# Factory raises $200M at $5B valuation

> Factory has raised $200 million at a $5 billion valuation, more than tripling its $1.5 billion valuation from April. The financing brings its total funding to more than $400 million.

- Publication: Go Big News
- By Nifal Adam, Go Big News Staff (Staff News)
- Category: AI
- Published: 2026-09-23T08:49:10.207+00:00
- Canonical: https://www.gobignews.com/ai/factory-raises-200m-at-5b-valuation

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[Factory](https://factory.com) has raised $200 million at a $5 billion valuation to scale self-improving software development in enterprises. The company announced the financing in a post on X and a [blog post](https://factory.ai/news/5-billion-valuation).

The valuation is more than triple Factory's $1.5 billion mark from April. TechCrunch has noted that AI-assisted coding remains the most popular and lucrative use case for generative AI, and that investors evidently believe there is room for at least one more major player in the category.

The financing brings Factory's total funding to more than $400 million. Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, Sound Ventures, NEA, Mantis VC and Clearlake participated, according to the company. Factory did not name a single lead investor.

Factory named Nvidia, Blackstone, Royal Bank of Canada, Palo Alto Networks, Adobe and T-Mobile among its enterprise customers. Reuters reported that angel investors Nico Rosberg, Brad Gerstner and Marc Benioff also joined the round.

Founded in 2023 by Matan Grinberg and Eno Reyes, Factory sells AI software-development agents called Droids. The company says the agents work with any large language model and can be used through a command-line interface, integrated development environment, Slack, Linear or a browser.

Factory raised a $15 million Series A in June 2024 at a $120 million valuation, with Sequoia Capital leading and Lux Capital and Mantis VC participating. It later raised a $50 million Series B at a $300 million valuation. In April 2026, Factory raised a $150 million Series C at a $1.5 billion valuation, led by Khosla Ventures.

TechCrunch identifies Anthropic, through Claude Code, Cursor and Cognition as Factory's main competitors in AI-assisted coding.

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## Companies in this story

- Factory: https://www.gobignews.com/company/factory

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## X profiles in this story

- @factoryai: https://www.gobignews.com/profile/factoryai