Factory was founded in 2023 by Matan Grinberg (a theoretical physics PhD student from UC Berkeley) and Eno Reyes (formerly of Hugging Face), who met at a LangChain hackathon and incorporated within 48 hours. Their founding thesis was that existing coding agents addressed only a fraction of software engineering work: writing code. The coordination overhead — ticket management, PR reviews, incident triage, documentation, dependency updates — consumed the majority of engineering time and remained entirely manual.
Factory’s Droids were specialised autonomous agents for each SDLC function: a coding Droid that implemented features; a review Droid that analysed PRs; an incident Droid that triaged on-call alerts and proposed fixes; a migration Droid that modernised legacy code. All Droids shared an organisational memory spanning code repositories, Slack conversations, Jira tickets, and engineering documentation — giving them the contextual awareness of a senior engineer familiar with the organisation’s history.
Factory raised a $50M Series B from NEA, Sequoia, and NVIDIA in September 2025, followed by a $150M Series C at a $1.5B valuation in April 2026. Revenue doubled month-over-month for six consecutive quarters leading into the Series C. Enterprise customers included NVIDIA, Adobe, EY, and Palo Alto Networks. Factory placed first on the Terminal-Bench benchmark with a score of 58.75%, validating its focus on real-world engineering tasks over narrow coding benchmarks.