San Francisco-based Town has raised $108 million in Series B funding at a $1 billion valuation, just four months after publicly launching its AI assistant platform.
The round was co-led by Forerunner Ventures and Menlo Ventures, with continued participation from Andreessen Horowitz and First Round Capital. Other investors include Better Tomorrow Ventures, Precedent.vc, Scribble Ventures, Serena Ventures and Sparked Ventures.
The funding follows a $55 million Series A announced in June 2026, bringing Town's publicly announced financing to at least $163 million.
Founded by Jean-Denis Greze and Tony Vincent, Town combines experience from several major technology companies.
Greze previously served as chief technology officer of Plaid, where he helped scale the company's engineering operations as annual recurring revenue grew from roughly $10 million to more than $300 million. Vincent previously led product design at Dropbox, founded and sold two companies, and worked on applied AI products at Google.
The founders had previously worked together at Dropbox before reuniting to build Town.
The company is developing AI assistants called Townies, designed to perform work on behalf of individual employees while collaborating across teams and organizations.
Rather than functioning as standalone chatbots, Townies connect to business systems including email, calendars, documents and enterprise applications. They can help prepare meetings, coordinate projects, draft communications, retrieve information and execute recurring operational tasks.
Town's central idea is that improving individual productivity does not automatically improve organizational productivity.
An employee might use AI to complete a task in minutes, but the next step could still depend on waiting for information, approval or work from another employee. Those dependencies create delays even when individuals become more efficient.
Town is attempting to automate parts of that coordination.
Its latest product capabilities allow Townies to communicate with one another, ask questions, share authorized context and transfer work between employees. The assistants can also interact with external participants, including customers, partners and job candidates, through email and text.
The system is designed around individual permissions. Each assistant is supposed to share only information its user is authorized to disclose and request human approval when decisions require it.
Town has also introduced shared workflows that let companies update processes centrally. For example, a change to a sales team's competitive intelligence can automatically influence how employees' assistants prepare future customer meetings.
The company says it reached seven figures in annual recurring revenue within weeks of its June public launch. Since July, its number of paying customers has increased fourfold, while the number of paying teams has grown ninefold.
Town uses models from multiple AI providers rather than relying on a single foundation model company. It also reports SOC 2 Type 2 compliance and says customer-connected information is not used to train models by default.
The enterprise AI assistant market is increasingly competitive. Microsoft, Google, OpenAI and specialized startups are all developing agents capable of accessing business data and performing workplace tasks.
Town's differentiation is its emphasis on collaboration between personal assistants rather than automating isolated tasks.
That creates an opportunity to become a coordination layer across enterprise software, but it also introduces technical and organizational challenges. Employees must trust agents to represent their intentions, companies must control access to sensitive information, and interconnected workflows must remain reliable as more tasks become automated.
The company's early revenue traction is notable given the short period since its public launch, although Town has not disclosed its exact recurring revenue or profitability.
The next test will be whether the company can convert rapid early adoption into sustained enterprise usage, demonstrating that networks of collaborating AI assistants create measurable improvements in how organizations operate.