The Pulse
Town Raises $108 Million at a $1 Billion Valuation
Town raised $108 million in a Series B co-led by Forerunner Ventures and Menlo Ventures, valuing the AI assistant startup at $1 billion. The San Francisco company says its Townies can coordinate work across teams and that paying customers h
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Town raised $108 million in a Series B on October 19, putting the San Francisco AI assistant startup at a $1 billion valuation. Forerunner Ventures and Menlo Ventures co-led the round, which came four months after Town’s public launch and its $55 million Series A in June. The company says it reached seven-figure annual recurring revenue within weeks of launch.
Town has now raised at least $160 million, according to TechCrunch. Andreessen Horowitz and First Round Capital joined the new round, alongside Better Tomorrow Ventures, Precedent.vc, Scribble Ventures, Serena Ventures and Sparked Ventures. The financing marks a swift jump in valuation for a startup founded two years ago by former Plaid chief technology officer Jean-Denis Greze.
Town wants assistants to work across teams
Town’s product gives each employee an AI assistant called a Townie. It connects to work systems such as email, documents and calendars, then uses information about a person’s projects, relationships and communication style to help with tasks. The new pitch is that Townies can coordinate with one another instead of stopping at an individual employee’s inbox.
Town says assistants can ask each other questions, hand work off and share information their users would approve. They can also communicate with customers, partners and candidates by email and text. A shared-workflow feature is designed to spread updated business information across a team’s assistants: if a company changes its sales call-preparation process, each representative’s Townie can use the revised guidance.
“More people are trusting AI assistants with real tasks, and work is where they need the most help.”
Jean-Denis Greze, co-founder and CEO of Town
Growth figures come from Town
The company says paying customers have grown fourfold since July and paying teams ninefold. Town also says thousands of businesses now rely on Townies each day. Those are company-reported measures; the announcement does not provide customer counts, revenue figures or details about how frequently teams use the assistants.
Town’s funding announcement describes a model-flexible system that selects models from major AI labs for different tasks. The company says customers own the context their assistants build, connected data is not used to train models by default, and Town is SOC 2 Type 2 compliant. The security and data-control claims matter because the product is designed to connect to employee communications and other internal work systems.
The test is whether coordination saves time
Town is betting that assistants become more useful when they can move work between colleagues, not just complete tasks for one person. That approach also gives the software a wider job: handling permissions and context across a team while returning decisions that need a human’s judgment. Funding and customer growth show investor confidence and early uptake, but they do not establish how much time the system saves or how reliably it handles shared work.
The company’s new valuation places a substantial expectation on that team-wide use case. Town has announced the funding and described how its Townies are meant to collaborate; the available growth figures do not yet show how broadly customers have adopted those shared workflows or what measurable results they deliver.