A virtual data room that is easy to use and secure is vital for any startup hoping to speed up their fundraising process. However, creating a VDR that is successful isn’t a simple task. The most common missteps can be avoided if the following best practices are in place
Too many details
It’s tempting to include every bit of relevant information that you have to hand in the stage 1 data room, however this could distract investors and can reduce the significance of important information. It’s also important to keep in mind that not all data is equally important. For example, investors at stage 1 do not require access to cap tables or shareholder certificates.
Poor document structure
Make sure your files are labeled and properly organized before uploading them to a VDR. This will help acquirers understand the content and structure the document more quickly. Users will be able to find documents if they use an established filing system that has consistent file names as well as tagging or indexing systems. Summaries and outlines will assist users in understanding complicated documents. Also, having a clear procedure for removing old files will cut down on clutter and enhance the overall user experience.
Overstating security
Some companies claim that their secure data rooms are ultra-secure. It’s like a food manufacturer boasting about the nutritional value of their cereal bar as it has zero fat while they should be focusing on whether the product is a good fit to its intended audience.
https://mac-interactive.com/5-simple-no-designer-tools-for-structuring-your-data/