Town raises $108 million at a $1 billion valuation to give every employee an AI assistant that talks to everyone else's

Town, a San Francisco startup that gives each person at work an AI assistant called a Townie, said on Monday, Oct. 19, 2026, that it raised a $108 million Series B at a $1 billion valuation, co-led by Forerunner Ventures and Menlo Ventures.

The pitch for AI assistants has been "one person, one helper." Town is betting the real bottleneck is everyone waiting on everyone else, so it lets the assistants talk to each other. That is either the most useful idea in workplace software this year or a brand-new way for information to leak between departments; the whole company rests on the promise that a Townie only shares what its person would. A billion-dollar valuation four months after launch, on growth multiples rather than revenue figures, says investors are paying for that promise up front.

Town announced a $108 million Series B at a $1 billion valuation, co-led by Forerunner Ventures and Menlo Ventures, with existing investors a16z and First Round Capital, plus Better Tomorrow Ventures, Precedent.vc, Scribble Ventures, Serena Ventures, Sparked Ventures and angels including Brendan Foody, Scott Belsky and Varun Anand. A Series B is a later private funding round. Valuation is the price the new money implies for the whole company. Those terms are Town's.

Town launched publicly in June 2026 with a $55 million Series A and says it reached seven figures of annual recurring revenue within weeks. Annual recurring revenue is subscription money counted as if it lasts a year. Seven figures means more than $1 million a year; Town did not give an exact number. Since July, paying customers have grown 4x and paying teams 9x, Town says. TechCrunch reports it has raised at least $160 million to date. Those figures are Town's and TechCrunch's. Town did not give exact revenue, how many companies pay, or what plans cost.

Co-founder and chief executive Jean-Denis Greze is Plaid's former chief technology officer, TechCrunch reports. The other co-founder is Tony Vincent. Those lines are TechCrunch's and Town's.

Each person gets a Townie — Town's name for an AI assistant — that connects to their email, documents, calendar and core work systems and learns their relationships, projects and voice. New with this announcement: Townies can work directly with each other, asking questions and handing off work, and with customers, partners and candidates outside the company over email and text. Town says each Townie "shares only what that person would share" and asks permission when needed. Those lines are Town's description.

Teams can set shared workflows once. Town's example: an updated competitor battle card flows into every sales representative's Townie call prep. A battle card is a short brief on how to sell against a rival. That example is Town's.

Town says it uses models from all the major AI labs, picking one per task. By default, it says, nothing a customer connects trains a model. It is SOC 2 Type 2 compliant and publishes its data processing agreement. SOC 2 Type 2 is an auditor's report on how a company handles customer data over time. Menlo's Shawn Carolan said Menlo backed Siri in 2008 and "Town has wisely chosen business over pleasure." Those lines are Town's and Carolan's, as Town prints them. No buyer names appear in the announcement.

Greze said: "AI has made each of us faster on our own. Now, it can make teams faster together." That quotation is his, as Town prints it.

In plain terms, Town said on Monday that it raised $108 million at a $1 billion valuation, four months after a public launch, to sell AI assistants that can talk to each other across a company. The growth figures and the "shares only what that person would share" line are Town's. Exact revenue, buyer names and plan prices are not in the announcement.