Town raises $108M Series B at $1B valuation for team AI assistants
San Francisco startup Town secures funding to expand individual AI helpers into collaborative team agents that share workflows and permissions.
Key points
- Town raised $108 million in a Series B round, valuing the company at $1 billion.
- Forerunner Ventures and Menlo Ventures co-led the investment announced on Monday.
- The product expands from individual assistants to team-based agents that coordinate tasks.
San Francisco startup Town announced on Monday that it has raised $108 million in a Series B funding round, achieving a $1 billion valuation. The capital injection supports the company’s expansion from individual AI assistants to collaborative team agents that can coordinate complex workflows across organizations.
Forerunner Ventures and Menlo Ventures co-led the financing round, according to The Next Web. Existing backers including a16z, First Round Capital, Better Tomorrow Ventures, Precedent.vc, Scribble Ventures, Serena Ventures, and Sparked Ventures participated in the round. Angel investors such as Brendan Foody and Josh Silverman also contributed to the latest funding tranche.
Product evolution and market growth
Town provides each employee with an AI assistant known as a Townie, which connects to email, documents, calendars, and core work systems. The assistant learns the user’s relationships, projects, and communication style to handle tasks autonomously. The company is now extending these capabilities to enable assistants to interact with one another across teams.
According to Town, these team-based assistants can ask each other questions and hand off work while respecting individual data boundaries. Each agent shares only information its user would approve, seeks permission when necessary, and returns decisions to the human owner. Townies can also engage with external customers, partners, and candidates via email and text.
Business metrics and data governance
Town launched publicly in June 2026 after securing a $55 million Series A. The company reached seven figures in annual recurring revenue within weeks of launch. Since July, paying customers have grown fourfold, while paying teams have increased ninefold. Thousands of businesses now use the service daily, according to co-founders Jean-Denis Greze and Tony Vincent.
Town states that customers own the context their assistants build and can export it if they leave. By default, the platform does not use connected customer data to train models. Town utilizes models from major AI labs, selecting the best tool for each task to prevent vendor lock-in. The company is SOC 2 Type 2 compliant and publishes its data processing agreement.
What should you do?
Security and technology professionals should monitor how AI agents handle cross-team data sharing and permission requests. Evaluate whether the platform’s default data usage policies align with your organization’s privacy requirements. Review the published data processing agreement to understand liability and data retention terms before deployment.
Background: SOC 2
SOC 2 is an auditing procedure that ensures service organizations manage your data properly. It focuses on security, availability, processing integrity, confidentiality, and privacy. The report proves your controls work in practice, giving clients confidence that their information remains safe while you handle it.
Read the full guide: SOC 2 Compliance: What It Means and How Auditors Verify Trust
What to do and how to stay safe: Town
- Assess how the AI assistant requests and grants permissions for sharing data between team members.
- Verify that the platform’s default settings prevent using your proprietary data for model training.
- Confirm the vendor’s SOC 2 Type 2 compliance status and review their published data processing agreement.
- Monitor the assistant’s interactions with external parties to ensure they align with your communication policies.
Step-by-step guide: Prompt Injection Warning Signs: How to Spot AI Manipulation
General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
How much funding did Town raise in its latest round?
Town raised $108 million in a Series B round that values the company at $1 billion.
Which venture firms led the investment?
Forerunner Ventures and Menlo Ventures co-led the Series B funding round.
How does Town handle customer data for model training?
By default, Town does not use anything a customer connects to train a model.
