https://otherboardroom.com/board-software-pricing-hidden-costs-and-budgeting-tips/
A virtual data room that’s simple to use and secure is essential for any startup hoping to speed up their fundraising process. However, establishing the VDR that is successful isn’t an easy task. The most frequent mistakes can be avoided by ensuring that the following best practices are in place
Too much information
It’s tempting to include all relevant data in a data room stage 1. However, this could cause confusion for investors and reduce the impact of crucial information. It’s also important to remember that not all data is equally important. Investors at stage 1 do not need to have access to cap tables or shareholder certificates.
Poor document structure
Before you upload your files onto a VDR, ensure that they are arranged and labeled appropriately. This makes it easier for the acquirer to understand the content and structure of your document. For instance, a standardized filing system with consistent file names, and the use of tags and indexing systems will make it easier for users to find documents. Also, using summaries and outline of key points will support users in understanding complex documents. Finally, establishing clear protocol for removing old files will reduce clutter and improve the overall user experience.
Overstating security
Some companies go overboard by claiming that their secure data rooms are highly secure. It’s like a food company boasting about the nutritional value of their cereal bar because it contains 0% fat while they should be focusing on whether the product is a good fit to the market it is intended for.