Factory raises $200M at $5B valuation, tripling in five months

Factory, the San Francisco startup building autonomous AI agents for software engineering, just closed a $200 million raise that values the company at $5 billion. That’s more than triple the $1.5 billion valuation it commanded just five months ago, in April 2026. For a company founded in 2023, the trajectory reads less like a funding history and more like a vertical line on a chart. Factory went from its $150 million Series C in April, to a $120 million Series C-2 extension at $4 billion in July, to this latest $200 million round at $5 billion. Three valuation jumps in five months. What Factory actually builds Factory’s core product is a fleet of AI agents the company calls “Droids.” These aren’t code-completion assistants that suggest the next line in your IDE. They’re autonomous agents designed to handle multi-step software engineering workflows end to end: incident response, code refactoring, testing, and other tasks that typically require a human engineer to context-switch across several tools. The platform is model-agnostic, meaning it can run on top of various foundation models, including Anthropic’s Claude. It plugs into the tools engineering teams already use: IDEs, CI/CD p...