The importance of organizing documents and files has never been greater in light of the ever-increasing volume of data generated worldwide. This also applies to dataroom providers. If you have a lot of files in your VDR, it’s important to keep them organized for easy file sharing. The following is a description of everything you need to know about structuring a data room.
Make subfolders and top-level folders
Using top-level folders and subfolders to build a great data room structure is the most reliable method. Using this feature, you can organize your files by section, making it easier to search. There are a few possible top-level folders for the following subjects:
- Accounting
- Finances
- Legal
- HR and other people
There is no limit to the number of subfolders that can be found within a single top-level folder. The due diligence procedure is significantly facilitated by having a proper folder structure in the data room. All team members can simultaneously easily access the platform to find what they need. It also applies to traditional data rooms, which are currently somewhat less popular.
What your startup data room should contain?
It can be difficult to determine what should be incorporated in a VDR for startups. If you include too little, investors won’t have access to the information they need. If you include too much data, investors might become overwhelmed. You might want to include the following information in your startup data room:
- All past and current employee contracts, including titles and salaries
- All current and previous intern contracts
- All past and current contracts with consultants
- Pay scales, job titles, and the list of employees
Seeing the startup’s vision for the team it is building would be helpful to investors. By including onboarding documents, the fundraising process can also be strengthened by providing investors with insight into the hiring process and company culture.
Prepare your files and upload them
Verify that each document is current and pertinent prior to uploading it to the data room. During the M&A due diligence process, only relevant information must be used, so this may take some extra time. Documentation that is out of date is pointless and may even cost your company more money. Many online data room providers charge businesses for the storage they use, in contrast to physical data rooms. Because of this, it is essential to maintain relevance throughout.
You will be able to upload all documents to the VDR once they have been updated. It is possible to save some old documents, such as legal agreements or financial statements, but this will depend on the specific circumstances of your business. Always remember to organize everything in appropriate folders!
How can you find out how big your data room is?
Downloading the project index makes it possible to determine the size of your virtual data room. You must follow the same procedures as the section before it. You will see the following when you open the downloaded file:
- Types of documents
- Sizes of files
- Size of the data room as a whole, and more
The information may be presented in a different manner by other providers. Check out the technical support and knowledge base provided by your virtual data room provider to find a solution.