www.datastorage.blog/tools-for-evaluating-and-comparing-data-rooms/
The process of investing in startups often involves a significant exchange of information and documents, and it’s crucial that the data is secured and organized. This is where VDR for investors comes into play, allowing startups and other stakeholders to conduct due diligence with confidence and transparency.
It’s crucial to consider carefully how your VDR will be organized in particular, particularly when it’s an investor-only VDR. You need to categorize your the files based on the way they’ll be used by investors, and other parties involved in the process of investing. Your taxonomy shouldn’t just reflect your preferred arrangement but also be logical to them. It’s also a good idea to put a premium on intuitive admin dashboards, drag-and-drop uploads, and fine-tuned permission presets for easy modification.
It’s also a good idea only to include information that does not require a confidentiality contract (CDA). In the majority of cases personal correspondence or employee offer letters as well as office leases for small spaces should not be included in a VDR for investors unless they’re essential to the company’s growth or operating model. Don’t include any information that is protected by the attorney-client privilege. The inclusion of this sensitive information could result in legal troubles down the road. A great method to keep from sharing confidential information is by leveraging the document watermarking as well as viewing-only permissions features. You can track access metrics at a granular scale and avoid disclosures that are unnecessary. Furthermore, these features can help you build trust in your VDR for investors by ensuring that the information is private and only accessible by authorized users.