Factify is an Israeli startup that is building a new system to manage and verify digital documents, designed for the age of artificial intelligence.
The company has raised $63 million in seed funding. This round was led by Valley Capital Partners.
The funding included well-known leaders from technology and finance, such as John Giannandrea (former Head of AI at Google and Apple), Ken Moelis (Founder of Moelis & Co.), Peter Brown (CEO of Renaissance), and Shai Wininger (co-founder of Lemonade and Fiverr). Earlier, Factify raised $10.3 million in a pre-Seed round led by Sage.
Factify was founded in late 2023 by Professor Matan Gavish, who teaches at the School of Engineering and Computer Science at Hebrew University. The startup wants to move away from old PDF-style documents and create a new kind of digital document built for the AI age.
Professor Gavish has been developing this idea for more than 10 years. He started working on it during his PhD at Stanford University and published research on the concept as early as 2012.
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, so everything is done manually. To replace it, you have to rebuild the application infrastructure, the user interface, and the underlying systems. That requires significant development.”
The startup is already running paid pilot projects in heavily regulated industries, including banking, insurance, legal services, human resources, and operations. Legal teams use Factify’s documents to manage NDAs, control who can see sensitive information, and make sure everyone works on the correct version.
Operations teams use Factify to manage vendor onboarding and approvals directly inside the documents. This replaces messy workflows spread across emails, shared folders, and different disconnected systems, making the process simpler and more organized.
“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 “There are an estimated three trillion PDFs in the world today, yet the underlying infrastructure remains outdated.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
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