California-Based Factory Raises $200M in Funding

The round saw backers including Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, Sound Ventures, NEA, Mantis VC, Clearlake, Nico Rosberg, Brad Gerstner, and Marc Benioff.

The company plans to use the funding to expand its operations and development efforts.

What is Factory?

Factory provides a software development platform that helps enterprise teams manage software development through a single system rather than using multiple disconnected tools and AI agents.

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The platform allows companies to control how their software development system learns, which AI models it uses, and where it operates. It can run through Factory-managed cloud infrastructure, customer on-premises environments, or fully air-gapped deployments.

The platform also provides visibility into software readiness, effectiveness, and return on investment.

How Much Funding Has Factory Raised?

Factory has raised $200 million in its latest funding round, bringing its total funding to more than $400 million.

The company is valued at $5 billion following the latest round.

No previous funding rounds or dates were provided.

Who Invested in Factory’s Funding Round?

The funding round included:

• Blackstone
• Khosla Ventures
• Sequoia Capital
• Insight Partners
• Evantic Capital
• Sound Ventures
• NEA
• Mantis VC
• Clearlake
• Nico Rosberg
• Brad Gerstner
• Marc Benioff

Why the Funding Matters

Factory plans to use the new funding to expand operations and development efforts.

The company is focused on building autonomous software development systems that enterprises can operate and govern according to their own requirements.

Who founded Factory?

Factory was founded in 2023 by Matan Grinberg and Eno Reyes.

The company is headquartered in San Francisco, California.

Market and Business Growth

Factory's customers include Nvidia, Blackstone, Palo Alto Networks, and Adobe.

The company's platform is designed to operate continuously and help enterprises build software while maintaining control over their AI models, infrastructure, and development processes.

What Happens Next?

Factory will use the new capital to expand its operations and continue developing its software development platform.

The company will focus on expanding its autonomous software factory capabilities for enterprise customers.

“Across the world’s largest enterprises, we are seeing a move from individual coding agents to software factories that serve as the core foundation from which an entire software company operates,” said Matan Grinberg, co-founder and CEO of Factory.

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