# Factory revenue, valuation & funding

Markdown copy of https://realalpha.app/companies/factory/ on Real Alpha, the best minutes from long interviews with the people building AI. Cite and link the page, not this copy.

Factory was valued at $5B when it raised $200M in September 2026. Sacra estimates its annualized revenue reached $60M in March 2026. It's a private company and hasn't announced plans to go public.

Checked Nov 7, 2026

## At a glance

- Valuation: $5B at its September 2026 round, when it raised $200M.
- Revenue: about $60M in annualized revenue in March 2026, a Sacra estimate. Factory hasn't given a revenue figure of its own.
- Status: private. No stock ticker. No IPO plan announced.
- Founded: 2023 in San Francisco, by Matan Grinberg and Eno Reyes.
- CEO: [Matan Grinberg](https://realalpha.app/builders/matan-grinberg/).
- Investors: Khosla Ventures, Sequoia Capital, NEA, Blackstone, Insight Partners, J.P. Morgan and Nvidia, among others.
- Products: Droids, its coding agents, which run in the CLI, IDE, Slack, Linear and the browser.
- Employees: 219 by September 2026, per Sacra.
- On Real Alpha: 12 moments of its people talking, from 3 interviews

## Is Factory public? Can you buy its stock?

No. Factory is a private company, so its shares don't trade on any stock exchange and it has no ticker symbol.

Its executives haven't said in public when it might list. No IPO filing has been reported.

Its shares are held by its founders, staff and investors. Factory says its total funding passed $400M after its [September 2026 round](https://factory.com/news/5-billion-valuation). This page reports facts and gives no investment advice.

## Valuation, round by round

Its valuation rose from $300M in September 2025 to $5B in September 2026, more than sixteen times in under a year.

- Sep 2026 · $5B · $200M · — · [Factory's blog](https://factory.com/news/5-billion-valuation)
- Apr 2026 · $1.5B · $150M · Khosla Ventures · [Factory's blog](https://factory.com/news/series-c)
- Sep 2025 · $300M · $50M · NEA, Sequoia Capital, J.P. Morgan, Nvidia, Abstract Ventures, Mantis Ventures · [Factory's blog](https://factory.com/news/series-b)

Sacra lists a $5M seed round in November 2023 and a $15M Series A at $120M in June 2024, but these rounds are not confirmed by any primary report. City AM reported talks in August 2026 at a valuation above $3.5B, before the $5B round was announced.

## Revenue

Factory doesn't publish revenue figures. Sacra estimates its annualized revenue at $60M in March 2026, up from $5M at the end of 2025.

- Mar 2026 · $60M · Estimate · [Sacra](https://sacra.com/c/factory/)

A run rate is a month's revenue times twelve and isn't audited revenue. In April 2026 Factory said its revenue had doubled month over month for six months, without giving a figure.

## How Factory makes money

Factory sells to individual developers and to engineering organizations. [Sacra](https://sacra.com/c/factory/) says it combines subscriptions with usage-based consumption.

Paid plans start at $20 a month. Large customers buy custom Business and Enterprise plans through sales.

- **Self-serve plans.** Pro costs $20 a month, Plus $100 and Max $200. Teams costs $60 a month per team plus $40 a month per seat. · [Factory](https://factory.com/pricing)
- **Claude Marketplace.** Since September 9, 2026, [Anthropic](https://realalpha.app/companies/anthropic/) enterprise customers can apply their spend commitments to Factory. · [Factory](https://factory.com/news)
- **[Databricks](https://realalpha.app/companies/databricks/).** A partnership announced October 19, 2026 puts data and software modernization in one engineering workflow. · [Factory](https://factory.com/news)
- **Partner Network.** Sacra reports that Factory launched a partner network in August 2026 with a $100M commitment. It is aimed at systems integrators such as Wipro. · [Sacra](https://sacra.com/c/factory/)

From Factory's interviews

- [Enterprise AI is shifting from usage targets to ROI](https://realalpha.app/s/enterprise-ai-is-shifting-from-usage-targets-to-roi/) · Matan Grinberg · Sabrina Halper Show · Sep 2, 2026

## Products

Factory's coding agents are called Droids. Since October 2026 it has also bought three startups to add to its platform.

- **Droids** (September 25, 2025). Its coding agents opened to anyone, with any model, in the CLI, IDE, Slack, Linear or browser. · [Factory](https://factory.com/news/series-b)
- **Factory 2.0** (April 2026). Moved the platform from single coding agents to what Factory calls software factories. · [Factory](https://factory.com/news/5-billion-valuation)
- **Personas and Connectors** (August 25, 2026). Extended Droids to work beyond engineering, per Sacra. · [Sacra](https://sacra.com/c/factory/)
- **Droid 1.0** (October 29, 2026). A new engine for its enterprise agent, built for complex projects and daily development. · [Factory](https://factory.com/news)
- **User Groups** (November 6, 2026). Lets enterprise admins set usage limits and model access by identity provider group. · [Factory](https://factory.com/news)
- **Mentlio** (October 9, 2026). Factory bought this YC S26 startup, which built model routing and context compression. · [Factory](https://factory.com/news/mentlio)
- **Typedef** (October 30, 2026). A data-context startup Factory bought to give its agents deeper data context. · [Factory](https://factory.com/news/typedef)
- **HumanLayer** (November 4, 2026). Joined Factory in an acquisition. Factory says HumanLayer will be open sourced. · [Factory](https://factory.com/news/humanlayer)

From Factory's interviews

- [Open models can be worth the risk of a closed monopoly](https://realalpha.app/s/open-models-can-be-worth-the-risk-of-a-closed-monopoly/) · Matan Grinberg · Sabrina Halper Show · Sep 2, 2026
- [Agents could cause a billion-dollar security incident this decade](https://realalpha.app/s/agents-could-cause-a-billion-dollar-security-incident-this/) · Matan Grinberg · Sabrina Halper Show · Sep 2, 2026

## Users and usage

Factory said in [September 2026](https://factory.com/news/5-billion-valuation) that hundreds of thousands of developers use it.

It names [Nvidia](https://realalpha.app/companies/#nvidia), Blackstone, Royal Bank of Canada, Palo Alto Networks, Adobe and T-Mobile as customers.

- **Royal Bank of Canada** had deployed Factory across its internal developer workforce by September 2026, Factory said, according to [Sacra](https://sacra.com/c/factory/). · [Sacra](https://sacra.com/c/factory/)

From Factory's interviews

- [A two-year COBOL migration took four days with a Droid](https://realalpha.app/s/a-two-year-cobol-migration-took-four-days-with-a-droid/) · Matan Grinberg · Sabrina Halper Show · Sep 2, 2026

## Leadership

- **[Matan Grinberg](https://realalpha.app/builders/matan-grinberg/),** co-founder and CEO. He did research in string theory before starting Factory. · [Factory](https://factory.com/news/connor-maloney-head-of-federal)
- **Eno Reyes,** co-founder. · [Reuters (via KELO)](https://kelo.com/2026/09/15/ai-coding-agent-startup-factory-triples-valuation-to-5-billion-in-latest-funding-round/)
- **Francesca LaBianca,** chief operating officer, per Sacra. · [Sacra](https://sacra.com/c/factory/)
- **Connor Maloney,** Head of Federal since October 2026. He leads Factory's push into the public sector. · [Factory](https://factory.com/news/connor-maloney-head-of-federal)
- **[Alli Pope](https://realalpha.app/builders/alli-pope/),** VP of new media and startups marketing. She built [Vercel](https://realalpha.app/companies/vercel/)'s startup program before joining.

From Factory's interviews

- [String theory taught Grinberg to decide with incomplete information](https://realalpha.app/s/string-theory-taught-grinberg-to-decide-with-incomplete/) · Matan Grinberg · Sabrina Halper Show · Sep 2, 2026
- [AI automates routine marketing work, not creative judgment](https://realalpha.app/s/ai-automates-routine-marketing-work-not-creative-judgment/) · Alli Pope · MTS · Oct 29, 2026

## Who owns Factory?

Its founders, staff and investors. As a private company it doesn't publish who holds what.

- **Khosla Ventures** led the $150M Series C in April 2026. Sequoia Capital, Blackstone, Insight Partners, Evantic Capital, 20VC, NEA and Mantis VC took part. · [Factory's blog](https://factory.com/news/series-c)
- **NEA, Sequoia Capital, J.P. Morgan and Nvidia** led the $50M Series B in September 2025, with Abstract Ventures and Mantis Ventures. · [Factory's blog](https://factory.com/news/series-b)
- **Blackstone** was reported by [City AM](https://www.resultsense.com/news/2026-08-04-blackstone-factory-droid-valuation/) in August 2026 to be weighing a lead role in a round above $3.5B. Neither side would comment. · [Resultsense (citing City AM)](https://www.resultsense.com/news/2026-08-04-blackstone-factory-droid-valuation/)
- **Sound Ventures and Clearlake** are among the investors Factory named in its $200M round in September 2026. · [Factory's blog](https://factory.com/news/5-billion-valuation)

From Factory's interviews

- [Factory's founders and team drew investors into operating roles](https://realalpha.app/s/factorys-founders-and-team-drew-investors-into-operating/) · Alli Pope · MTS · Oct 29, 2026

## Competitors

[Sacra](https://sacra.com/c/factory/) says Factory competes with AI coding platforms such as Cognition and Cursor. It writes that "Cursor and Cognition own the developer interface, which Factory lacks."

- **[Cursor](https://realalpha.app/companies/#cursor),** an AI coding platform that Sacra says owns the developer interface. · [Sacra](https://sacra.com/c/factory/)
- **[Cognition](https://realalpha.app/companies/cognition/),** another AI coding platform named as a rival. · [Sacra](https://sacra.com/c/factory/)
- **GitHub Copilot,** which Sacra calls a distribution threat because GitHub owns the repository and pull request surfaces. · [Sacra](https://sacra.com/c/factory/)

What its people said about the competition

- [Choosing what not to build is the new software moat](https://realalpha.app/s/choosing-what-not-to-build-is-the-new-software-moat/) · Matan Grinberg · Sabrina Halper Show · Sep 2, 2026
- [Nontraditional marketers can differentiate similar products](https://realalpha.app/s/nontraditional-marketers-can-differentiate-similar-products/) · Alli Pope · MTS · Oct 29, 2026

## Timeline and latest news

- Nov 6, 2026 · Launched User Groups for enterprise admins on November 6, 2026. · [Factory](https://factory.com/news)
- Nov 4, 2026 · Announced it was acquiring HumanLayer. · [Factory](https://factory.com/news/humanlayer)
- Oct 30, 2026 · Announced it had acquired Typedef, a data-context startup. · [Factory](https://factory.com/news/typedef)
- Oct 29, 2026 · Released Droid 1.0, a new engine for its enterprise agent. · [Factory](https://factory.com/news)
- Oct 19, 2026 · Announced a partnership with Databricks. · [Factory](https://factory.com/news)
- Oct 9, 2026 · Announced it had acquired Mentlio, a YC S26 startup. · [Factory](https://factory.com/news/mentlio)
- Oct 8, 2026 · Named Connor Maloney Head of Federal. · [Factory](https://factory.com/news/connor-maloney-head-of-federal)
- Sep 15, 2026 · Raised $200M at a $5B valuation. · [Factory's blog](https://factory.com/news/5-billion-valuation)
- Sep 9, 2026 · Became available on the Claude Marketplace. · [Factory](https://factory.com/news)
- Aug 25, 2026 · Launched Personas and managed Connectors. · [Sacra](https://sacra.com/c/factory/)
- Aug 4, 2026 · City AM reported Blackstone was weighing a round above $3.5B. · [Resultsense (citing City AM)](https://www.resultsense.com/news/2026-08-04-blackstone-factory-droid-valuation/)
- Apr 16, 2026 · Raised a $150M Series C at $1.5B, led by Khosla Ventures. · [Factory's blog](https://factory.com/news/series-c)
- Apr 2026 · Announced Factory 2.0. · [Factory](https://factory.com/news/5-billion-valuation)
- Sep 25, 2025 · Raised a $50M Series B at a $300M valuation. · [Factory's blog](https://factory.com/news/series-b)
- Sep 25, 2025 · Opened its Droids to anyone, with any model. · [Factory](https://factory.com/news/series-b)

## In their own words, and what followed

- [Enterprise AI is shifting from usage targets to ROI](https://realalpha.app/s/enterprise-ai-is-shifting-from-usage-targets-to-roi/) · Matan Grinberg · Sabrina Halper Show · Sep 2, 2026
  > “we have people using AI. Now we need to actually measure the ROI”
  Reported after · Two weeks later Factory raised $200M at a $5B valuation to grow in the enterprise. Its valuation had more than tripled since April. · [Factory's blog](https://factory.com/news/5-billion-valuation)

- [A two-year COBOL migration took four days with a Droid](https://realalpha.app/s/a-two-year-cobol-migration-took-four-days-with-a-droid/) · Matan Grinberg · Sabrina Halper Show · Sep 2, 2026
  > “30 year old cobalt migrations that used to take two years like they can do that in four days”
  Reported after · In October 2026 Factory and Databricks announced a partnership to help enterprises build and migrate applications. · [Factory](https://factory.com/news)

- [Agents could cause a billion-dollar security incident this decade](https://realalpha.app/s/agents-could-cause-a-billion-dollar-security-incident-this/) · Matan Grinberg · Sabrina Halper Show · Sep 2, 2026
  > “at some point in this decade, there is going to be, like, a billion-dollar incident that occurs because of agents”
  Reported after · In November 2026 Factory launched User Groups, letting enterprise admins set usage limits and model access by group. · [Factory](https://factory.com/news)

## Questions people ask

### Is Factory a public company? Can I buy Factory stock?

No. Factory is private and has no ticker, so its shares aren't sold on any exchange. It hasn't announced plans to go public.

### When will Factory IPO?

It hasn't said. No IPO filing or stated timing has been reported.

### Who owns Factory?

Its founders, staff and investors, including Khosla Ventures, Sequoia Capital, NEA, Blackstone, Insight Partners, J.P. Morgan and Nvidia. Stakes haven't been disclosed.

### Who is the CEO of Factory?

[Matan Grinberg](https://realalpha.app/builders/matan-grinberg/), who co-founded Factory in 2023 with Eno Reyes.

### Who founded Factory?

Matan Grinberg and Eno Reyes, in 2023, according to [Reuters](https://kelo.com/2026/09/15/ai-coding-agent-startup-factory-triples-valuation-to-5-billion-in-latest-funding-round/).

### How much is Factory worth?

$5B, from its $200M round in September 2026, as [Reuters](https://kelo.com/2026/09/15/ai-coding-agent-startup-factory-triples-valuation-to-5-billion-in-latest-funding-round/) reported. That was more than triple its $1.5B valuation in April 2026.

### How much revenue does Factory make?

Factory doesn't publish a figure. [Sacra](https://sacra.com/c/factory/) estimates $60M in annualized revenue in March 2026. In April 2026 Factory said revenue had doubled month over month for six months.

### Is Factory profitable?

It hasn't published profit or loss figures. [Sacra](https://sacra.com/c/factory/) says its gross margins face "the AI tax common across the category."

### How does Factory make money?

Subscriptions from $20 to $200 a month, team plans and custom enterprise plans, combined with usage-based charges.

### How many people use Factory?

Factory said in September 2026 that hundreds of thousands of developers use it. Its customers include Nvidia, Blackstone, RBC, Palo Alto Networks, Adobe and T-Mobile.

### Where is Factory headquartered?

San Francisco. It also has offices in New York, London and Japan, [Factory says](https://factory.com/news/connor-maloney-head-of-federal).

### Who are Factory's competitors?

Cursor and Cognition, according to Sacra, which also names GitHub Copilot as a distribution threat.

## Every moment from Factory's people

### Non-Engineers Are Now Shipping Code With Agents | Alli Pope
MTS · Oct 29, 2026

- [Nontraditional marketers can differentiate similar products](https://realalpha.app/s/nontraditional-marketers-can-differentiate-similar-products/) · 3 min
- [AI automates routine marketing work, not creative judgment](https://realalpha.app/s/ai-automates-routine-marketing-work-not-creative-judgment/) · 3 min
- [Factory's founders and team drew investors into operating roles](https://realalpha.app/s/factorys-founders-and-team-drew-investors-into-operating/) · 3 min

### Factory’s Matan Grinberg on Recursive Self-Improvement, Chinese Models & Lessons From String Theory
Sabrina Halper Show · Sep 2, 2026

- [Enterprise AI is shifting from usage targets to ROI](https://realalpha.app/s/enterprise-ai-is-shifting-from-usage-targets-to-roi/) · 5 min
- [Open models can be worth the risk of a closed monopoly](https://realalpha.app/s/open-models-can-be-worth-the-risk-of-a-closed-monopoly/) · 6 min
- [Recursive self-improvement does not guarantee runaway growth](https://realalpha.app/s/recursive-self-improvement-does-not-guarantee-runaway-growth/) · 6 min
- [A two-year COBOL migration took four days with a Droid](https://realalpha.app/s/a-two-year-cobol-migration-took-four-days-with-a-droid/) · 5 min
- [Choosing what not to build is the new software moat](https://realalpha.app/s/choosing-what-not-to-build-is-the-new-software-moat/) · 3 min
- [The proposed policy exempts open models from federal review](https://realalpha.app/s/the-proposed-policy-exempts-open-models-from-federal-review/) · 4 min
- [Agents could cause a billion-dollar security incident this decade](https://realalpha.app/s/agents-could-cause-a-billion-dollar-security-incident-this/) · 2 min
- [String theory taught Grinberg to decide with incomplete information](https://realalpha.app/s/string-theory-taught-grinberg-to-decide-with-incomplete/) · 3 min

### Thursday, September 25th
TBPN · Sep 26, 2025

- [Enterprise coding agents need to cover the full workflow](https://realalpha.app/s/enterprise-coding-agents-need-to-cover-the-full-workflow/) · 5 min

## People on Real Alpha

- [Matan Grinberg](https://realalpha.app/builders/matan-grinberg/), Co-founder & CEO, Factory
- [Alli Pope](https://realalpha.app/builders/alli-pope/), VP of new media & startups marketing, Factory

## How this page is sourced

Each figure links to the filing, company statement or news report it came from, with its date. Run rates are what reporters were told, not audited results; estimates and unconfirmed reports are marked. Quotes are what each person said on the record, with the minute they said it.