Town’s Breakthrough $108M Raise Propels It to Unicorn Status
Quick Reads
- Town’s Breakthrough $108M Raise values the AI startup at $1 billion, earning it unicorn status after its Series B funding round.
- Forerunner Ventures and Menlo Ventures led the round.
- Andreessen Horowitz, Serena Ventures and First Round Capital also joined.
- Town has now raised $160 million in total, including a $55 million Series A in June.
- Town gives each employee an AI assistant called a townie, which collaborates with their colleagues’ townies.
Town unicorn status became official on Monday as Town’s breakthrough $108M raise valued the AI work assistant startup at $1 billion. According to SiliconANGLE, the company secured the funding through a Series B round led by Forerunner Ventures and Menlo Ventures. The milestone comes just weeks after Town launched its first AI assistants, called townies, in June.
Forerunner Ventures and Menlo Ventures led the round. Andreessen Horowitz, Serena Ventures and First Round Capital also joined. The new money lifts Town’s total funding to $160 million. That figure includes a $55 million Series A that closed in June.
Jean-Denis Greze, the former Plaid chief technology officer, co-founded Town with Tony Vincent. Vincent previously built two startups, and Google and Dropbox each bought one. Greze and Vincent met at Dropbox, and that friendship eventually became Town. Meanwhile, Menlo’s partners say the startup already reached a revenue run rate in the millions.
Town targets businesses. Each employee receives a townie that connects to email, calendars and other core work systems. Townies talk to each other and share approved information. They can now also work with customers and other outside contacts.
Menlo tested the product on its own team. Its partners say townies caught forgotten commitments, pulled in missing context and surfaced hard-to-find contacts. Soon, the firm’s Slack filled with screenshots of those “moments of magic.”
Context is the real pitch. According to the founders’ announcement, townies learn how the CEO writes and who holds each buyer relationship. They also learn how the company runs its processes. Because every colleague has a townie, those assistants can work together. Moreover, Town says companies own that context and can take it elsewhere if they leave.
Going forward, the founders plan to spend the money on more integrations. Town’s unicorn status raises the stakes, however. The startup must now show that its AI assistants can deliver lasting value for businesses and justify its $1 billion valuation.
