# Menlo Ventures announces investment in AI coding startup Factory

_Published Monday, October 5, 2026 at 3:47 PM EDT · Capital, AI · Latest · Tier 2 — Notable_

![Menlo Ventures announces investment in AI coding startup Factory — Primary](https://techcrunch.com/wp-content/uploads/2026/07/Matt-Murphy-Menlo-Ventures.jpeg?resize=1200,1200)

Menlo Ventures announced Monday that it has invested in AI coding startup Factory, TechCrunch reported. The investment was part of Factory's funding round announced last month at a $5 billion valuation. Menlo declined to disclose how much it invested.

The announcement follows a public dispute over Factory CEO Matan Grinberg's allegation that former board advisor Chris Degnan may have shared confidential information with competitor Cognition. Degnan disputed Grinberg's account of his departure. A source familiar with the investment said Menlo would have invested more had there been room on Factory's cap table.

## Sources

- [TechCrunch](https://techcrunch.com/2026/10/05/after-factorys-public-spat-with-khosla-menlo-proudly-invests/)

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Canonical: https://techandbusiness.org/newswire/8aIcqRcgfILIgqMKcyfhf3
Published: 2026-10-05T19:47:04.519Z
Story chronology: 2026-10-05T19:38:07.000Z
Retrieved: 2026-10-05T21:59:24.199Z
Publisher: Tech & Business (techandbusiness.org)