Town raises $108M at $1B valuation as AI assistants learn to work across teams
Tech Funding News Abhinaya Prabhu ● Covered by 3 sources
Town just raised $108M at a $1B valuation for AI assistants that can hand work to each other. That’s a big bet that teams will pay for trust, not just speed.
Based on reporting by Tech Funding News, Abhinaya Prabhu — read the original for the full story.
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Town has closed a $108 million Series B at a $1 billion valuation, with Forerunner and Menlo co-leading the round. Andreessen Horowitz and First Round joined in again. The company is still young, but the price tag landed less than five months after it publicly launched its AI assistant.
The pitch is simple enough to fit on a slide and awkward enough to be true. AI can make one person faster, but a lot of work still sits in limbo while someone waits for a model, an app login or a reply from another team. Town is betting that the next step is not a better solo assistant, but assistants that can work across a company and ask each other for what they need.
That idea grew out of a narrower business. Town started in 2024 as AI tax prep for small businesses, then raised an $18 million seed round in March 2025 before widening into the general assistant it now calls a Townie. The public launch came in June with a $55 million Series A led by a16z. Since then, the company says paying customers have grown fourfold and paying teams ninefold since July, and that it hit at least $1 million in annual recurring revenue within weeks of launch.
Each employee gets a Townie connected to email, documents, calendars and work systems. Menlo says there are more than 60 integrations, including Salesforce, Jira and GitHub, and that the assistant drafts by default rather than sending messages on its own. Town says the assistants now talk to one another, can hand off tasks, and can deal with customers, partners and job candidates by email and text. The company says it shares only what a person would share, asks permission when needed, and does not train on connected customer data by default.
The backers are buying the trust story as much as the product. Menlo says it put its entire firm on Town in June. Forerunner’s Kirsten Green said the product stopped her in her tracks. Shawn Carolan at Menlo framed the bet as business work, not consumer fun, and the firm points to the founder’s Plaid background, SOC 2 Type 2 compliance, and the fact that the system drafts instead of sends. The market is already crowded with agents and assistants. The harder question is whether companies will keep paying once those assistants start passing work around inside the walls.
My take — AI-written commentary, not fact-checked reporting
This is the right kind of AI pitch: less magic, more plumbing. The industry has spent two years selling solo copilots, and now it’s discovering that companies mostly need machines that can survive meetings, permissions, and the occasional overcaffeinated colleague. The trust bit is not a footnote; it is the whole product, which is exactly why the valuation is so bold.
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