This week, five startups across artificial intelligence, semiconductor verification, enterprise software, HR technology, and interactive content collectively raised $310.7 million in fresh venture funding. The largest deals included a $200 million round for software development company Factory and a $53 million seed extension for enterprise AI services startup Hang Ten Systems. Investors continue to back applied AI solutions, with deals ranging from seed to Series B.
Factory Leads with $200 Million at $5 Billion Valuation
Software development startup Factory secured the largest disclosed round this week, raising $200 million at a $5 billion valuation. The financing included Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, Sound Ventures, NEA, Mantis VC, and Clearlake. The company said total funding now exceeds $400 million. Factory develops autonomous software-engineering systems for enterprises and plans to use the new capital for research, product development, and global expansion. Customers include NVIDIA, Blackstone, RBC, Palo Alto Networks, Adobe, and T-Mobile.
Hang Ten Systems Adds $53 Million for Enterprise AI
Enterprise AI services startup Hang Ten Systems, founded by former Infosys CEO Vishal Sikka, raised an additional $53 million in seed funding. The round was led by Xora Innovation, backed by Singapore’s Temasek, with participation from Mayfield and Aramco Ventures. This brings Hang Ten’s total funding to $85 million after its $32 million seed round in June. The company helps large enterprises apply AI to software development, migrations, finance, and analytics. The new funds will support engineering and consulting expansion, increased customer delivery capacity, and further development of its AI platform and reusable skills library.
Flam Secures $40 Million Series B for AI Interactive Content
AI interactive-content startup Flam raised $40 million in Series B funding led by QED Investors. Other participants included Claypond Capital, Martin Chavez, Olivier Pomel, Venky Harinarayan, and Shah Rukh Khan, with existing investors RTP Global and Dovetail increasing their stakes. Flam plans to direct the funding toward AI research, product development, and international enterprise expansion. The company reports more than 100 enterprise customers, including Google, Emirates, and KFC, using its technology for marketing, product visualization, learning, entertainment, and customer engagement.
BoomerangHR Raises $12.7 Million for AI-Powered HR Platform
AI-powered HR platform BoomerangHR raised $12.7 million in seed funding from Kalos Ventures, Album Ventures, Monta Vista Capital, Capital Eleven, and Strada Education Foundation. The company focuses on employee offboarding and maintaining relationships with former employees, enabling businesses to identify potential candidates for future roles. Its platform combines automated offboarding processes with verified alumni profiles, job matching, and reporting. BoomerangHR said the funding will support building long-term talent networks and expanding adoption among employers.
VerifAIX Raises $5 Million for AI-Driven Semiconductor Verification
AI-native semiconductor verification company VerifAIX raised $5 million in seed funding co-led by Endiya Partners and Bluehill VC. The company plans to use the capital for product development, customer deployments, and expansion of its engineering teams across the US, India, and Israel. VerifAIX is developing a verification platform for increasingly complex chip designs. Its technology, built around what the company calls a ‘Formal Brain’, combines AI with formal verification methods to help engineers assess whether chip designs meet intended specifications. The startup was founded in 2024 by Madhulima Tewari, Kenneth Roe, and Avner Landver.
Closing Note
Together, the week’s $310.7 million in disclosed funding shows continued investor interest in applied AI across multiple sectors, from enterprise software and chip verification to HR technology and interactive content. Capital is flowing into companies at various stages seeking to turn AI capabilities into commercial products and services.
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