Matan Grinberg, co-founder and CEO of AI coding startup Factory, stated on Wednesday that he fired VC Chris Degnan from his role as a board advisor. Grinberg alleges that Degnan shared confidential information with Factory’s competitor, Cognition.
Two hours later, Degnan announced on X and LinkedIn that he has joined Cognition as its chief revenue officer. Degnan had spent the last five months as a partner with RPT Partners, an investor in Factory.
Grinberg claimed Degnan had previously admitted to a “casual” conversation with a Cognition executive but had denied interest in working for the competitor. However, Grinberg stated that Degnan later disclosed he had been in ongoing talks with Cognition, leading to his dismissal from the board on Tuesday.
Grinberg expressed concern over the extent of confidential information Degnan may have shared, noting that Degnan was subject to confidentiality obligations. Degnan's announcement of his new role at Cognition did not mention Factory, but stated that RPT Ventures and its managing partner, Chad Peets, will now be working with Cognition.