Tolan, the AI companion app built by Portola, has raised $30 million in new funding, TechCrunch reported on 19 October. The round doubles the company's total funding and is intended to make the app more useful for managing day-to-day life rather than only for conversation.
What we know
TechCrunch reported participation from Union Square Ventures, Khosla Ventures and Homebrew. Tolan did not disclose its valuation; its previous valuation was $120 million, and PitchBook estimates the new figure at more than $268 million, according to TechCrunch.
The company says it has more than 250,000 active users who have held over 70 million conversations in the past year, and annual recurring revenue in the "double-digit millions". TechCrunch reported that about 70% of users are women and around 40% are parents. Revenue comes from tiered memberships. Khosla led Portola's $20 million Series A in July 2025.
Why it matters
Tolan's positioning, a friendly companion character rather than a romantic or sexual partner, is the part of the market investors seem most comfortable backing as regulation tightens around intimacy features and minors. Its user mix also stands out against a category often assumed to skew young and male. The move towards practical assistance is a hedge: utility gives users a reason to stay that does not depend on emotional attachment, which is precisely the dynamic lawmakers in New York and California are targeting. The open question is whether a companion can compete as a helper against general assistants from much larger platforms.
What to watch
Which practical features Tolan ships with the new money, and whether its retention holds as it shifts from chat towards tasks.
Written by the AI Companion Wire newsroom from public reporting, credited above. Image via TechCrunch.
