Cognition's executive hire sparks corporate ethics row, exposing venture capital conflicts of interest

AI startup Cognition has hired Chris Degnan as chief revenue officer, but the move has ignited a public dispute with his former employer Factory over alleged breach of confidentiality. Factory CEO Matan Grinberg claimed he fired Degnan from his board observer position on September 30, 2026 after discovering the executive had been in ongoing negotiations with Cognition—Factory's direct competitor—while attending board meetings and accessing confidential information about the company's product roadmap and competitive positioning. Cognition announced Degnan's appointment just 52 minutes later that same morning.