Factory Raises $200M at $5B Valuation

Factory, a software development company focused on autonomous and self-improving software engineering, has raised $200 million in new funding at a $5 billion valuation. The financing brings the company’s total funding to more than $400 million and will support investments in research, product development, and global go-to-market expansion.

Investors

The funding round includes participation from Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, Sound Ventures, NEA, Mantis VC, and Clearlake.

Factory Use of Funds

Factory plans to use the new capital to accelerate its investments in research, product development, and global go-to-market operations as it expands its platform for enterprise software engineering.

About Factory

Founded in 2023, Factory is developing technology designed to bring autonomy to software engineering through self-improving software factories. Its platform enables enterprises to manage software development across the entire lifecycle through a unified system rather than relying on fragmented tools and standalone AI agents.

Funding Details

Company Website: https://factory.ai

Company: Factory
Raised: $200M
Round: Other
Funding Date: September 15, 2026
Additional Investors: Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, Sound Ventures, NEA, Mantis VC, Clearlake
Software Category: AI Software / Software Development
Source: https://factory.com/news/5-billion-valuation