Menlo Ventures invests in AI startup Factory following funding extension

Menlo Ventures has invested in AI coding startup Factory as an extension of the company's funding round at a $5 billion valuation.

FTMQ Startups, written by our newsroom5 October 2026 at 23:110 views

Menlo Ventures announced on Monday that it has invested in AI coding startup Factory. TechCrunch Venture and Pulse 2.0 both reported that the deal was led by Menlo Ventures Managing Partner Matt Murphy. The investment forms part of Factory's latest funding round, which was announced last month at a $5 billion valuation. [1][2]

TechCrunch Venture reported that Menlo Ventures declined to state the exact amount of its investment. However, a source familiar with the deal stated that the sum was significant for Menlo Ventures, and that the firm would have invested more if there had been space available on the cap table. [1]

Pulse 2.0 noted that Matt Murphy previously led the firm's pre-product investment in Anthropic. According to TechCrunch Venture, the investment follows a public dispute last week between Factory co-founder and chief executive officer Matan Grinberg and investor Vinod Khosla, who had publicly criticized the company. [1][2]

Menlo Ventures has backed AI coding startup Factory as part of its recent funding round.
The funding round values Factory at $5 billion.
The investment was led by Menlo Ventures Managing Partner Matt Murphy.

Sources

Every paragraph above points to the numbered items it rests on. Read the originals here.

[1]After Factory’s public spat with Khosla, Menlo proudly investsTechCrunch Venture, 4h ago (the report this story comes from)
[2]Menlo Ventures Invests In Factory To Advance Autonomous Software EngineeringPulse 2.0, 3h ago
[3]After Factory’s public spat with Khosla, Menlo proudly investsTechCrunch, 4h ago
[4]Menlo Ventures backs Factory days after Vinod Khosla’s public jabCrypto Briefing, 4h ago

Background

[5]Small modular reactor on Wikipedia
[6]COVID-19 pandemic in India on Wikipedia
[7]Menlo Park, California on Wikipedia
[8]Factory on Grokipedia

Our newsroom writes these reports with the help of software, from the 8 sources listed and nothing else, and checks them against those sources. Facts can still be wrong or move on; the originals are the record. Spotted a mistake? Write to daniel@monsterkong.com.

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