Factify raises $63 million in Seed funding to kill the PDF and build a new document standard for AI
The Israeli startup aims to replace static PDFs with intelligent records that allow AI to take charge of business documents.
Factify, an Israeli startup developing a new infrastructure for digital documents in the AI era, announced it has raised $63 million in a Seed funding round. The round was led by Valley Capital Partners and included participation from leading figures in technology and finance, such as John Giannandrea, former Head of AI at Google and SVP of AI at Apple, Ken Moelis, Founder of investment bank Moelis & Co., Peter Brown, CEO of legendary hedge fund Renaissance, and Shai Wininger, co-founder of Lemonade and Fiverr. The company had previously raised $10.3 million in a pre-Seed round led by Sage.
Founded in late 2023 by Professor Matan Gavish, a faculty member at the Hebrew University’s School of Engineering and Computer Science, Factify aims to replace the decades-old PDF-based document model with a network-native digital document designed for the AI era. Gavish has been working on the concept for over a decade, publishing research during his PhD at Stanford University as early as 2012.
In an interview with Calcalist, Gavish explained the challenge Factify is addressing: “The PDF file is essentially a computerized version of Gutenberg’s invention. It does not understand the digital world, and everything around it is done manually. To replace it, you have to rebuild the application infrastructure, the user interface, and the underlying systems. That requires significant development.”
Factify’s platform allows digital documents to remain managed and controlled wherever they go, with embedded identity, access permissions, and context. Unlike static PDFs, these documents are designed to work seamlessly with AI agents, creating a direct, secure, and trackable workflow for organizations.
The startup is already running paid pilots in highly regulated sectors, including banking, insurance, legal services, human resources, and operations. Legal teams are using Factify documents to manage non-disclosure agreements, limit access to sensitive information, and track authoritative versions. Operations teams are using the platform to handle vendor onboarding and approvals directly within documents, replacing fragmented processes across emails, shared folders, and disconnected systems.
“The digital document management landscape hasn’t changed in decades,” Gavish said. “There are an estimated three trillion PDFs in the world today, yet the underlying infrastructure remains outdated. Point solutions such as e-signature systems or version control don’t solve the fundamental problem: the document itself doesn’t know which version is latest, who accessed it, or which source is authoritative. In an AI-driven world, that becomes a significant risk.”
Gavish emphasized that Factify’s focus is on enterprise adoption rather than consumer products. “We sell to organizations for money, not for free. We’re narrowing down the offering to the product that will deliver the breakthrough. Our goal is to be the industry standard, following in the footsteps of the PDF, but with a system designed for AI agents rather than humans,” he said.
