Menlo Ventures has invested in AI software development company Factory, joining the startup's latest funding round, which values the company at $5 billion.
Factory develops AI-powered systems designed to help teams create, test and manage software more efficiently. The company's platform aims to turn complex development workflows into a more integrated, automated process for engineering organizations.
Growing confidence in AI-native software creation
Menlo Ventures said its decision reflects confidence in Factory's founding team, technology and customer relationships. While the investment amount was not disclosed, the firm described its participation as a meaningful commitment to Factory's long-term growth.
The investment arrives as demand accelerates for AI coding tools that can support developers throughout the software lifecycle. Rather than simply generating code, emerging platforms in this field are increasingly built to coordinate planning, implementation, testing and maintenance across large-scale projects.
Factory's latest round adds momentum to a fast-moving segment where startups are exploring how AI can become a more capable collaborator for technical teams. Menlo Ventures has also built a strong profile in AI investments, backing companies that focus on practical applications of advanced models.
With fresh institutional support and a growing market for intelligent development systems, Factory is positioned to contribute to a future where software creation becomes faster, more collaborative and more accessible to a wider range of builders.
