The first step in constructing an effective dataroom is to decide on the structure. Create a primary folder index like “Finance,” and then create subfolders or topics to further organize documents. This will allow the buyer to quickly identify and understand the key business elements. Use consistent names for files to make navigation easier.
Once you have determined the document structure, uploading your files is simple. Many VDRs provide bulk uploading capabilities that allow you to upload hundreds of documents in a few clicks. Smart document viewer and search tools can also be useful for quick access.
Another thing to consider is how you will manage access for users. It is a good idea to create groups that can be granted specific permissions for the documents within the group. It is easy to regulate what documents are being viewed and for how long. You can also restrict printing and editing of certain sensitive documents.
Throughout the process of fundraising it is a good idea to send investors frequent updates to the data room. This will prove that you’re meeting your objectives and making progress. Updates could include information about investors milestones, milestones, and any new information that would be useful for the investor when conducting due diligence. This is an important step towards speeding up time to fund and reducing the amount of friction during negotiations. You can also add an area with references to your customers and referrals to highlight your impressive client base.