Factory CEO Accuses VC Board Advisor of Sharing Confidential Info with Competitor Cognition
Matan Grinberg, CEO of AI coding startup Factory, accused board advisor Chris Degnan of sharing confidential information with rival company Cognition. Two hours after the accusation on X (formerly Twitter), Degnan announced his new role as chief revenue officer at Cognition. Degnan had previously worked for Snowflake and was a partner at RPT Partners, an investor in Factory. Factory is valued at $5 billion following a recent $200 million funding round led by major investors like Blackstone and Sequoia Capital. Its main competitor, Cognition, recently raised $2 billion at a valuation of $48 billion. Grinberg claims Degnan had assured him he would not join the rival firm but later revealed ongoing discussions with it. Degnan’s LinkedIn post about his new role omitted any mention of Factory but highlighted RPT Ventures' involvement with Cognition. The incident raises concerns over conflicts of interest in venture capital, particularly as some firms invest in competing AI startups.
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Topics: AI Boardroom Conflict Confidentiality Breach Startups Venture Capital