San Francisco-based AI startup Town has raised $108 million in a Series B funding round, reaching a $1 billion valuation just four months after its public launch. The funding, co-led by Forerunner Ventures and Menlo Ventures, supports the company’s development of AI assistants that can collaborate across business teams and interact with external customers.
The funding round announced on October 19 also included participation from Andreessen Horowitz, Serena Ventures, and First Round Capital. Town has raised at least $160 million since its founding, including a previously announced $55 million Series A round in June 2026.
Founded in 2024 by former Plaid chief technology officer Jean-Denis Greze and Tony Vincent, Town provides AI assistants designed to handle workplace tasks. The company reported reaching millions of dollars in annual recurring revenue within weeks of launching publicly.
Town Introduces Collaborative AI Assistants for Employees
Town’s platform provides each employee with a personal AI assistant called a Townie, which connects to email, calendars, documents, and other workplace applications. The assistant learns about the employee’s projects, professional relationships, and communication preferences to help complete daily tasks.
With its latest update, Townies can communicate directly with one another to exchange information, coordinate activities, and transfer tasks between employees. The assistants share information according to user permissions and request approval when necessary.
Town has also introduced capabilities that allow Townies to communicate with customers, business partners, and job candidates outside their organizations through email and text messages. According to the company, these interactions are designed to support business communications while keeping employees involved in decisions requiring their judgment.
Shared Workflows Allow Teams to Update AI Assistants Together
Alongside the funding announcement, Town introduced shared workflows that automatically distribute updated business processes across employees’ AI assistants. Previously, workers had to update their own Townies individually when procedures or information changed.
For example, when a business operations team updates its competitive analysis, the revised information can automatically become available to sales representatives’ Townies. Their assistants can then incorporate the latest information when preparing sales calls and related materials.
Town also said businesses retain ownership of the information their assistants collect and organize. The company uses AI models from multiple providers and states that customer information is not used to train models by default.
According to its official announcement, Town’s paying customer base has increased fourfold since July, while the number of paying teams has grown ninefold. The startup plans to expand its integrations and collaborative AI capabilities using the latest funding.
Featured image credits: Magnific.com
For more stories like it, click the +Follow button at the top of this page to follow us.