Menlo Ventures Backs Factory AI With Significant Investment After Khosla Criticism

Menlo Ventures announced Monday that it has invested in Factory, an autonomous AI coding startup, in a direct show of support following venture capitalist Vinod Khosla's public dismissal of the company as a "struggling second tier competitor." The investment, disclosed via a blog post from Menlo partner Matt Murphy, comes weeks after Factory raised $200 million at a $5 billion valuation and just days after Khosla's unusually harsh comments about a company his own firm has backed.