Tolan raises $30 million for its AI companion app

In short: Tolan, an AI companion app, raised $30 million in new funding as it reports more than 250,000 active users.

What happened

Tolan is an app that lets people chat with an AI companion, which is software that talks back like a helpful assistant. The company says the app is meant to help users manage daily life, work through emotions, and stay on track with goals.

TechCrunch reports that Tolan raised another $30 million from investors including Union Square Ventures, Khosla Ventures, and Homebrew. The company has not shared its new valuation, but a separate estimate cited in the report puts it above $268 million.

Tolan says it makes money through paid, tiered memberships, which are subscriptions with different levels of access. The company told another outlet, Upstarts Media, that its yearly subscription revenue is now in the double digit millions. Tolan also claims users had more than 70 million conversations in the past year, and that around 70% of users are women and 40% are parents.

Why it matters

Apps like Tolan show that more people are using chatbots for personal support, not just for work or school. For regular users, that can feel like having a pocket coach (like a daily planner that can also talk things through). At the same time, emotional support tools come with safety and trust questions, especially as lawsuits have accused some AI chat apps of contributing to serious harm.

Source: TechCrunch AI