Town raises $108 million at a $1 billion valuation for AI teamwork assistants

Town has secured a $108 million Series B at a $1 billion valuation, putting fresh capital behind AI assistants designed to work with one another. Forerunner Ventures and Menlo Ventures co-led the October 19, 2026, financing. Menlo brings more than money: the firm says it has used Town since June.

Existing investors a16z and First Round Capital also participated. Other backers included Better Tomorrow Ventures, Precedent.vc, Scribble Ventures, Serena Ventures and Sparked Ventures, according to Town’s announcement.

The financing follows Town’s public launch in June, when it announced a $55 million Series A. Town says it reached seven figures in annual recurring revenue within weeks—a measure of recurring sales expressed on a yearly basis, rather than revenue collected over a full year.

Menlo says it put the whole firm on Town that month. Its account describes assistants sorting inboxes, preparing briefings and following up on commitments. Before employees entered prompts, the assistants had read their calendars and inboxes, proposed work and drafted messages in their voices, the investor says.

The firm also credits Town with catching forgotten commitments and surfacing useful contacts. Those examples are a customer’s firsthand account, but come from an investor now co-leading the round—not an independent evaluation of the software.

Town did not disclose the underlying customer or team counts in the announcement. The growth multiples therefore show the pace of expansion, but not the size of either group.

Town calls each person’s assistant a Townie. It connects to email, documents, calendars and other work systems, learning about that person’s relationships, projects and writing style. The company describes coordination between these assistants as the way to move beyond helping one employee at a time.

Townies can ask one another questions and hand off work, the company says. Menlo describes assistants getting information from a colleague’s Townie without either employee stepping in, or comparing calendars to agree on a meeting time. It says Town has more than 60 integrations, spanning customer management, project tracking, coding and finance tools.

Teams can also share workflows. Town gives the example of a business operations team updating its sales call-preparation process with new competitive information. Each sales representative’s assistant would then use that revised process, rather than requiring separate updates. Townies can also communicate with customers, partners and job candidates outside the company through email and text.

Town says each assistant still works for its individual user: it shares only what that person would share, requests permission when needed and brings decisions requiring human judgment back to them. Menlo describes a separate default safeguard: the assistant drafts messages rather than sending them.

• Each company owns the context its assistants build.
• Connected customer data does not train models by default.
• Town says it is SOC 2 Type 2 compliant and provides a public data processing agreement.

The company says it uses models from multiple major AI labs, selecting models by task rather than tying customers to one provider. Menlo’s longer-term investment thesis reaches further: it envisions Town becoming the place employees start their day, with an updated view of priorities across tools. That remains the investor’s vision for the product’s direction.