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● LIVE Updated 1h ago · 16 sources tracked

Factory CEO just accused his VC board adviser of spying for Cognition

Artificial intelligence coding startup Factory has publicly fired venture capital board adviser Chris Degnan, with CEO Matan Grinberg accusing him of leaking confidential product plans to primary competitor Cognition. The public dispute erupted after Degnan accepted a new position as chief revenue officer at Cognition. Grinberg stated on X that trust was violated when Degnan discussed Factory matters with the rival firm. Degnan has denied sharing secret data, asserting that he resigned from his advisory post. The high-profile public feud has drawn intense discussion across Silicon Valley regarding startup board ethics.

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  • ✓ Factory CEO and co-founder Matan Grinberg fired VC board adviser Chris Degnan and accused him of sharing confidential information with rival startup Cognition.
  • ✓ Chris Degnan took a job as chief revenue officer for Cognition.
  • ✓ Chris Degnan denied sharing confidential information and stated that he resigned.
🛡️ Source Corroboration: 16 independent reporting domains (95% confidence) ⏱ Read time: ~2 min

What changed

Factory CEO Matan Grinberg terminated board adviser Chris Degnan and publicly accused him on X of sharing proprietary company information with rival startup Cognition.

Live updates

  1. AI Startup Factory Fires Board Adviser Accused of Spying for Cognition

    Artificial intelligence coding startup Factory has publicly fired venture capital board adviser Chris Degnan, with CEO Matan Grinberg accusing him of leaking confidential product plans to primary competitor Cognition. The public dispute erupted after Degnan accepted a new position as chief revenue officer at Cognition. Grinberg stated on X that trust was violated when Degnan discussed Factory matters with the rival firm. Degnan has denied sharing secret data, asserting that he resigned from his advisory post. The high-profile public feud has drawn intense discussion across Silicon Valley regarding startup board ethics.

    Why it matters

    Boardroom confidentiality is critical for early-stage artificial intelligence startups competing aggressively for market dominance in coding tools. The collision between venture capital advisory roles and operational hires at rival companies exposes deep structural tensions in the tech industry. When individuals hold influential positions across competing entities, questions of fiduciary duty and intellectual property protection inevitably come to the forefront of industry debate.

    What is confirmed

    • Factory CEO and co-founder Matan Grinberg fired VC board adviser Chris Degnan and accused him of sharing confidential information with rival startup Cognition.
    • Chris Degnan took a job as chief revenue officer for Cognition.
    • Chris Degnan denied sharing confidential information and stated that he resigned.

    What to watch next

    • Any formal legal action or confidentiality breach investigations launched by Factory against Chris Degnan or Cognition
    • Statements from Cognition leadership regarding the recruitment of Chris Degnan and access to competitor intelligence
    Sources used for this update (17)
    1. techcrunch.com — Factory CEO just accused his VC board adviser of spying for Cognition
    2. Business Insider — Why two of Silicon Valley's hottest AI coding startups are publicly feuding over one executive
    3. The Information — Behind Factory Founder’s Spat With Cognition Over Key Hire
    4. Межа. Новини України. — Factory Removes Adviser After Accusing Him of Sharing Secrets With Rival Cognition
    5. Benzinga — Factory Fires Advisor, Accuses Cognition Of Seeking Product Information Factory Adviser Fired For Speakin
    6. Yahoo Finance — Factory CEO just accused his VC board advisor of spying for Cognition
    7. The Economic Times — ‘Trust was violated’: AI startup Factory fires adviser accused of spying for rival Cognition
    8. fourweekmba.com — Factory vs. Cognition: When a Board Seat Is Just a Promise
    9. newsletter.strictlyvc.com — The FTC Is Investigating OpenAI, Anthropic, and Other Leading Labs - StrictlyVC
    10. techcrunch.com — Factory CEO just accused his VC board advisor of spying for Cognition
    11. flipboard.com — Factory CEO just accused his VC board adviser of spying for Cognition
    12. aventure.vc — Factory CEO just accused his VC board adviser of spying for ...
    confidence 95%
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