Factory Raises $150M at $1.5B Valuation to Build AI Coding Agents for Enterprises

Factory, the startup building autonomous AI agents for enterprise software teams, closed a $150 million Series C on April 16 at a $1.5 billion valuation. Khosla Ventures led the round, with Sequoia Capital, Insight Partners, and Blackstone also participating. Keith Rabois, a managing director at Khosla, joined the board.

The company was founded three years ago by Matan Grinberg with the goal of automating software engineering at scale. It’s now at unicorn status, and it reports revenue has doubled month over month for the past six months.

What Factory Builds

Factory’s product is called Droids, autonomous agents that handle tasks across the full development lifecycle: code generation, testing, review, documentation, and deployment. The pitch is not “AI autocomplete” but “AI that does the whole job.”

Droids are model-agnostic. They can switch among foundation models, including Claude, DeepSeek, and others, based on what fits the task. They also work across interfaces: Terminal, Slack, Linear, and the web. Factory’s Terminal-Bench leaderboard score of 58.75% puts Droid at the top of that benchmark.

Enterprise customers using Factory include Nvidia, Adobe, EY, Palo Alto Networks, Adyen, MongoDB, Bayer, Zapier, Clari, Bilt, Profound, and Rogo.

The Enterprise Pitch

Rabois framed the opportunity around Fortune 500 companies, not individual developers: “real value lies in enterprise-wide adoption and measurable productivity gains rather than marginal individual developer improvements.”

That’s a direct contrast to how most AI coding tools have grown, winning individual developers first and working up to team licenses. Factory is betting that enterprises will buy AI agents the same way they buy any other software infrastructure, at the team or org level, evaluated on output rather than developer satisfaction scores.

Competition

Factory competes directly with GitHub Copilot, Cursor, Claude Code, Cognition’s Devin, and other agentic coding products. Its differentiation is the full-lifecycle scope and the model-agnostic architecture, which avoids vendor lock-in arguments that enterprise procurement teams often raise.

The AI coding market has been consolidating around a few approaches: IDE-native tools (Cursor, Windsurf), cloud agents paired with existing IDEs (GitHub Copilot, Claude Code), and fully autonomous agents (Devin). Factory is in the third camp, but positioned explicitly for enterprise deployment rather than individual use.

Context

The funding comes during a period of heavy investment in agentic software development tools. Factory’s raise follows Cognition’s $2.4 billion Google talent acquisition and GitHub Copilot’s expansion into enterprise compliance features. The common thread across all of them is a shift from assistance to autonomy: tools that don’t just suggest code, but write it, test it, and ship it.

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Sources: TechCrunch, Factory.ai, April 16, 2026.