Factory, a global leader in self-improving software development, has secured an investment from Menlo Ventures, led by Managing Partner Matt Murphy. The funding will accelerate a shared vision to further automate software engineering and scale the company’s autonomous development platform. The announcement underscores rising investor confidence in systems that allow enterprises to govern software creation from idea through implementation.
Menlo Ventures Backs Factory
Murphy has spent more than two decades investing through major enterprise technology shifts and has emerged as a leading investor in the artificial intelligence era. He led Menlo Ventures’ pre-product investment in Anthropic and has since backed companies reshaping the AI and software development stack. His investment in Factory reflects a shared view of where software development is heading, toward autonomous engineering that is governable, flexible, and measurable.
Leadership Commentary
Matan Grinberg, CEO and cofounder of Factory, described Murphy as a Silicon Valley veteran with high integrity, high conviction, and exceptional results. Grinberg said the industry is moving from a world where engineers build software to one where engineers build the factories that build software. He added that Menlo shares Factory’s conviction in that future and that the company is excited to have Murphy on board.
A New Model for Software Engineering
Factory is building for a future in which every enterprise operates its own autonomous software factory. Engineering teams will define intent and govern outcomes while autonomous systems carry work from an idea through implementation and ongoing improvement. The platform is built around model independence, sovereign intelligence, and continual improvement, allowing organizations to operate within their own security, infrastructure, and governance requirements.
Investor Thesis
Murphy said Factory’s team is building for a shift in software that will be every bit as significant as the shifts seen in artificial intelligence models themselves. He drew a comparison to Menlo’s investment in Anthropic, recalling that skeptics doubted the startup could overcome larger competitors before its results became clear. Murphy said he sees the same combination of principles, talent, and execution at Factory and is thrilled to be part of the journey.
Enterprise Momentum and Expansion
Factory works with organizations including NVIDIA, Blackstone, Palo Alto Networks, Adyen, and EY. The company recently raised US$200 million at a US$5 billion valuation and has expanded globally with offices in San Francisco, New York, London, and Japan. Its platform enables enterprises to operate trusted, self-improving systems that run continuously while human teams govern measurable outcomes.
Origins and Investor Base
Factory was founded in 2023 by Matan Grinberg and Eno Reyes and is headquartered in San Francisco. Its investors include Sequoia Capital, Blackstone, NEA, Khosla Ventures, Insight Partners, NVIDIA, J.P. Morgan, Sound Ventures, and Mantis. Menlo Ventures is the latest addition to a group of backers supporting the company’s global expansion and autonomous software development mission.
The investment from Menlo Ventures signals growing confidence in Factory’s approach to self-improving software development. With a strong roster of enterprise customers, significant recent funding, and expanding global operations, Factory is positioned to help organizations govern autonomous engineering at scale. As artificial intelligence continues to reshape the software development stack, the company’s model independence and focus on measurable outcomes may define the next phase of enterprise software creation.