Factory Raises $50M from NEA, Sequoia Capital, NVIDIA, & JPMorgan

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Sep 25, 2025

Matan Grinberg, CEO and co-founder of Factory, shares his journey from string theory at Berkeley to launching an AI infrastructure firm worth $50M. He discusses Factory's innovative 'droids'—autonomous agents poised to revolutionize software engineering. Matan highlights a shift from autocomplete to task delegation, emphasizing how this changes developers' roles. He reveals how partnerships with Fortune 500s have fueled growth and shares insights on the impact of AI on team dynamics and project efficiency.

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ANECDOTE

From String Theory To Startup Demo Overnight

Matan left a Berkeley PhD after a chance Sequoia walk and a hackathon demo led to funding.
He and cofounder Eno built the first Factory demo overnight and pitched Sequoia shortly after.

INSIGHT

Agent-Native Development Is The Next Paradigm

Factory views agent-native development as a fundamental shift beyond IDE autocomplete.
Droids are task-specific agents designed around distinct engineering workflows for real autonomy.

INSIGHT

Verification Becomes The New Bottleneck

As agents automate coding, planning, scoping, and verification gain importance.
Success depends on setting clear validation and robust observability before delegating to agents.

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Factory just raised a $50M Series B from NEA, Sequoia Capital, NVIDIA, and JPMorgan, alongside angels like Frank Slootman, Nikesh Arora, and Aaron Levie. The company is pioneering agent-native development with its flagship “Droids” — autonomous software engineering agents that can handle everything from migrations and refactors to testing, documentation, and incident response.

In this Sourcery interview, Factory CEO & Co-Founder Matan Grinberg shares the journey from studying string theory at Berkeley to building one of the fastest-growing AI infrastructure companies in Silicon Valley. He explains why the shift from autocomplete to delegation is the most fundamental change in software development since the move to the cloud, and how Factory achieved real traction with Fortune 500 enterprises like EY, Nvidia, MongoDB, Zapier, Bayer, and Clari.

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