Factorial Funds

Factorial Funds is a US-based venture capital firm specialising in deep-tech and hard-tech investments, with a portfolio that spans advanced computing, semiconductors, robotics and materials Science. The firm focuses on technically complex companies where hardware and software intersect, making it a natural fit for semiconductor and AI-chip startups that require patient capital and domain expertise beyond standard SaaS-tier investment.

On 20 May 2026, Factorial Funds co-led Fractile's $220m Series B alongside Accel and Founders Fund, at a valuation of approximately $1bn . Fractile, the Oxford-founded inference-chip company, had also brought NATO Innovation Fund, In-Q-Tel and Oxford Science Enterprises onto the cap table. Factorial's co-lead position reflects its focus on semiconductor and compute companies at the growth stage, where technical due diligence and hardware production expertise are as important as financial modelling.

Factorial's participation in the Fractile round places it alongside two of the most prominent names in Silicon Valley venture (Accel and Founders Fund) on a UK-origin deal with significant national-security dimensions. For UK deep-tech founders, Factorial's involvement signals that US specialist hard-tech investors are actively seeking European hardware opportunities, not merely co-investing opportunistically on deals originated by generalist firms.