Investment in startups typically requires a lot of exchange of documents and data, and it's crucial that the information is protected and organized. This is the point where VDR for investors comes in, helping entrepreneurs and other stakeholders to conduct their due diligence with confidence and transparency.
It's important to think carefully about the way your VDR will be structured especially in the case of an investor-only VDR. You should categorize your the files based on how they'll be used by investors and other parties involved in the process of investing. Your taxonomy should not just reflect your preferred arrangement, but also make sense for them. It's also a good idea to prioritize intuitive admin dashboards, drag and drop uploads and fine-tuned permissions to allow for easy customization.
Finally, it's an ideal practice to include information that does not require the signing of a confidentiality agreement (CDA). In the majority of instances, personal correspondence or employee offer letters as well as office leases for small spaces should not be included in the VDR for investors unless they are essential to the company's expansion or operating model. Also, you shouldn't include any information that is protected by attorney/client privilege. This kind of sensitive information could cause legal problems down the road. It is possible to avoid sharing confidential data by using document watermarking feature and the access-only permissions in a virtual dataroom. You can monitor access metrics on a granular scale and avoid disclosures that are unnecessary. These features can also aid in building trust with investors of your VDR by indicating to them that the data will only be viewed and access by authorized users.
www.datastorage.blog/tools-for-evaluating-and-comparing-data-rooms/