Tolan raises $30 million for its AI companion app

Tolan, an AI companion app designed to help people manage daily life, relationships and emotions, has raised another $30 million, according to TechCrunch. The company’s latest investors include Union Square Ventures, Khosla Ventures and Homebrew.

The funding doubles Tolan’s total capital raised to date and pushes its valuation above its previous $120 million, TechCrunch reports, citing Upstarts Media. Tolan did not disclose its new valuation. PitchBook estimates it at more than $268 million, with “medium confidence.”

Tolan says it has more than 250,000 active users, who have had more than 70 million conversations over the past year. The company told Upstarts Media that about 70% of its users are women and 40% are parents. It generates revenue through tiered memberships, which are required for full access to all features. The company also told the outlet its annual recurring revenue is in the “double-digit millions.”

The app presents a cartoon character that offers support and helps users work through tasks. Tolan faces competition from AI agents that help people plan and organize, as well as risks tied to offering emotional support through AI. TechCrunch notes that multiple lawsuits against general-purpose AI app makers allege chatbot interactions contributed to users’ suicides.