The most important step in creating a data space is to determine your structure. Begin by creating a basic folder index for the deal such as “Finance,” then create subfolders and topics to further arrange your documents. This will help buyers quickly understand and identify the main components of your business. It is also recommended to use consistent file names for ease of navigation.
Once you have determined the structure of your document, transferring your files is a breeze. Many VDRs offer bulk upload capabilities which allow you to upload hundreds of files with just a few clicks. Smart document viewer and search tools can also be useful for quick access.
You should also consider the way you control access to users. It is a good idea to create groups that can be given specific access rights to the documents within the group. It is simple to control what documents are viewed and for how long. You can limit printing and editing of sensitive documents.
It is a good practice to keep investors informed of the fundraising process by sending them frequent updates via the data room. This will show that you’re progressing and reaching your goals. Updates could include updates from investors, milestone achievements and new data that would be useful to the investor during due diligence. This can be a critical step towards speeding up funding timelines and reducing the friction during negotiations. You can also include an area that lists customer references and referrals to showcase your solid client base.