Factory has raised $200 million in new funding at a $5 billion valuation, according to an announcement published September 15, 2026. The round brings the company’s total funding to more than $400 million.
The financing was backed by Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, Sound Ventures, NEA, Mantis VC and Clearlake. Factory did not identify a single lead investor in its announcement.
Factory develops AI agents and software-development systems for enterprise engineering teams. The company says its products are designed to automate parts of software creation and enable organizations to operate controlled, measurable software factories.
The company said the new capital will be used to accelerate research, product work and international go-to-market efforts. It also said hundreds of thousands of developers use its technology, with customers including Nvidia, Blackstone, Royal Bank of Canada, Palo Alto Networks, Adobe and T-Mobile.
The financing reflects continued investor interest in AI coding systems that target enterprise software workflows rather than consumer chat applications. Factory’s valuation has risen sharply as companies seek tools that can increase developer productivity and automate engineering tasks.
