Virtual data rooms can be a beneficial tool for businesses who want to share confidential data in a secure manner. They are utilized in M&As, investment banking and other collaborations that require protection of intellectual assets. However, a virtual data room is not just a place to store data – it also provides a number of other features that make it an invaluable asset for any business.

Virtual data rooms, for instance provide a robust search feature that allows users to to locate the information they require in documents of different formats. They also may have document processing capabilities that convert typed or handwritten documents, paper-based ones and text saved as images to a digitally intelligible format. They can be programmed to help workflows, automate processes, and track actions.

Another benefit of a virtual data space is its ability to support due diligence procedures. Due diligence is the thorough examination of documents prior to when a company completes an acquisition, or raises funds. A virtual dataroom can assist both parties complete this process quickly and efficiently.

Finally virtual data rooms typically feature live chat and other collaborative tools that allow teams to communicate with one others in real-time. This increases team efficiency and ensures that all pertinent information is accessible when needed. This can prevent confusion and problems with version control particularly when team members are located in different workplaces or locations.