing attacks it’s more crucial than ever to switch to an improved method of due diligence.

With PandaDoc it is possible to create your own data room in mere minutes and use it to speed up your websites documentation process. You can upload and store any number documents in a data room, then use guided signing to gather signatures from all parties involved in the process. Get started today!