A virtual data room that is easy to use and secure is essential for any startup looking to speed up fundraising. But creating the right VDR is not without its difficulties. By following these best practices, you can avoid the most common mistakes.

Too many details

It can be tempting to include all relevant data in a room stage 1. However, this could distract investors and reduce the impact of crucial information. It’s important to remember that not all data is equally relevant. For instance, investors in stage 1 don’t need access to cap tables or shareholder certificates.

Poor document structure

Make sure your files are organized and labelled before uploading them to a VDR. This will assist the user in understanding the content and structure of documents more easily. For example, using a standardized filing system with consistent file names and the use of tagging and indexing systems will make it easier for users to locate files. Summary and https://otherboardroom.com/board-software-pricing-hidden-costs-and-budgeting-tips/ outline documents can aid users in understanding complex documents. Also, having a clear procedure for the removal of old files will help reduce clutter and enhance the overall user experience.

Overstating security

Some companies go overboard with declaring that their secure data rooms are extremely secure. It’s like a food manufacturer boasting about the nutritional value of their cereal bar since it’s low in fat when they should be focussing on whether the product is a good fit to the market it is intended for.