Tolan, the AI companion app formerly known as Portola, has raised $30 million from Union Square Ventures, Khosla Ventures and Homebrew, according to an announcement on 19 October 2026 reported by TechCrunch and remio. The round doubles the company's total funding.
What we know
TechCrunch reported that Tolan did not disclose a new valuation, though PitchBook estimates it at more than $268 million, up from a previous figure above $120 million. Earlier funding included a $20 million round in 2025 and a $10 million seed.
The company told reporters it has more than 250,000 active users and has handled over 70 million conversations in the past year. Around 70% of users are women and 40% are parents, according to Tolan's team, and annual recurring revenue is in the double-digit millions from tiered memberships.
Tolan offers a cartoon-style character that users talk to over time. remio reported that investors see users who begin with companionship later relying on the same character for practical tasks such as household organisation and family planning.
Why it matters
Tolan's pitch addresses a weak spot in the companion market: emotional-support apps can struggle to justify subscriptions once novelty fades, and they attract regulatory scrutiny. Shifting towards everyday assistance gives the product a utility case and a broader, less contentious positioning.
The user mix also stands out. A base skewed towards women and parents differs from the profile of many romance-led companion apps, and may make Tolan more attractive to mainstream investors at a time when Character.AI's bankruptcy has soured sentiment. The trade-off is competition: once a companion handles to-do lists, it competes with general assistants from much larger platforms.
What to watch
Whether Tolan's revenue growth holds as it adds assistant features, and how it handles age assurance as companion rules tighten in the US.
Written by the AI Companion Wire newsroom from public reporting, credited above. Image via remio.
