Town has raised a $108 million Series B at a $1 billion valuation, less than five months after its $55 million Series A. Forerunner Ventures and Menlo Ventures co-led the round, and the announcement pairs the financing with a team product that lets employees’ AI assistants pass work to one another.
Each “Townie” connects to its user’s email, documents, calendar and other workplace systems, using that context to draft messages and perform recurring tasks. The new layer lets Townies ask one another for information, hand off work and use shared workflows. Town says an assistant shares only what its user would share and requests permission when needed.
Inc reported in July that employees at hair-color company Madison Reed had their Townies send weekly summaries to their manager’s assistant. That offered an early view of the team workflow, but Inc said Madison Reed and most other users it interviewed were still on free trials, so those examples did not yet establish durable paid adoption.
Town makes money from individual and team subscriptions, with usage metered through credits on paid plans. Its standard Team plan is listed at $59 per seat per month when billed annually and pools credits across participating employees.
The company says it reached at least $1 million in annual recurring revenue within weeks of its June public launch. Town also says paying customers have quadrupled and paying teams have increased ninefold since July, though it has not disclosed the starting counts or retention behind those growth rates.
Connecting separate assistants also raises the cost of a permissions mistake. In an August interview with Platformer, Chief Executive Jean-Denis Greze said a team knowledge base could expose private material if it simply pooled individual files. He described the initial safeguard as using explicitly connected team data, keeping individual inboxes out of the shared library and letting users decide what passes through.