Factory raises $200M at a $5B valuation for enterprise coding agents

Factory said it raised $200 million at a $5 billion valuation to scale self-improving software development for enterprises. The round brings total funding to over $400 million.

Same-day FINANCE primary that enterprise coding-agent platforms are still raising mega-rounds even while frontier labs talk about slowing model races — a discrete $200 million / $5 billion event with named backers.

Factory announced it raised $200 million at a $5 billion valuation. A valuation here is what investors imply the whole company is worth after the new money. The company PRIMARY is Factory’s newsroom post “Factory raises $200M at $5B valuation,” dated September 15, 2026, and signed by Matan Grinberg and Eno Reyes. Reuters’ independent same-day dispatch, by Pragyan Kalita in Bengaluru, is the same calendar window. Those two pages are the filing event. The company post does not name a Series letter for this round. These are company and Reuters claims. This desk did not see the term sheet.

Investors named by the company: Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, Sound Ventures, NEA, Mantis VC, and Clearlake. Factory says the raise brings total funding to over $400 million, and that it will use the capital for research, product, and global go-to-market. Reuters independently names Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, and Sound Ventures among the backers. File the $200 million, the $5 billion valuation, those named investors, the more-than-$400 million total, and the use of proceeds as Factory’s, with Reuters as independent corroboration of the raise, the valuation, and the named backers it printed. This desk is not inventing a Series letter, an ownership percentage, or a check size. None was printed on today’s company page.

Founding and mission, as Reuters and the company tell it: Factory was founded in 2023 by Matan Grinberg and Eno Reyes. Reuters places the company in San Francisco. The company says its mission is to bring autonomy to software engineering and create a world where software builds and improves itself. File the 2023 founding, the two named founders, the San Francisco base, and that mission line as Reuters’ or Factory’s as named. This desk did not audit the bios.

Product, as the company tells it: the Factory platform — Droids, in Factory’s own product language — for the enterprise software development lifecycle, meaning the full path from writing code to testing, shipping, and maintaining it. Teams using Factory, the company says, govern one system across that lifecycle instead of stitching together standalone agents. Factory says enterprises control how the system learns, which models it uses, and where it runs — cloud, on-premises, or fully air-gapped. Air-gapped here means systems that do not connect to the public internet, common in regulated or high-security shops. In April the company says it announced Factory 2.0, moving from individual coding agents into software factories, launched Factory Router for automatic task-level model routing, enabled air-gapped and high-security deployments, and introduced Agent Effectiveness so enterprises can see the measurable value of their AI spend. File that product picture as Factory’s. This desk did not run a Droid.

Customers named on the same company page — attribute, do not independently certify: Nvidia, Blackstone, Royal Bank of Canada (RBC), Palo Alto Networks, Adobe, and T-Mobile. Factory also says it is used by hundreds of thousands of developers in the world’s most important businesses. File those names and that developer-count line as Factory’s. This desk did not count developers or interview the customers.

Token-spend claim, still company — attribute, do not desk-audit: Factory Router’s automatic task-level model routing is described as “cutting token spend by more than 60% while maintaining frontier performance.” Token spend is the bill for AI model usage. File the more-than-60% line as Factory’s. This desk did not meter tokens or rerun a routing test.

Reuters context, attributed: Factory competes with AI coding platforms such as Cognition and Cursor. The same wire says Factory raised $150 million at a $1.5 billion valuation in April. Factory’s own April 16, 2026 Series C newsroom post matches that $150 million / $1.5 billion pair and names the April round a Series C led by Khosla Ventures. File the compete line as Reuters’. File the April $150 million / $1.5 billion as Factory’s Series C page plus Reuters. This desk is not inventing a Series letter for today’s $200 million raise, and it is not treating Cognition’s or Cursor’s valuations as Factory facts.

Plain English for the rest of the card: valuation = what investors imply the whole company is worth after this round. Token spend = the bill for AI model usage. Air-gapped = systems that do not connect to the public internet. SDLC / software development lifecycle = the path from writing code to testing, shipping, and maintaining it. Droids = Factory’s name for its coding agents. Factory Router = the company’s automatic, task-level model picker.

PRIMARY here: Factory’s 15 Sep 2026 company newsroom — Tier A PRIMARY company source, the original record — plus Reuters’ same-day independent Tier B corroboration. The April Series C newsroom is prior-round background, not today’s originating announce. The $200 million raise, the $5 billion valuation, the named investors, the more-than-$400 million total, the research / product / go-to-market use of proceeds, the 2023 Grinberg / Reyes founding, the autonomy / self-improving-software mission, the Factory platform / Droids / Factory Router / Agent Effectiveness / air-gapped picture, the named customers, the hundreds-of-thousands-of-developers line, and the more-than-60% token-spend claim are company- or Reuters-attributed as named. Customer names and the 60% token-spend cut stay company-attributed. The April $150 million / $1.5 billion stays Series C page plus Reuters. NOT claimed: a Series letter for today’s round, ARR, revenue, headcount, independently verified customer or token-spend figures, Cognition or Cursor valuations as Factory facts, that this desk tested Droids or saw a term sheet, a stock tip, or investment advice. Distinct from the already-filed liquid-compute-15m-seed, profound-180m-series-d, decimal-ai-4m-seed, salesforce-koa-nemotron, branch-energy-33m-series-b, euclyd-200m-series-a, alphapai-50m-series-b, aiuc-40m-series-a, and openevidence-penn-medicine.