Agent-native software development startup Factory announced today that it has raised $50 million in new funding and also fully released Droids, advanced agents designed to accelerate the shift toward agent-native development.

The launch follows testing in which Factory’s Droids ranked No. 1 on Terminal Bench, the industry benchmark also used by tools like Claude Code and Cursor. The company argues that while other AI coding platforms tie developers to a single integrated development environment, model or interface, Droids meet engineers where they already work, making adoption easier and more flexible, the company says.

Founded in 2023, Factory is focused on agent-native software development with a model in which autonomous software agents handle full tasks in the development lifecycle, allowing human engineers to focus on high-level decisions.

The company’s Droids are large language model-agnostic and interface-agnostic, allowing developers to work from the terminal, IDE, Slack, Linear and browsers, or through custom scripts. The flexibility allows developers to adopt agents without rewriting workflows or abandoning existing tools.

The system ingests organizational context and engineering tool data, including version control, issue trackers and incident systems, so that agents onboard like seasoned engineers and make consistent, context-aware decisions. The agents integrate with organizational tools like GitHub, Jira, Slack, Datadog and Google Drive and build a “mental model” of the codebase similar to a seasoned engineer.

Droids also go beyond autocomplete to perform complex tasks such as feature development, refactoring, code review, documentation, incident response and codebase Q&A.

“Agent‑native development presents the most substantive shift in software development since the move to the cloud,” said co-founder and Chief Executive Matan Grinberg. “At Factory, we’re bringing that transition to every developer — starting with Droids in the CLI — so teams can evolve their behavior without rewriting their entire workflow.”

Grinberg added that “agents will not replace developers, but developers who are fluent with agents will rapidly outleverage and outpace developers who are not.”

While the Droids are only launching in full today, Factory already has an impressive lineup of customers, including Ernst & Young Global Ltd., Nvidia Corp., MongoDB Inc., Zapier Inc., Bayer AG and Clari Inc. Those customers are said by Factory to be seeing 31 times faster feature delivery, 96% shorter migration times, a 96% reduction in on-call resolution times, higher-quality code and more time for developers to focus on design and architecture.

Complementing the full launch of Droids was the company’s announcement that it has raised $50 million in Series B funding to expand its product capabilities, grow enterprise adoption and hire across engineering, research and go-to-market teams. The round included participation from New Enterprise Associates, Sequoia Capital Operations, Nvidia and J.P. Morgan Chase & Co., as well as notable angel investors Frank Slootman, Nikesh Arora and Aaron Levie.

“Factory is demonstrating what no other agentic coding platform has: that enterprises will adopt and scale this technology when it delivers real value,” said Madison Faulkner, a partner at NEA. “We believe their ability to combine enterprise adoption with scalable unit economics strongly positions them to lead and define the future with an entirely new category of agent-native development.”

Image: Factory