Categories: Technology / Startups

Factify Raises $63 Million Seed to Kill the PDF and Build a New Document Infrastructure for the AI Era

Factify Raises $63 Million Seed to Kill the PDF and Build a New Document Infrastructure for the AI Era

Factify Secures $63 Million Seed to Redefine Digital Documents

Factify, an Israeli startup on a mission to overhaul how we create, share, and manage documents, announced a $63 million seed funding round led by Valley Capital Partners. The round also featured participation from notable investors and industry veterans who see a future where PDFs and static documents give way to dynamic, AI-powered digital documents. In a market long dominated by the venerable PDF format, Factify plans to introduce a scalable infrastructure designed for the AI era, enabling richer collaboration, better data extraction, and more versatile workflows.

Why Factify Thinks the PDF Era Is Ending

The PDF format has served as a universal document standard for decades, prized for its fidelity across devices. But in an age of AI, analytics, and automated workflows, PDFs often become bottlenecks. Factify argues that static documents hinder real-time collaboration, robust data governance, and machine-readability. The startup’s thesis is simple: replace or augment PDFs with an adaptable, AI-friendly document fabric that preserves human readability while opening new possibilities for machines to understand, verify, and act on content.

The Seed Round — What It Signals

A seed round of this size underscores growing investor confidence in a new layer for digital documents. Led by Valley Capital Partners, the funding signals that top-tier investors are prioritizing infrastructure-level innovations over consumer-focused software in the AI era. Factify plans to use the capital to accelerate product development, expand its engineering and R&D teams in Israel, and begin early pilot programs with enterprises across regulated industries such as finance, healthcare, and legal services. The company also intends to build out core features that will allow organizations to retain control over document provenance, access rights, and version history while enabling powerful AI-driven insights.

What the New Document Infrastructure Could Look Like

Factify’s approach centers on constructing a modular, secure fabric for digital documents. Key components likely include:
– Dynamic document models that support structured data, semantic tagging, and machine-readable metadata.
– Advanced compliance and provenance tooling to track edits, authorship, and access permissions across distributed teams.
– AI-native capabilities for content extraction, summarization, translation, and redaction without breaking document integrity.
– Seamless integration points with existing enterprise tools such as document management systems, CRM platforms, and collaboration suites.

Implications for Enterprises and Knowledge Work

For enterprises, the promise of a next-generation document infrastructure is clear: faster onboarding of information, better interoperability between systems, and stronger governance for sensitive data. In regulated industries, where audit trails and compliance are non-negotiable, Factify’s architecture could simplify reporting, risk management, and regulatory reviews. For knowledge workers, the ability to query, remix, and reuse content with AI assistance could shorten project cycles, improve decision quality, and reduce manual data entry.

Timeline and Roadmap

With seed funding in place, Factify aims to roll out its initial platform beta to select customers within the next 12 to 18 months. Early adopters will likely be drawn from sectors that already echo a push toward digital transformation and AI-powered workflows. The company envisions a scalable, enterprise-grade solution that can evolve as AI capabilities advance, ensuring that the new document infrastructure remains adaptable to future regulatory and technology shifts.

About Factify

FactifyPositioned as a pioneer in the AI-enabled document space, Factify is pursuing a long-term vision to “kill the PDF” by creating a flexible, secure, and intelligent document layer for the modern era. The seed round highlights the strategic importance of document infrastructure in enabling reliable data-driven operations, accelerated collaboration, and compliant AI use across industries.

What This Means for the Market

As AI models become better at understanding text and extracting structured data, the demand for machine-friendly document formats will grow. Factify’s seed funding could catalyze a broader shift toward open, interoperable document ecosystems. Competitors and collaborators alike will watch key milestones: platform stability, enterprise integrations, and measurable improvements in efficiency and governance.