AI programming agent startup Factory has secured $150 million in a Series C round, bringing its valuation to $1.5 billion. The financing was led by Khosla Ventures, with participation from Sequoia Capital, Blackstone, Insight Partners, and NEA. The deal underscores continued investor interest in autonomous AI tools built for software development.
Droid Gains Traction in Enterprise Development
Factory’s flagship product, Droid, is described as a fully autonomous software development agent. According to the company, the product is now being used by hundreds of thousands of developers, including teams at major enterprises such as NVIDIA and Adobe. That level of adoption suggests Droid is being positioned beyond basic code assistance and closer to task execution within real development environments.
Revenue Growth and Broader Use Cases
CEO Matan Grinberg said the company’s revenue has been doubling month over month, while product usage has expanded beyond code completion. Factory said its tools are now also being applied to COBOL migration and workflow automation, pointing to a broader enterprise opportunity in legacy modernization and process efficiency.
Model-Agnostic Strategy
Factory has emphasized a model-agnostic approach, arguing that its goal is to increase developer autonomy rather than replace developers outright. This positioning is notable as enterprises increasingly look for AI systems that can integrate with evolving model stacks while remaining practical for deployment in production settings.
Funding to Support Research and Expansion
The company said the fresh capital will be used for research, product development, and global expansion. As AI software agents move from assistive tools toward more autonomous execution, market competition is likely to focus on commercialization, reliability, and depth of enterprise adoption. With this round, Factory strengthens its standing in the fast-growing AI development agent market.