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A data room is a secure location that’s set up to store and limit access to confidential and privileged information. They’re often used for mergers and acquisitions (M&A), initial public offerings (IPOs), audits, and venture capital (VC) financing deals.
These days, data rooms are largely virtual, and generally are “A collection of folders in a cloud storage system” like Dropbox. You will likely be required to set up a data room if you are selling your company or raising money.
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