A data room is a type of digital or physical storage space where companies store relevant information for due diligence. Investors want to know that the startup’s documentation is kept up-to-date and organized during the due diligence phase. This gives them the impression that there will be no hidden surprises. A poorly designed data room will have a negative impact on an investor’s valuation. A well-designed data room will make investors look at a startup more positively.
The best virtual data rooms include a number of features that can help users to use them. These features include customizable watermarks as well as granular settings for permissions and audit reports to keep track of user activity. The most advanced datarooms also offer full-text searches, optical character recognition (OCR), and also filtering features to locate specific documents or files. Additionally a secure VPN connection allows for remote access to the data room.
Lastly, the most important feature of any information room is its ability to support various devices and browsers. This enables users to view and work with the data from any place, at any time.
It is also possible to streamline the process of negotiating deals by using data rooms. They provide a single location to keep all documents, automate document review and approval and even coordinate guided signing and more. To find out more, download a free demo of PandaDoc’s eSignature application today!