Tolan, the AI companion app built by start-up Portola, has raised $30 million in new funding, TechCrunch reported on 19 October 2026. The round roughly doubles the company's total raised to about $60 million.
What we know
Union Square Ventures, Khosla Ventures and Homebrew took part, according to TechCrunch. Global Dating Insights reported that Union Square Ventures led. The company has not disclosed a valuation; PitchBook estimates it at more than $268 million, up from a previous $120 million.
Tolan says annual recurring revenue is in the double-digit millions and has more than doubled year on year. It has about 250,000 active users and logged more than 70 million conversations in the past year. Revenue comes from tiered memberships, and Global Dating Insights reported the company is not yet profitable and plans to add its first free tier.
The user base is unusual for the category: about 70% women and 40% parents, with one in six caring for an ageing parent. The app launched in February 2025 and is led by chief executive Quinten Farmer, who founded the company in 2023 with Evan Goldschmidt and Ajay Mehta. It is moving beyond conversation into meal planning, shopping and family organisation.
Why it matters
The round closed a week after Character.AI filed for Chapter 11, and the contrast is the story for investors. Tolan has a fraction of the audience but charges for full access, so revenue per user is far higher. On PitchBook's estimate the company is valued at more than $1,000 per active user, a figure that only makes sense if subscriptions keep renewing.
The planned free tier is the risk to watch. It widens the funnel but brings in the heavy, unpaid usage that weighed on larger rivals. The move into household tasks also changes the comparison set, placing Tolan against general-purpose assistants from far bigger companies; TechCrunch named Meta's Muse as a competitor. This round and comparable financings are listed in our deal tracker.
What to watch
Paid conversion once the free tier launches, and whether the company discloses a precise revenue figure in its next raise.
Written by the AI Companion Capital newsroom from public reporting, credited above. Image via TechCrunch.
