Tolan, an AI companion app designed to help people manage daily life, navigate relationships and emotions and achieve their goals, has secured a further $30 million from investors including Union Square Ventures, Khosla Ventures and Homebrew, according to Upstarts Media. The round doubles Tolan’s total funding and lifts its valuation above the previous $120 million, with PitchBook estimating it at more than $268 million.
Users interact with Tolan through a cartoonish character that offers support and helps them work through their to-dos. The company earns revenue from tiered memberships and said its annual recurring revenue has reached the double-digit millions. Tolan claims more than 250,000 active users, who have held over 70 million conversations in the past year, with around 70% of users being women and 40% parents.
Tolan stands out in a sector where rivals have struggled, as Friend’s pendant-based companion drew widespread criticism and Character.AI recently filed for bankruptcy. However, it may face growing competition from AI agents that help users plan and complete tasks, such as Meta’s Muse, which features an avatar and is planned as a future hardware product.
The startup must also manage the risks of AI-driven emotional support, as several lawsuits have alleged that chatbot interactions contributed to users’ deaths.
