Town, an AI assistant built for teamwork, announced a US$108 million Series B funding round on October 19, 2026. The round was co-led by Forerunner Ventures and Menlo Ventures, and it values the company at US$1 billion. Existing investors a16z and First Round Capital also participated, alongside Better Tomorrow Ventures, Precedent.vc, Scribble Ventures, Serena Ventures, Sparked Ventures, and several notable angels.
Funding and Early Traction
Town launched publicly in June 2026 with a US$55 million Series A and reached seven digits of annual recurring revenue within weeks. Since July 2026, paying customers have grown 4x and paying teams are up 9x, according to the company. The new Series B round follows that rapid adoption and brings together leading venture firms to support the next phase of expansion.
The Gap in Current AI Assistants
Personal AI assistants can handle tasks such as dinner reservations, flight changes, and subscription cancellations, but they sit on the margins of the workday. Most meaningful work depends on other people, including updated models from finance, access to apps from operations leads, and input from field sales teams. Existing assistants cannot close this gap because personal tools know their user but cannot work with the team, while team bots cannot see individual inboxes or preferences.
How Townies Work Together
With Town, each person receives an AI assistant called a Townie that connects to email, documents, calendar, and the core systems they use. A Townie learns relationship context, projects, and personal voice, then takes work off the person's plate. These assistants can work directly with each other, as well as with customers, partners, and candidates outside the company over email and text.
Townies collaborate by asking each other questions, connecting information, and handing off tasks to move projects forward. Each assistant works for its person, shares only what that person would share, and asks permission when needed. Updates to shared workflows also flow automatically, so a change made by business operations can update call preparation for every sales representative.
Built for Business
Town turns scattered knowledge across an organization into a shared, compounding asset that helps the business grow smarter as it scales. The platform leverages models from all major AI labs, selects the best model for each task, and prevents customer lock-in with any single lab. By default, nothing a customer connects is used to train a model, and the company maintains SOC 2 Type 2 compliance with a public data processing agreement.
CEO Jean-Denis Greze said each Townie learns how its person works so it can take on core work, and Townies can ask each other questions and hand off work so no one is stuck waiting. Menlo Ventures Partner Shawn Carolan noted that his firm backed Siri in 2008 and sees a larger opportunity in business-focused AI. Forerunner Ventures, Menlo Ventures, a16z, and First Round Capital are among the investors backing Town.
The Series B round highlights growing investor confidence in AI tools designed for collaborative, business-critical work rather than personal convenience tasks. With a US$1 billion valuation and strong early traction, Town is positioning itself at the intersection of individual productivity and team execution. The funding is likely to support continued product development and expansion as organizations seek AI assistants that can work with the people and systems they already rely on.