A safe, user-friendly virtual data room is a must for any startup seeking to accelerate its fundraising process. However, establishing a successful VDR is not without its challenges. By following these best practices, you will avoid the most frequent mistakes.
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 can be distracting for investors and may dilute the impact of important information. It’s also important to keep in mind that not all data is equally https://mac-interactive.com/5-simple-no-designer-tools-for-structuring-your-data/ valuable. For example, investors at stage 1 do not require access to cap tables or shareholder certificates.
Poor document structure
Make sure that your files are labeled and organized prior uploading them to a VDR. This will make it easier for the person who is purchasing the document to comprehend the content and structure of your document. Users will find it easier to find documents if they utilize a standard filing system that uses consistent file names, as well as tagging or indexing systems. Furthermore, using summaries or outlines of key points will assist users in understanding complicated documents. Additionally, creating a clear and concise procedure to remove old files will reduce clutter and improve the overall user experience.
Overstating security
Some companies claim that their secure data room is ultra-secure. It’s like a food producer boasting about the nutritional value of their cereal bar as it has zero fat when they should be focussing on whether the product is a good fit for its intended market.