Town raises $108M at $1B valuation to make AI assistants work as a team
What's the deal? Town, a San Francisco startup that gives each worker an AI assistant, has raised $108 million in a Series B that values it at $1 billion. Forerunner Ventures and Menlo Ventures co-led the round, with participation from Andreessen Horowitz and First Round Capital.
What's the endgame? Town gives each person an assistant, called a Townie, that connects to their email, documents, calendar, and core work systems. It learns their projects and voice, then takes work off their plate. The Series B funds Town's push to extend those assistants from individuals to entire teams.
Townies can now ask each other questions and hand off tasks, the company says. Each one shares only what its person would share, asks permission when needed, and returns decisions that need a human eye. They can also work with customers, partners, and candidates outside the company over email and text.
Why now? The round lands just months after a $55 million Series A in June 2026, led by a16z. Town reports fourfold growth in paying customers and ninefold growth in paying teams since July, with thousands of businesses now using Townies daily.
The step-up puts Town at the top of its class. By amount, the round ranks in the first percentile among 85 United States Series B rounds in legal over the trailing 48 months.
What could go wrong? Town hands AI agents access to sensitive inboxes and systems, which demands trust. The company says each customer owns the context its Townies build and can take it along if it leaves; by default, Town does not use connected data to train models. It is SOC 2 Type 2 compliant and uses models from several major labs to avoid locking customers into one.
"AI has made each of us faster on our own. Now, it can make teams faster together," said Jean-Denis Greze, co-founder and chief executive officer of Town.
The signal: Investors are betting big on AI agents built to execute work, not just answer questions. Consumer assistant Instinct raised $1 billion at a $10 billion valuation in September, signalling how fast the category is heating up. Town's distinction is collaboration — assistants that hand off tasks across a team — though funding and customer growth are not yet proof such systems can deliver value at scale.
Read more: thenextweb.com
Image credit: Town
