Factory has secured $150 million in Series C funding at a $1.5 billion valuation, with Khosla Ventures leading the round. Other investors include Sequoia Capital, Insight Partners, Blackstone, Evantic Capital, Abstract Ventures, 20VC, NEA, and Mantis VC.
Founded in 2023 by Matan Grinberg and Eno Reyes, Factory developed “Droids,” AI agents that do more than just generate code. They also handle testing, review, documentation, and deployment throughout the software development process.
The company says that hundreds of thousands of developers at organisations like Nvidia, Adobe, EY, Palo Alto Networks, Adyen, MongoDB, Bayer, and Zapier use Droids every day. Factory tells its enterprise clients that AI agents are only as effective as the infrastructure behind them.
Reliable operation depends on thorough documentation, test coverage, CI/CD pipelines, and integration with internal tools. Factory calls this approach “paving the roads” and sees itself as the company that builds this foundation, not just the one delivering the final product.
One thing that sets Factory apart is its model-agnostic approach. Grinberg points out that the platform can switch between foundation models such as Anthropic’s Claude and DeepSeek, which he sees as a major advantage. While competitors such as Cursor also support multiple models, Factory believes that enterprises need more complete orchestration across their technology stack, not just flexible code generation.
Factory’s revenue has doubled every month for the past six months, which helps explain the high valuation. The new funding will go toward research, product development, and expanding internationally.
