Menlo Ventures partner Matt Murphy announced Monday that the firm has invested in AI coding startup Factory. Menlo declined to say how much but confirmed it was part of Factory’s latest funding round at a $5 billion valuation. A source said the investment was significant and Menlo would have invested more if space allowed.
Last week, Factory co-founder and CEO Matan Grinberg publicly alleged he fired board advisor Chris Degnan of RPT Partners, fearing Degnan shared confidential info with competitor Cognition after Degnan moved there as chief revenue officer. Vinod Khosla, whose firm backs both Factory and Cognition, called Factory a “struggling second tier competitor” and accused Grinberg of lying. Degnan disputed the account, saying he resigned.
Murphy, known for betting on Anthropic early, has been on a hot streak with deals at Lovable and Legora. Some VCs now call Factory “the next Anthropic.” Sequoia’s Shaun Maguire, a Factory backer, praised Menlo’s endorsement. Menlo is not an investor in Cognition.
Source: TechCrunch Venture · Summarized by HeadlinesBriefing