Tolan snags $30M for its AI companion that helps users navigate life

Tolan, the AI companion designed to help people manage their daily lives, navigate relationships and emotions, and accomplish their goals, has just expanded its runway with another $30 million in capital.

The startup’s investors in the latest round include Union Square Ventures, Khosla Ventures, and Homebrew, doubling the total amount it has raised to date and pushing its valuation beyond the previous $120 million, according to a new report by Upstarts Media. (The startup didn’t disclose its new valuation, but PitchBook estimates it at more than $268 million, with “medium confidence.”)

Users engage with Tolan’s app through a cartoonish character that’s meant to offer support and help them get through their to-dos.

Tolan generates revenue from its tiered memberships, which are required for full access to all features. The company told Upstarts Media its annual recurring revenue is now in the “double-digit millions.”

The startup is one of the few AI companions that have found some traction, as it claims to have more than 250,000 active users who have had more than 70 million conversations over the past year. Around 70% of its users are women, and 40% are parents, Tolan’s team told the news outlet. (Anecdotally, the app is said to appeal in particular to neurodivergent people, who may benefit from additional support, whether that’s emotional support or help with organizing tasks.)

Compared with other companions, Tolan seems to have found a balance between being helpful without being perceived as too weird. Compare that with the public shaming that Friend’s pendant-based AI companion faced; users dubbed Friend “very cringe“, The New York Times called it “hated,” and Wired said it “has no soul.”

Meanwhile, another former top contender in the space, Character.ai, recently filed for bankruptcy after its founders’ return to Google. (Its remaining staff is transitioning to Disney, which bought some of its assets.)

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