Factory

AI Coding Agents · Enterprise Software · Developer Tools

Funding

Factory triples valuation to $5B as AI coding startup raises $200M

Enterprise buyers are paying up for security and model-routing controls that let large companies trust autonomous coding agents.

• Factory raised $200 million in new financing that values the AI coding-agent startup at $5 billion, more than tripling the $1.5 billion valuation it held just five months earlier.
• Founded in 2023 by Matan Grinberg and Eno Reyes, Factory builds AI agents that write, test and maintain software across the full development lifecycle for enterprise engineering teams.
• Factory's platform includes a router that automatically assigns coding tasks to different AI models, which the company says cuts token spend by more than 60% while preserving performance.
• Factory's valuation has climbed roughly 17x in under a year, from a $300 million mark at its Series B in September 2025 to $5 billion today.
• The round lands weeks after rival Cognition raised $2 billion at a $48 billion valuation, underscoring how much capital is chasing AI coding agents right now.
• The jump signals investors now see enterprise governance, security and deployment control—not just raw coding ability—as the defensible layer in AI-driven software development.