Factory Raises $200 Million at a $5 Billion Valuation to Scale Self-Improving Software Development in the Enterprise

New funding comes amid rapidly growing demand from global enterprises to build their own software factories.

SAN FRANCISCO--(BUSINESS WIRE)--Factory, the global leader in self-improving software development, today announced a $200 million financing from Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, Sound Ventures, NEA, Mantis VC, Clearlake, and angel investors including Nico Rosberg, Brad Gerstner, and Marc Benioff. The round values the company at $5 billion, over triple its previous valuation of $1.5 billion in April, and brings its total funding to over $400 million. The funding follows rapid enterprise adoption, with Factory now used by hundreds of thousands of developers across global enterprises including Nvidia, Blackstone, Royal Bank of Canada (RBC), Palo Alto Networks, and Adobe.

Factory was founded in 2023 by Matan Grinberg and Eno Reyes with a mission to bring autonomy to software engineering and create a world where software builds and improves itself.

Rather than stitching together fragmented tools and standalone agents, enterprise teams using Factory govern a single, trusted system across the entire software development lifecycle. Factory gives enterprises sovereign intelligence: control over how their software factory learns, which models it uses, and where it runs, whether deployed across Factory managed cloud, customer on-premises, or fully air-gapped environments. Visibility into readiness, effectiveness, and ROI keeps that system aligned with business goals. A single governable system that frees teams to focus on the work that matters most.

“Across the world’s largest enterprises, we are seeing a move from individual coding agents to software factories that serve as the core foundation from which an entire software company operates,” said Matan Grinberg, co-founder and CEO of Factory. “The adoption and results our customers are seeing validate the opportunity to rebuild the entire software development system, and we are still at the beginning.”

To learn more about how Factory is changing software development for the enterprise, visit factory.com.

About Factory

Factory is the global leader in self-improving software development. The Factory platform enables enterprises to operate their own autonomous software factory: a trusted system that runs 24/7 to build software under their control, with humans governing measurable outcomes. Customers include Nvidia, Blackstone, Palo Alto Networks, Adobe, and more. Factory was founded in 2023 by Matan Grinberg and Eno Reyes and is headquartered in San Francisco. Investors include Blackstone, Khosla Ventures, Sequoia Capital, NEA, Nvidia, J.P. Morgan, and Insight Partners. To learn more, visit factory.com.