In the Room with Matan Grinberg and Eno Reyes, Founders of Factory

Welcome back to another exciting episode of The Room Podcast! In this episode, we are joined by Matan Grinberg and Eno Reyes, the co-founders of Factory, a company that is redefining the software development experience with an all-in-one command center, powered by AI. Matan and Eno share their unique journeys, from their academic backgrounds in physics and computer science to their experiences at leading tech companies such as Hugging Face, ultimately leading to the creation of Factory.

Join us as we explore how Factory is addressing the future of AI-driven development, navigating the complexities of fundraising in the age of generative AI, and carving out a distinct space in an increasingly crowded market.

Listen on Spotify, Apple Podcasts or watch on Youtube

T1: Future of AI driven software development

As the landscape of software development continues to evolve, Matan and Eno of Factory are at the forefront of what it means to be an AI-native company. They emphasize that the integration of AI into the development workflow is not merely about automating tasks; it’s about fundamentally transforming how developers interact with technology. Factory is not just selling an AI-native vision, they live it internally — 85–90% of their own codebase is AI-generated.Meetings, one-on-ones, and project management are run with AI assist. Developers operate across multiple functions (product, engineering, management) with minimum human coordination, maximizing AI collaboration.

Matan notes that the center of gravity in software development is shifting from traditional coding to a focus on understanding and planning, as AI systems become increasingly capable of generating code. This evolution requires developers to provide clear instructions and constraints, guiding AI to produce optimal results. Eno adds that Factory aims to empower developers by fostering seamless collaboration between humans and AI, enabling teams to delegate tasks and enhance their creative potential.

In this new paradigm, the role of developers is not diminished but rather elevated, as they harness AI to unlock new levels of innovation and efficiency in their projects. As Factory continues to redefine the software development landscape, it exemplifies the transformative power of being truly AI-native.

T2: Fundraising in the Age of Generative AI

Navigating the fundraising landscape in the age of generative AI presents unique challenges and opportunities. Matan and Eno share their experience of raising $20 million in funding from prominent investors like Sequoia and Lux Capital. They emphasize the importance of viewing fundraising as a tool to achieve long-term goals rather than an end in itself.

In a rapidly evolving market, understanding the utility of fundraising is crucial. Matan notes that the focus should be on building a solid product and go-to-market strategy rather than getting caught up in the headlines of fundraising announcements. Eno echoes this sentiment, highlighting the need for founders to be disciplined and strategic in their approach to fundraising, ensuring they leverage their position effectively.

T3: How Factory Stands Out in an Increasingly Crowded Market

As Factory enters a competitive landscape filled with AI-driven tools, Matan and Eno discuss their strategy for differentiation. They recognize that many existing tools are built on outdated workflows, and Factory aims to disrupt this status quo by offering a fresh perspective on software development.

By focusing on enterprise needs and addressing the complexities of legacy codebases, Factory positions itself as a valuable partner for organizations looking to innovate. Matan explains that while many tools focus on zero-to-one app building, Factory is dedicated to enhancing the development process within established enterprises, where the challenges are often more nuanced.

Eno emphasizes the importance of transparency and trust in building relationships with developers. By providing clear insights into how AI systems operate and allowing developers to maintain control over the process, Factory fosters a collaborative environment that encourages adoption and engagement.

As we look to the future, Matan and Eno’s vision for Factory is clear: to continue leveraging AI to redefine the software development landscape, making it more efficient and accessible for teams of all sizes. With a commitment to innovation, collaboration, and understanding customer needs, Factory is poised to lead the charge in transforming the way software is developed.

Special thanks to our Season 12 sponsors, Perkins Coie and Mercury, who we are thrilled to partner with for a third consecutive season.

Mercury is the fintech ambitious companies use for banking* and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That’s why over 200K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best.

​*Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust, Members FDIC.

Perkins Coie is a leading full-service, international law firm known for providing high-value, strategic solutions for startups and investors. Lawyers in Perkins Coie’s Emerging Companies & Venture Capital practice support the most innovative entrepreneurs and investors in fast-moving and high-growth sectors across the country, addressing the myriad legal needs that arise when fundraising and scaling their businesses. The firm’s tailored legal services are informed by an understanding of each client’s discrete needs.

Thank you to Empire Studios for hosting us for this in-person recording in their SF studio!