Advisor disputes the claims, says he resigned and shared nothing
Matan Grinberg, co-founder and CEO of AI coding startup Factory, said in a public post that he removed venture investor Chris Degnan from his role as a board advisor. Grinberg alleges that Degnan shared confidential information with Cognition, the maker of the Devin coding agent, which Grinberg sees as Factory's biggest competitor.
The allegations
Grinberg says Degnan sat in on board meetings and advised the leadership team, asking about Factory's product roadmap and competitive position, while also in contact with Cognition executives. He says Degnan had earlier mentioned an informal conversation with a Cognition executive and assured him he wasn't planning to join the rival. Hours before Grinberg's post, Degnan announced he had become Cognition's chief revenue officer.
Degnan was bound by confidentiality obligations through his work with Factory, Grinberg says. He added that board trust is a bond that helps the startup ecosystem work, and that Degnan violated it.
Degnan's response
Degnan disputes the account on several points. He says he resigned rather than being fired and told Grinberg he was leaving for Cognition, after which Grinberg offered him a full-time role at Factory, which he declined. He also says his last Factory board meeting came weeks before he had ever spoken to Cognition, and that he has not shared any confidential information. His venture firm's managing partner will also work with Cognition.
Cognition's CEO, Scott Wu, said his company has no interest in Factory's information. He also said Degnan resigned before the dispute became public, but did not dispute that Degnan had been in talks with Cognition before then.
Investors weigh in
The dispute has pulled in Khosla Ventures, which has invested in both Factory and Cognition. Founder Vinod Khosla sided with Cognition and accused Grinberg of misrepresenting the firing. Partner Keith Rabois said interviewing with a competitor while attending board meetings is unethical in itself.
Wider scrutiny
The episode adds to growing attention on conflicts of interest among venture investors who back competing AI companies. Andreessen Horowitz has reportedly been the subject of a Justice Department probe over partners serving on competitors' boards. None of the allegations in this dispute has been independently verified.