A data room is a type of digital or physical storage space where businesses store pertinent information for due diligence. In the process of due diligence investors want to verify that all company’s documentation is well-organized and up-to-date. This gives them the impression that there aren’t any hidden surprises. A poorly-designed data room will negatively impact the valuation of investors. A good one will make them view a startup in a more positive light.
The most effective virtual data room is one that has many features that make it easier for users to use them. These features include customizable watermarks, granular settings for permissions and audit reports to track user activity. The most advanced data rooms also allow for full-text search, optical character recognition (OCR) and filtering functions for finding specific documents or a range of files. Additionally a secure VPN connection allows for remote access to the data room.
The ability to support different devices and browsers is the primary feature. This allows users to view and work with the data from anywhere, at any moment.
Data rooms can also assist you to make the process easier for you. They offer a central location to store all documents, automate document review and approval and even coordinate guided signing and more. To find out more, download an absolutely free trial of PandaDoc’s eSignature software now!