Step #1: Select format and tool

• Make your data room accessible from anywhere, on any device, by using cloud services. Recommended to use Google Drive, Notion, or Dropbox. There are some other options as well, but they can be costly.
• Provide access to your Data Room on demand. It’s easier to control the inbound pipeline of investors interested in your startup, plus it creates a sense of FOMO for other VCs (as they see that their competitors are also checking the data room).
• Save your time: provide some information upon request only. Do not allow easy riders to waste your time with a ton of questions.

Step #2: Build structure

• The amount of data in your data room depends on your startup's stage (Pre-Seed, Seed, or Series A). A data room at the Pre-Seed stage can impress VCs by showing you've done your homework. At Series A, it is a document without which you can’t close the round.

• Create a folder structure that is clean and easy to navigate. Split your folders into 2-3 groups: General, Misc, and Other. Remember, investors' time is valuable, so make sure your structure is as simple as possible.

• Provide a choice for investors: video or text format. Keep in mind that most of them do not have a lot of time to dive into your data room.

• Read more about core documents here.

• The classic Seed data room includes the following data:

  https://docs.google.com/spreadsheets/d/1Lw0DSmA23_ZLkJW7-U46IrCZX_o1u0ic_yCJzaNugMo/edit?usp=sharing

Step #3: Build, get feedback, repeat

• If you want to build a well-made Data Room, ask other founders from your domain what information investors pay the most attention to.
• Create an update cadence. Once a month, once a quarter. Whatever your goals are, make sure documents are fresh.
• Make sure you do not share code or any proprietary information (such as high-value sales prospects) or trade secrets in your data room.