Startup Founder Matan Gavish Aims to Eliminate Paperwork with AI-Powered Smart Documents

Matan Gavish, a world-renowned academic and former Stanford doctoral student, is spearheading a mission to replace the traditional PDF format with AI-driven smart documents through his startup, Factify. Founded in 2023, the Tel Aviv-based company recently secured 63 million dollars in Seed funding to develop an automated bureaucracy infrastructure that allows documents to communicate, extract data, and fill themselves out without human intervention.

By: AXL Media

Published: Feb 16, 2026, 5:35 AM EST

Source: Information for this report was sourced from CTech by Calcalist

Redefining the Digital Document for the Agentic Economy

Factify is positioned as a disruptive force in document-heavy industries such as insurance, healthcare, and banking, where paper-based processes have remained largely unchanged for three decades. CEO Matan Gavish describes the current reliance on static PDFs as a "dybbuk," which he defines as an outdated spirit haunting the modern digital world. His vision is to transform the documentary experience by creating intelligent files that function similarly to a streaming service like Spotify, where data organizes itself based on user needs.

The core technology relies on AI agents capable of extracting personal data, such as ID numbers and addresses, from existing valid contracts and historical paperwork to automatically complete complex forms. Gavish envisions a future where tax returns and insurance renewals activate and submit themselves, freeing human workers from the burden of manual data entry and totalizing receipts.

Building a Tesla of Documents from Scratch

Unlike many startups that attempt to adapt existing software, Factify is building its entire architecture from the ground up, a strategy Gavish compares to how Tesla reinvented the car. This comprehensive approach involves creating a new database infrastructure, a proprietary user interface, and a novel way of presenting documents to both humans and machines. The goal is to establish Factify as the global standard for document exchange within the next five years.

This ambitious scope has attracted significant capital, including a 10.3 million dollar pre-Seed round followed by a massive 63 million dollar Seed round. Investors include Silicon Valley veterans such as John Giannandrea, formerly of Google and Apple, and Ken Moelis, founder of Moelis & Company. Lead investor Valley Capital Partners noted that they were drawn to the idea's potential to create entirely new markets in the automation of bureaucracy.