Union Square Ventures, Khosla and Homebrew are leading Tolan’s Series B funding round; the app claims to have 250,000 active users, 70 million conversations in a year and recurring revenue in the tens of millions.
Tolan, which offers an AI companion in the form of a cartoon-style character, has secured a $30 million Series B funding round from Union Square Ventures, Khosla Ventures and Homebrew. The start-up has thus doubled its total funding to $60 million. PitchBook estimates its valuation at over $268 million, up from $120 million in the previous round.
A predominantly female user base
The app helps users organise their daily lives, manage their emotions and relationships, and make progress towards their goals. It has over 250,000 active users and has recorded 70 million conversations over the past year. Seven out of ten users are women, 40 per cent are parents, and the service is particularly popular with neuroatypical people seeking support to organise their lives.
Funded by a multi-tiered subscription model, Tolan generates annual recurring revenue in the tens of millions of dollars. It stands out as an exception in a sector where several AI companions, such as Friend and Character.AI, have faced fierce criticism.
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