The software development agent start-up has seen its valuation rise from 1.5 to 5 billion since April, backed by Blackstone, Khosla, Sequoia and Insight Partners.
In mid-September, Factory announced a $200 million fundraising, bringing its valuation to $5 billion, compared to $1.5 billion in its April Series C. The trajectory is based on three close operations: $150 million in April to $1.5 billion, an extension from $120 million in July to $4 billion, and then this round to $5 billion. The total raised by the company now exceeds $400 million.
Founded in 2023 by Matan Grinberg and Eno Reyes, the San Francisco-based company sells engineering teams a platform of autonomous agents called "Droids", designed to support complete sequences of the software lifecycle: incident response, refactoring, testing, maintenance. The business case is less about code generation and more about eliminating context switches that an engineer usually chains between half a dozen tools.
The round brings together Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital and Sound Ventures, with Salesforce boss Marc Benioff, Altimeter Capital founder Brad Gerstner and former Formula 1 champion Nico Rosberg as individual investors. Factory is positioned against Cognition and Cursor, in a segment where valuations are growing faster than revenues.
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