A safe, user-friendly virtual data room is essential for any startup hoping to speed up its fundraising process. But creating an VDR that is effective isn’t easy. By following these best practices, you will avoid the most common mistakes.
Too too much information
It can be tempting to include all relevant information in a data room stage 1, but this can distract investors and dilute the impact important information. Remember that not all data are equally relevant. For example, investors at stage 1 don’t need access to cap tables or shareholder certificates.
Poor document structure
Make sure that your files are labeled and organized prior uploading them to the VDR. This will help the acquirer to understand the structure and content of your document. Users will find it easier to locate documents if they utilize an established filing system, consistent file names and tagging or indexing systems. In addition, using summaries and outline of key points will support users in understanding complicated documents. Also, creating clear procedures to eliminate outdated documents will help to reduce unnecessary clutter and improve the overall user experience.
Overstating security
Some companies claim that their secure data room is ultra-secure. It’s the same as https://otherboardroom.com/board-software-pricing-hidden-costs-and-budgeting-tips/ a cereal bar manufacturer bragging about its nutritional value, since it contains zero fat, when they should focus on whether the product fits the intended market.