http://dataroomreview.org/4-steps-to-launch-your-own-functional-data-room/

Startups can benefit from virtual dataroom (VDR) in order to speed up the process of fundraising. This is done by providing the documents potential investors require. This could include comprehensive financial records, IP ownership documentation and detailed revenue projections. These documents, along with a pitch, could assist investors in deciding whether or not to invest in a business.

It’s important to remember that despite the ease of access that is offered by VDRs, it is important to remember that even though they are easy to access VDR due diligence should not be taken lightly. Founders should spend the time to properly organize and label folders and files, as well as use consistent metadata and naming conventions when uploading them. They should also take care to group related documents for each project or deal so that users can quickly find the information they require. It’s also important that access is restricted to the minimal amount of information required, and to regularly update the data room to reflect any updated or new documents. Old or outdated financial statements or contracts can mislead prospective investors and partners.

Finally, founders shouldn’t share selective metrics when creating their VDR presentation. For example when sharing retention or engagement data, it’s essential to share the entire metric, not just a subset of your most promising users. This practice can distract from the message that you are trying to convey, and may suggest you don’t understand your data. Share the data that is most important for your audience. This will keep viewers interested and will help them grasp the implications of the results.