AI Companion App Tolan Raises $30 Million, Reaches 250,000 Active Users
Tolan raised $30 million in October from Union Square Ventures, Khosla Ventures, and Homebrew, doubling its total funding and pushing its estimated valuation above $268 million. It reports 250,000 active users and 70 million conversations in the past year.
AI companion app Tolan has raised $30 million in new funding, doubling its total capital raised to date and pushing its estimated valuation to more than $268 million, according to PitchBook data cited with “medium confidence.” The round was announced in October 2026.
Investors in the latest round include Union Square Ventures, Khosla Ventures, and Homebrew. Tolan did not disclose its new valuation, though its previous valuation stood at $120 million. The company’s annual recurring revenue is now in the “double-digit millions,” according to figures shared with Upstarts Media.
Tolan’s app uses a cartoonish character to help users manage daily tasks, navigate relationships and emotions, and work toward personal goals. Users interact with the character through conversation, and access to all features requires a paid tiered membership.
The company reports more than 250,000 active users who have logged over 70 million conversations in the past year. Approximately 70% of its users are women and 40% are parents. The app is also said to appeal to neurodivergent users who may benefit from emotional support or help organizing tasks.
The funding comes as the AI companion space has seen notable turbulence. Character.ai recently filed for bankruptcy following its founders’ return to Google, with remaining staff transitioning to Disney, which acquired some of its assets. Friend, another competitor, drew widespread criticism from users and media outlets over its pendant-based AI companion product.
Tolan may face growing competition from AI agent platforms that go beyond conversation to help users plan and execute tasks. Meta, for example, has given its AI agent Muse a visual avatar and has plans for a future hardware product.
The company also operates in a legally sensitive area. Multiple lawsuits have been filed against AI app makers alleging that chatbot interactions contributed to user suicides, a risk Tolan will need to manage as it scales.