Factory Adviser Dispute Puts Cross-Company Access in Focus

Ramp director Zachary Frankel’s reported investments in Cognition and Factory coincide with a separate dispute over a former Factory adviser’s move to Cognition, putting cross-company access to confidential information in focus.

A June 17 filing with the Securities and Exchange Commission lists Frankel as a director of Ramp Business Corp. The reported private investments are not established by that filing, and their size has not been disclosed.

The investment overlap and the adviser dispute are separate facts. The available information does not establish that Frankel was involved in Degnan’s move. The overlap puts a broader governance issue in view: how investors and advisers handle access when their networks span competing companies.

Degnan had served as a Factory adviser and board observer before joining Cognition as chief revenue officer on Sept. 30. Cognition makes the Devin coding agent, and Factory also builds AI coding products. The competing accounts became public during a dispute over confidentiality.

Factory CEO Matan Grinberg said he terminated Degnan’s adviser and board observer roles. Degnan said he resigned. Grinberg said, “We do not know the extent of the information he shared.” Degnan said, “I resigned from my advisor position on Monday and told you I was going to Cognition.”

Degnan denied sharing Factory confidential information. Cognition CEO Scott Wu denied that the company sought or received Factory information, saying, “We have no interest in Factory’s info and Chris has never brought it up.” The public statements do not establish whether any Factory information changed hands, and they do not connect Frankel to Degnan’s move.

Cognition announced more than $2 billion in funding at a $48 billion valuation on Sept. 8. Factory announced a $200 million round at a $5 billion valuation on Sept. 15. The companies’ funding announcements underscore the scale of the competing businesses, while the dispute leaves the circumstances of Degnan’s departure in question.