https://otherboardroom.com/board-software-pricing-hidden-costs-and-budgeting-tips/
A secure, easy-to-use virtual data room is essential for any startup hoping to accelerate its fundraising process. But establishing an effective VDR isn’t without problems. Most common mistakes can be avoided by making sure that the following best practices are in place:
Too many details
It’s tempting to include every piece of relevant data that you need to provide in the stage 1 data room, however this can be distracting for investors and may dilute the impact of important information. Be aware that not all of the data are equally important. Investors in stage 1 don’t have to have access to cap tables and shareholder certificates.
Poor document structure
Before you upload your files to a VDR ensure that they are organized and labeled appropriately. This will allow users to understand the content and structure documents more quickly. Users will find it easier to locate files if they use an established filing system with consistent file names and tagging or indexing systems. Summaries and outlines will help users comprehend complex documents. Finally, establishing clear protocols for removing outdated documents will help to reduce unnecessary clutter and improve overall user experience.
Overstating security
Some companies go overboard with the claim that their safe data rooms are secure. It’s like a food producer boasting about the nutritional value of their cereal bar since it has zero fat when they should be focusing on whether the product is suitable for the market it’s intended to serve.