A virtual data room that is simple to use and secure is vital for any startup looking to speed up their fundraising process. However, creating an effective VDR isn’t without challenges. By following these best practices, you will avoid the most common mistakes.
Too too much information
It’s tempting to include every bit of relevant data you’re required to submit in a stage 1 data room, however this can be distracting for investors and could reduce the impact of important information. Be aware that not all data are equally relevant. For instance, investors in stage 1 do not require access to cap tables or shareholder certificates.
Poor document structure
Ensure your files are properly labeled and organized prior to uploading them to the VDR. This will assist the user in understanding the structure and contents of documents more quickly. Users will be able to locate documents if they use a standard filing system with consistent file names and indexing or tagging systems. Summaries and outlines will assist users in understanding complicated documents. Additionally, creating a clear and concise procedure https://mac-interactive.com/5-simple-no-designer-tools-for-structuring-your-data/ for the removal of old files will reduce clutter and improve the overall user experience.
Overstating security
Some companies go overboard by claiming that their secure data rooms are ultra-secure. It’s the same as the cereal bar company boasting about its nutritional value, since it’s fat-free and sugar, but they should concentrate on whether the product is suitable for the market it is intended for.