A virtual data room that is easy to use and secure is vital for any startup that wants to speed up their fundraising. But establishing a successful VDR isn’t without challenges. Most common mistakes are easily avoided if the following best practices are in place

Too much information

It’s tempting https://mac-interactive.com/5-simple-no-designer-tools-for-structuring-your-data/ to include every bit of relevant information that you have to hand in a stage 1 data room but this could be distracting for investors and can diminish the impact of important information. It’s important to remember that not all data is equally relevant. Investors at stage 1 don’t need to have access to cap tables or shareholder certificates.

Poor document structure

Be sure that your documents are labeled and organized prior to uploading them to a VDR. This makes it easier for the person who is purchasing the document to comprehend the content and structure of your document. For example, using an organized filing system that has consistent file names and the use of tags and indexing systems will help users to find documents. The use of summaries and outlines can aid users in understanding complex documents. Also, creating clear procedures for removing old documents will help to reduce unnecessary clutter and enhance the overall user experience.

Overstating security

Some companies claim that their secure data rooms are ultra-secure. It’s like food manufacturers boasting about the nutritional value of their cereal bar as it has zero fat when they should be focusing on whether the product is suitable for its intended market.