23 Set Avoiding Data Room Setup Pitfalls
A safe, user-friendly virtual data room is a must for any startup looking to speed up its fundraising process. But establishing the right VDR isn’t without obstacles. Most common mistakes are easily avoided if that the following best practices are in place:
Too too much information
It can https://mac-interactive.com/5-simple-no-designer-tools-for-structuring-your-data/ be tempting to include all relevant data in a data space stage 1. However, this can distract investors and reduce the impact of key information. Be aware that not all of the data are equally relevant. For instance, investors at stage 1 do not need access to cap tables or shareholder certificates.
Poor document structure
Be sure that your documents are organized and labelled before uploading them to the VDR. This will assist the user in understanding the structure and contents of a document more quickly. Users will find it easier to find files if they employ an established filing system with consistent file names and tagging or indexing systems. Summaries and outlines will help users understand complex documents. Finally, establishing clear protocol for removing old files will reduce clutter and improve the overall user experience.
Overstating security
Some companies go too far in saying that their secure data rooms are ultra-secure. It’s similar to a cereal bar manufacturer bragging about its nutritional benefits because it’s low in fat and sugar, but they should concentrate on the quality of the product and whether it is suitable for the intended market.