A safe, user-friendly virtual data room is essential for any startup that wants to speed up the process of fundraising. However, creating an effective VDR isn’t without difficulties. By following these best practices, you will avoid the most frequent mistakes.
Too much information
It’s tempting to include every bit of relevant information you have to hand in the stage 1 data room, however this could be distracting for investors and can reduce the impact of crucial information. Be aware that not all of the data are equally important. Investors at stage 1 don’t need to have access to cap tables and shareholder certificates.
Poor document structure
Make sure your files are labeled and organized prior uploading them to a VDR. This makes it easier for the acquirer to understand the content and structure of your document. For instance, an organized filing system that has consistent file names, and the use of tags and indexing systems will aid users to find documents. Furthermore, using summaries or outline of the key points can assist users in understanding complicated documents. In addition, having a clear process for the removal of old files will cut down on clutter and improve overall user experience.
Overstating security
Some companies go overboard with the claim that their secure data rooms are extremely secure. It’s the same as the cereal bar company boasting about its nutritional benefits because it’s low in fat while they should be focusing on whether their product is compatible with the intended market.
https://mac-interactive.com/5-simple-no-designer-tools-for-structuring-your-data/