AI assistant startup Town hits $1 billion valuation with $108 million Series B

Town, a San Francisco startup building AI assistants for workplace teams, has raised a $108 million Series B at a $1 billion valuation, the company announced on October 19.

Forerunner Ventures and Menlo Ventures co-led the round, which comes about four months after Town launched publicly in June. The company has now raised at least $160 million, TechCrunch reported.

Returning and new investors

Existing investors a16z and First Round Capital participated, along with Better Tomorrow Ventures, Precedent.vc, Scribble Ventures, Serena Ventures and Sparked Ventures. Angel investors include Scott Belsky, Brendan Foody, Josh Silverman and Romain Huet.

The Series B follows a $55 million Series A announced in June. Index Ventures had previously signed a term sheet to lead the round but withdrew in September after Instinct, a rival AI assistant startup in its portfolio, raised a conflict-of-interest concern.

Assistants that coordinate across teams

Town gives each employee an AI assistant, called a “Townie,” that connects to email, documents, calendars and other work systems. Townies can ask each other questions and hand off work, sharing only what their user would share and escalating decisions that require human judgment.

The company also introduced shared team workflows, which let a team update a process once and have every member’s assistant apply the change. Townies can now work with customers, partners and candidates over email and text.

“More people are trusting AI assistants with real tasks, and work is where they need the most help,” said Jean-Denis Greze, Town’s co-founder and CEO and a former chief technology officer at Plaid.

Revenue growth since launch

Town said it reached seven-figure annual recurring revenue within weeks of launch. Since July, its paying customers have grown fourfold and paying teams ninefold, according to the company. It did not disclose total customer or revenue figures.