Factory raised $150 million in a Series C round led by Khosla Ventures, while Keith Rabois joins the board. The round follows the company’s Series B just seven months earlier, delivering an approximately 5x valuation increase amid rapid enterprise traction for its autonomous Droid agents.
Factory has raised $150 million in a Series C funding round at a $1.5 billion post money valuation. The round was led by Khosla Ventures, with participation from Sequoia Capital, Blackstone, Insight Partners, Evantic Capital, Abstract Ventures, 20VC, NEA, and Mantis VC. Keith Rabois, managing director at Khosla Ventures, is joining the board. This follows the company’s Series B in September 2025, which raised $50 million at a $300 million valuation, representing a roughly 5x valuation increase in seven months.
What is Factory?
Founded in 2023 by CEO Matan Grinberg and Eno Reyes, Factory is building agentic AI for software engineering. Grinberg, who was pursuing a PhD in theoretical physics at UC Berkeley, cold emailed Sequoia investor Shaun Maguire with his idea; Maguire dared him to drop out and start the company, which Grinberg did. Sequoia backed the seed round and has remained involved. The company’s explicit mission is to bring autonomy to software engineering, producing software through parallel autonomous systems rather than line by line human coding, while keeping developers central. Factory positions its Droids as tools that enhance productivity, not replace people.
The flagship product is Droid, a fully autonomous software development agent that operates across the entire stack, from IDEs to CI/CD pipelines and beyond. Droids handle complex, real world tasks including large scale refactors, incident response, legacy migrations (e.g., COBOL and Fortran), technical debt cleanup, and end to end workflows from ticket creation to pull request. Key recent innovations include:
- Missions: A multi agent architecture supporting long horizon (weeks long), multi step collaboration with test driven development at multiple levels and dynamic context shaping for reliable autonomous execution.
- Factory Desktop: A native macOS and Windows application that gives Droids full system access and local context, enabling them to perform virtually any task a human could do on a computer.
The platform is deliberately model agnostic (dynamically routing tasks to the best or most cost effective model, such as switching from Claude during outages to GPT or Gemini) and interface agnostic (works with any dev tooling or workflow without forcing changes). It maintains top rankings on leading software development agent benchmarks and introduced Legacy-Bench specifically for evaluating performance on older codebases. Security, compliance, and enterprise governance are built-in priorities.
Traction has been exceptional. Droids are used daily by hundreds of thousands of developers at enterprises including NVIDIA, Adobe, Palo Alto Networks, EY, Adyen, and others such as Morgan Stanley. Enterprises are actively building “fully autonomous software factories” on the platform. Revenue has doubled month over month for each of the past six months, reflecting rapid enterprise adoption and expansion from simple code assistance into full spectrum automation. The company has assembled a high caliber team of engineers, researchers, and go to market leaders from leading organizations, selected for “clock speed and conviction.”
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The $150 million will accelerate three priorities: (1) research into next generation agent capabilities, (2) product development focused on optimized model routing and cost control, always-on agents, advanced enterprise governance, and quantitative measurement of agent readiness at scale, and (3) global go to market expansion. Factory’s leadership has described the last two years as a “desert period” of disciplined technical focus while competitors chased hype; this round validates that approach and provides the resources to scale aggressively.
In the broader AI coding and agent landscape, Factory differentiates itself by targeting enterprise scale autonomy rather than individual developer productivity tools. Many competitors focus on code completion or single model wrappers; Factory’s model and interface agnostic design future proofs it against shifts in foundation models while delivering measurable ROI through multi week autonomous workflows. The involvement of sophisticated investors like Khosla, Sequoia, Blackstone, and NEA, many of whom participated in earlier rounds, signals strong conviction that agent native development is becoming table stakes for Fortune 500 engineering organizations preparing for the next decade of AI driven transformation. Keith Rabois has framed the opportunity as helping large companies rearchitect their organizations around this wave, not merely incremental developer speedups.
This funding arrives at a moment of proven product market fit, explosive revenue growth, and clear technical leadership in a category poised for massive expansion. Factory is positioned to deepen its moat in enterprise autonomy, expand internationally, and continue iterating toward the vision of software produced by parallel autonomous systems, while keeping developers empowered at the center. The round marks Factory’s transition from a promising startup to a scaled player capable of shaping the future of software engineering at global enterprises.
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