Tolan, an AI companion app that helps users manage daily tasks, relationships, and goals, has raised $30 million in new funding, according to TechCrunch. The round was backed by Union Square Ventures, Khosla Ventures, and Homebrew, doubling the startup's total raised and pushing its valuation beyond the previous $120 million. Tolan did not disclose a new valuation, though PitchBook estimates it at more than $268 million with medium confidence.
The app presents users with a cartoonish character meant to offer support and guide them through their to-dos. Tolan generates revenue through tiered memberships, and the company told Upstarts Media its annual recurring revenue is now in the double-digit millions. It claims more than 250,000 active users and over 70 million conversations in the past year, with roughly 70% of users being women and 40% being parents. TechCrunch notes the app has anecdotally appealed to neurodivergent people who may benefit from extra emotional or organizational support.
The funding contrasts with recent troubles elsewhere in the AI companion space. Character.AI filed for bankruptcy after its founder returned to Google, with remaining staff transitioning to Disney. Friend's pendant-based companion was widely mocked, with critics calling it cringe and soulless. Tolan, by comparison, appears to have found a balance between being helpful and not feeling too strange.
Still, Tolan faces growing competition from a newer wave of AI agents that help users plan and execute tasks rather than just talk through them, such as Meta's avatar-based Muse. The company also carries the legal risks of offering AI-powered emotional support, as lawsuits have been filed against general-purpose AI app makers alleging chatbot interactions contributed to users' suicides.