Factory, a startup founded in 2023 by Matan Grinberg and Eno Reyes, has secured $200 million in a new funding round. This investment brings the company's total valuation to $5 billion, a significant increase from the $1.5 billion valuation reported five months ago. The company has now raised over $400 million in total capital.
The latest funding round was supported by Khosla Ventures, Blackstone, and Sequoia Capital. Individual investors, including Salesforce CEO Marc Benioff, Altimeter Capital founder Brad Gerstner, and investor Nico Rosberg, also participated. This round follows a series of capital injections, including a $150 million Series C in April and a $120 million extension in July.
Factory develops AI agents known as Droids, which are designed to handle coding, testing, documentation, and deployment for enterprise engineering teams. The platform is model-agnostic, allowing it to switch between providers like Anthropic’s Claude and DeepSeek. Its client list includes major corporations such as Nvidia, Adobe, Morgan Stanley, and Ernst & Young.
The market for AI coding tools is experiencing rapid growth, with projections suggesting it could reach $26 billion by 2030, up from $4.9 billion in 2023. Factory is positioning itself to capture this demand by focusing on platforms that manage entire engineering workflows rather than individual developer assistance.
