Factory, a startup building an AI-powered software development platform, has closed a $150 million Series C funding round that values the company at $1.5 billion. The fresh capital will go toward scaling the company's platform as demand for AI-driven automation in coding continues to surge.
Who's behind the round
The Series C was led by existing investors, with participation from new backers. Factory didn't disclose the full investor list, but the round brings total funding to date above $200 million. The company declined to name individual investors or specific terms beyond the valuation figure.
What Factory builds
Factory's platform uses artificial intelligence to automate parts of the software development lifecycle. The tool helps developers write, test, and deploy code faster by learning from a project's existing codebase and patterns. It's one of a growing number of startups that apply large language models and machine learning to the traditionally manual task of programming.
The company says its product is already used by several midsize tech firms, though it hasn't released customer names or usage numbers. The new funding will go toward expanding the platform's capabilities and hiring engineers to support that growth.
Why the money came now
Investors have been pouring capital into AI coding tools as companies look for ways to speed up development and reduce costs. Factory's rapid ascent — from its last round to a $1.5 billion valuation — reflects that appetite. The startup's Series C was oversubscribed, according to a person familiar with the process, though the company didn't confirm that detail.
The funding also comes as the broader tech industry keeps searching for efficiencies after a period of layoffs and tighter budgets. Tools that promise to let teams do more with fewer developers are drawing attention from both startups and established firms.
Factory plans to use the new capital to scale its platform and keep pace with demand. The company hasn't set a public timeline for new features or markets, but executives have said the focus remains on improving the core product for existing customers.
