Menlo Ventures has invested in Factory, backing the software development company’s push toward autonomous software engineering. The investment was led by Menlo Ventures Managing Partner Matt Murphy, who previously led the firm’s pre-product investment in Anthropic.
Factory is developing technology designed for a future in which enterprises operate autonomous software factories, with engineering teams defining requirements and governing outcomes while software systems execute development work.
The company’s approach emphasizes model independence, sovereign intelligence and continual improvement.
Factory believes enterprises adopting autonomous development systems will increasingly require control over which AI models they use, where engineering context and source code reside and how automated work is governed.
Its platform is designed to operate within customers’ existing security, infrastructure and governance requirements.
Factory works with organizations including NVIDIA, Blackstone, Palo Alto Networks, Adyen and EY.
The company recently raised a separate $200 million funding round at a $5 billion valuation and has expanded internationally with offices in San Francisco, New York, London and Japan.
KEY QUOTES:
“Matt is one of the legends of Silicon Valley. High integrity, high conviction, and incredible results. He has a track record of recognizing winners before they become obvious. We are moving from a world where engineers build software to a world where engineers build the factories that build the software. Matt and Menlo share our conviction in that future, and we’re excited to have him on board as we build it.”
Matan Grinberg, CEO and Co-Founder of Factory
“Matan, Eno and the Factory team are building for a shift in software that I believe will be every bit as significant as the shifts we’ve seen in AI models themselves. When we invested in Anthropic, there was plenty of skepticism that they could overcome larger competitors. They stayed focused on the things that mattered and the results speak for themselves. I see that same combination of principles, talent, and execution at Factory. There’s a lot more coming, and I’m thrilled to be part of the journey.”
Matt Murphy, Managing Partner at Menlo Ventures
