Factory, a San Francisco company that builds AI agents for enterprise software engineering, said on September 15, 2026 that it had raised $200m at a $5bn valuation. The round takes its total funding to more than $400m.
Investors included Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners and Evantic Capital, with Sound Ventures, NEA, Mantis VC and Clearlake also taking part. Factory did not name a lead investor. The Next Web reported that angel investors include Nico Rosberg, Brad Gerstner and Marc Benioff.
The new valuation is more than three times the $1.5bn Factory was valued at in April, according to The Next Web, and Runtime Wire noted that it came about five months after the company's previous round.
“Across the world's largest enterprises, we are seeing a move from individual coding agents to software factories”Matan Grinberg, Co-founder and CEO, Factory
What Factory does
Factory was founded in 2023 by Matan Grinberg, its chief executive, and Eno Reyes, with the stated aim of bringing autonomy to software engineering. Its agents work across the software development process, helping enterprises build, test and maintain code.
In April the company launched Factory 2.0, which shifted its platform from individual coding agents towards what it calls self-improving software factories that enterprises can control, trust and measure. Recent additions include Factory Router, which picks a model automatically for each task and which the company says cuts token spending by more than 60% without losing frontier performance, and Agent Effectiveness, which shows enterprises what their AI spending produces.
The platform can run in the cloud, on premises or in fully air-gapped environments. Factory named Nvidia, Blackstone, Royal Bank of Canada, Palo Alto Networks, Adobe and T-Mobile as customers and said hundreds of thousands of developers use its product. It has not disclosed revenue or headcount.
Who invested
Blackstone appears both as an investor and as a customer. Sequoia Capital, Khosla Ventures and Insight Partners were among the backers named in the announcement, alongside Evantic Capital, Sound Ventures, NEA, Mantis VC and Clearlake.
Grinberg told The Next Web that the company was seeing large enterprises move "from individual coding agents to software factories", and that customer adoption supported the case for rebuilding the whole software development system.
The funding so far
According to Runtime Wire, Factory's earlier funding included a $5m seed round backed by Sequoia and Lux, a $15m Series A backed by Sequoia, a $50m Series B and a $150m round in April. The Next Web put the April valuation at $1.5bn.
Factory said the new money will go into research, product and its global go-to-market effort.
A crowded market for AI coding
Factory operates in a busy field of AI coding companies; The Next Web pointed to Cognition, the maker of Devin, and CodeRabbit among others in the market. Factory's own pitch is aimed at enterprises that want to run many agents under central control, with model routing and spending visibility built in.
The company said it believes the future of software is autonomous and self-improving. Runtime Wire calculated that its valuation had risen nearly 16.7 times in under a year.
Company website: factory.com