I like the name. It's in Austin, so lots of stuff around there is called Capital something or other. This takes that trend and makes it punny.

It's better than most of the YC clones' names.

Actually this could be a take off from "Nightmare Factory", a haunted house here in Austin that was around for a few years (Not here anymore - House of Torment and the Horror Haunted House are the two big ones now.) When I saw the name, "Capital Factory", I immediately thought of "Nightmare Factory" anyway, but maybe that's just me! :-)