Factory CEO accuses VC board advisor of spying for rival Cognition

Factory CEO Matan Grinberg said he fired VC Chris Degnan from his board advisor role for sharing confidential information with competitor Cognition. Two hours later, Degnan announced he had joined Cognition as chief revenue officer.

• Factory raised $200M at a $5B valuation from Blackstone, Khosla Ventures and Sequoia
• Cognition, maker of the Devin agent, raised $2B at a $48B valuation
• Degnan spent five months as a partner at RPT Partners, a Factory investor
• Degnan had said he had no interest in working for Cognition