Building a Software Factory that actually works (Full Course)
The Startup Ideas Podcast
September 14, 2026
I welcome Ras Mic back to the pod to explain the phrase "software factory." Mic shares his screen and walks through the exact system that he runs today. His factory has four steps: isolate, build, prove, and ship.
Speakers Greg Isenberg, Ras Mic
TopicsEntrepreneurshipBusiness
Greg Isenberg (0:00)
What are software factories and why is it going viral? I mean, it's basically this concept that allows you to use AI agents to actually ship software that isn't sloppy at all, that is more like a factory, more like, think about an assembly line, and you're just, instead of building physical products, you're building software. And that's kind of the dream. I mean, if you're able to just create this factory that builds software and it's valuable software, and you can create multiple apps that generate revenue and add value to people's lives, that sounds pretty good to me. So in today's episode, I brought on Ras Mic and he clearly explains the entire process. By the end of this episode, you're going to understand how to set your own software factory up yourself. So enjoy the episode. I can't wait to see what you build. There's a reason why this concept is going viral, and I'll see you at the end. Today's episode is brought to you by Brex. My company's been on Brex for a year and a half, and I started because I kept hearing companies like Forcel, OpenAI, Anthropic were using Brex, and I figured if they're using it, why shouldn't I? It's been a game changer. The thing that got me is how smooth it is. It's got high limit cards, it's got banking, it's got AI that handles the back office busy work, like expense reports, which I don't want to do on its own. It's really just built for this agentic world. If you're building something new, it's time to get Brex. Check it out at brex.com/solutions/startups.
Link in the description.
Mickey, welcome back to the pod. By the end of this episode, what are people going to learn?
Ras Mic (1:40)
We're going to understand what this bizarre phrase software factory means. I'm actually going to show you how I run mine. It's a lot easier than you think. And it's definitely model and harness agnostic. So you don't have to purchase some different product to have a software factory. It's going to be fun and it's going to be simple.
Greg Isenberg (1:56)
Okay, so you're going to explain what it is, why it matters, how it works, how to think about it by the end of this. People are just going to be able to boot up their own software factory if they want, or if they think, you know what, this Ras Mic guy, I don't like software factories. I don't like what he's saying. They can pass.
Ras Mic (2:15)
100%.
With the term software factory, there's been a lot of like startups who've started. And you know, I'm not here to knock anyone's hustle, but a software factory is completely harness and model agnostic. Meaning, it doesn't matter what model you use. It doesn't matter what harness you use.
It should work, right? Because a software factory is more about someone's workflow skills and domain knowledge. And it's packed up in specific skills that they use in their development process. Now, I want everyone to think like the last app that they built. You probably went on Codex, Cloud Code, Cursor, whatever it is, and you just typed, right? You said, I want to build this. And it built it out for you. You saw it, and you didn't like it. And then you made some changes, right? And you saw the changes. Maybe you liked it. You deployed it to Vercelor, to production, and you're good to go. Or you kept on iterating. That's the process. The whole point of a software factory is in each step of the development process, how can I best maximize the model's capability to get the greatest output, right? And also, how can I move fast, right? Because if we're using the term factory, there's some sort of structure and speed and conveyor belt nature that allows me to ship as quick as possible without losing quality. That's the long bloated Michael Shamalis translate definition of software factory.
I haven't lost anyone, hopefully, Greg.
Greg Isenberg (3:42)
That was perfect. Okay, so understood. But like, why does that matter?
Ras Mic (3:47)
The reason why it matters is intelligence is continuing to increase. We have amazing models like GPT-6 Astra. A good software factory allows you to systemize and use these models in a very efficient way versus just typing in and continue to go back and forth. And I think it's better I just show you how mine works to give people an idea. Now, I'll give my skills are available for free, no charge, nothing like that, but I don't want you to blindly copy me. I would like for you to think about it, understand the process and then apply it yourself.
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