San Francisco-based startup Factory has secured $200 million in a new funding round, bringing its valuation to $5 billion. This figure represents a more than threefold increase from the $1.5 billion valuation recorded in April 2026.
Founded in 2023, the company has seen rapid financial growth. In April, it raised $150 million in a Series C round, followed by a $120 million Series C-2 extension in July at a $4 billion valuation. Total funding is estimated between $220 million and $327 million.
Factory develops autonomous AI agents known as Droids, designed to manage end-to-end software engineering workflows such as incident response, testing, and code refactoring. The platform is model-agnostic and integrates with existing developer tools like Slack, Linear, and various CI/CD pipelines.
The company's client base includes Nvidia, Adobe, Morgan Stanley, and Ernst & Young. Investors backing the startup include Khosla Ventures and Blackstone. Factory plans to expand internationally with new offices in London and Tokyo.
