Town Raises $108 Million in Series B at $1 Billion Valuation

Town’s $108 million Series B financing values the San Francisco workplace AI company at $1 billion as it expands assistants that help employees coordinate work across teams.

Forerunner Ventures and Menlo Ventures co-led the round. Andreessen Horowitz, First Round Capital, Serena Ventures, Better Tomorrow Ventures, Precedent.vc, Scribble Ventures and Sparked Ventures also invested. Town’s total funding now stands at at least $160 million.

The company raised $55 million in a Series A that coincided with its public debut in June. Town is a two-year-old startup developing AI assistants for workplace tasks.

Its assistants, called Townies, connect to email, calendars and other core work systems. They can communicate with one another and share information approved for that purpose. Townies can also work with customers and other people outside a company.

Alongside the financing, Town introduced shared workflows that distribute new business information to employees’ Townies automatically. That setup removes the need for each worker to update an assistant individually. Town’s annual recurring revenue reached seven figures within weeks of its public launch.