Town, a San Francisco-based startup, has secured $108 million in a Series B funding round, reaching a valuation of $1 billion. The round was co-led by Menlo Ventures and Forerunner Ventures, with participation from existing investors Andreessen Horowitz and First Round Capital.
Founded in 2024, the company initially focused on AI-assisted tax preparation before pivoting to a general AI assistant platform. The startup previously raised $18 million in a seed round in March 2025 and $55 million in a Series A round in June 2025, bringing total funding to approximately $181 million.
The platform provides each employee with an AI assistant, known as a Townie, which integrates with email, calendars, and systems like Salesforce, Jira, and GitHub. These assistants are designed to learn individual workflows and can now communicate with each other to delegate tasks and share information across teams.
Town reports that it achieved $1 million in annual recurring revenue within weeks of its public launch. Since July, the number of paying customers has increased fourfold, while the number of paying teams has grown ninefold. The company maintains SOC 2 Type 2 compliance and does not train models on customer data by default.
