Factify raises $73M to recast documents as intelligent, auditable objects

Factify announced a large seed round to fund a technical effort to rethink how business documents are built, shared, and trusted. The company argues that conventional file formats are brittle containers that lose context and control once they leave an organization, creating operational and security gaps. Its product replaces the traditional file model with a living document that carries a persistent identity, a built-in permission layer and a tamper-evident record of changes. The founders position this as infrastructure rather than an app—documents behave more like queryable services than inert blobs. That architectural choice is explicitly aimed at improving the inputs available to AI systems, which perform poorly when forced to interpret rendered pages instead of structured, verifiable data. To avoid the fate of past format replacements, Factify emphasizes strong backward compatibility so content can preserve familiar layout and workflows while gaining new controls. The company plans heavy engineering work to deliver a fresh on-disk format, a data layer that travels with content, and integrations with enterprise systems, and it is opening a U.S. operations hub to accelerate adoption. Investors led by Valley Capital Partners and several AI figures backed the round, signaling belief in both the technical thesis and the market opportunity. If the approach succeeds, enterprise processes that rely on provenance, selective sharing and real-time validation could be streamlined and more auditable. The biggest obstacles are behavioral inertia, incumbent platform ecosystems, and the challenge of achieving a de facto standard for archival and regulatory use. Factify’s strategy of incremental rollout—letting organizations apply the new format to high-value document classes first—reduces switching costs but still requires vendor and customer coordination. The outcome will hinge on execution: whether the company can deliver robust tooling, convince early adopters in compliance-heavy industries, and interoperate with existing content stores. The funding provides runway to build the core technology and enterprise integrations, but mainstream success will require standards work, partner buy-in, and demonstrable reductions in risk or cost. Observers should watch initial deployments for measurable improvements in access control, incident response and AI-readability, which will be the clearest indicators of commercial traction.