Factory Announces $150 Million Series C at $1.5 Billion Valuation

Gunderson Dettmer represented Factory, a startup developing AI agents for enterprise engineering teams, in its $150 million Series C financing, valuing the company at $1.5 billion. The round was led by Khosla Ventures, with participation from Sequoia Capital, Insight Partners, and Blackstone. 

Factory is building a platform for agent-native development, where software is produced by autonomous systems operating in parallel rather than written line by line. The new capital will allow the company to begin the next phase of the platform that will focus on optimized model routing and cost control, always-on agents, advanced enterprise-grade governance, and real measurement of agent readiness and effectiveness at scale. 

“We started Factory three years ago with a single mission: bring autonomy to software engineering,” said Factory co-founders Matan Grinberg and Eno Reyes, in the announcement of the transaction. “Today, Droids are used daily by hundreds of thousands of developers across enterprises including Nvidia, Adobe, EY, Palo Alto Networks, and Adyen. For each of the past six months, we've doubled revenue month over month. Enterprises worldwide are building fully autonomous software factories on our platform, designed to work with any model, any interface, and every stage of development.” 

The Gunderson deal team was led by Jared Grauer and included Adam Spaulding, Kevin Mann, and Derek Shao.