Factory sells software-development agents called Droids to engineering teams that need to plan changes, navigate codebases, write code, run tests and prepare work for human review. The company said Tuesday it raised $200 million at a $5 billion valuation, adding capital as it tries to make those agents a governed system for an enterprise’s full software-development cycle.
A Factory workflow can begin with a bug report, internal discussion, customer request or business requirement. Factory describes a loop in which that signal becomes a planned change that is built, tested, reviewed, secured and shipped; monitoring the deployed software then produces new signals. Engineers codify the workflows, choose which tasks can run autonomously and retain responsibility for governance and outcomes.
The system is designed to sit across the development stack rather than bind a customer to one model or deployment. Factory says organizations can choose models based on cost, speed or performance and run the platform in the cloud, with their own model keys, on self-hosted infrastructure or in an air-gapped environment. Code review, security analysis, documentation, quality assurance and incident response can share the same agent core and organizational context.
Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, Sound Ventures, NEA, Mantis VC and Clearlake participated in the financing. The round lifted Factory’s valuation from the $1.5 billion attached to its $150 million Series C in April and brought total funding above $400 million. Factory said it will invest the new capital in research, product development and its global go-to-market operation.
Factory says hundreds of thousands of developers use its products and identifies Nvidia, Blackstone, Royal Bank of Canada, Palo Alto Networks, Adobe and T-Mobile as customers. It sells organization access through a self-service Teams subscription and custom-priced Business and Enterprise contracts. The larger plans add shared usage, administrative and security controls, support, dedicated computing options and on-premises deployment.
The financing raises the execution test from whether one Droid can complete a coding task to whether Factory can make the full loop—from an incoming request through deployment and monitoring—repeatable inside large organizations. Adoption will depend on customers codifying their development rules and giving agents enough autonomy to deliver measurable work without weakening review, security or cost controls.