Factory announced it has raised $150 million in a Series C funding round led by Khosla Ventures, with participation from Sequoia Capital, Blackstone, Insight Partners, Evantic Capital, 20VC, NEA, and Mantis VC, bringing the company’s valuation to $1.5 billion.
The new capital will be used to accelerate investment in research, product development, and global go-to-market efforts as Factory scales its platform for autonomous software engineering.
Founded three years ago with the goal of bringing autonomy to software development, Factory has built a platform centered around “Droids,” AI-driven agents that automate software engineering tasks. The company says its technology is now used daily by hundreds of thousands of developers across enterprise customers including Nvidia, Adobe, EY, Palo Alto Networks, and Adyen.
Factory has experienced rapid growth, reporting that revenue has doubled month over month for each of the past six months. The company attributes this traction to increasing enterprise adoption of autonomous development systems capable of handling complex workflows across the software lifecycle.
The platform has recently evolved beyond individual development agents into a broader system designed to operate across multiple functions within a software organization. New capabilities include “Missions,” which allow coordinated multi-agent workflows to execute long-horizon tasks, and Factory Desktop, which enables Droids to operate directly on a user’s machine with full system access and contextual awareness.
Factory’s approach is built to be model-agnostic, enabling enterprises to integrate different AI models, interfaces, and development stages within a unified platform. The company is positioning itself as a foundational layer for what it describes as “agent-native” software development, where autonomous systems operate in parallel to produce software rather than relying on traditional, manual coding processes.
Looking ahead, Factory plans to expand its platform with enhanced model routing, cost optimization, always-on agents, enterprise-grade governance, and improved measurement of agent performance and readiness at scale.
The funding underscores growing investor confidence in AI-driven software development tools as enterprises increasingly look to automate engineering workflows and improve productivity.
KEY QUOTES:
“We started Factory three years ago with a single mission: bring autonomy to software engineering. 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.”
“We are building the definitive platform for agent-native development, where software is no longer written line by line, but produced by autonomous systems operating in parallel. The next phase of the platform 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.”
Company statement by Factory
