sided with Degnan

In a contentious move, AI coding startup Factory fired VC Chris Degnan from his role as a board adviser after he allegedly shared confidential information with Factory's biggest competitor, Cognition. Degnan announced his new role as chief revenue officer at Cognition on social media, contradicting Grinberg's claims that he was fired.

Grinberg, who attributes his decision to Degnan's ongoing talks with Cognition, maintains that Degnan breached confidentiality obligations. Degnan disputes these allegations, stating that he resigned to take the Cognition position and had no interest in working for the competitor. Both parties have dismissed each other's accounts, with Factory co-founder Matan Grinberg accusing Degnan of lying, while Khosla Ventures founder Vinod Khosla defended Cognition, calling Factory a "struggling second tier competitor."

In response, Khosla Ventures partner Keith Rabois condemned Degnan's actions, stating that it's unethical to interview at a competitor while attending board meetings and dinners. The controversy has raised concerns about conflicts of interest among VC board members, with a Justice Department probe underway for Andreessen Horowitz's partners serving on competitors' boards.