# Tolan Raises $30 Million as AI Companion Tops 250,000 Active Users By John Kim Canonical URL: https://www.tokenpost.com/news/business/35212 Published: 2026-10-20T02:04:04.000Z Updated: 2026-10-20T02:04:04.000Z Section: Business > Its annual recurring revenue is in the double-digit millions of dollars, and women make up about 70% of its user base. Tolan raised $30 million in a round that doubled its total funding. Its AI companion app has more than 250,000 active users and has logged more than 70 million conversations over the past year. Union Square Ventures, Khosla Ventures and Homebrew participated in the latest round. The financing brings Tolan’s total raised to twice the amount it had secured before the deal. Tolan’s annual recurring revenue is in the double-digit millions of dollars. The company offers paid memberships in tiers, with a subscription required for access to the app’s full feature set. Users interact with a customizable character to discuss personal concerns and organize daily tasks. About 70% of Tolan’s users are women, and 40% are parents. The companion app operates alongside newer AI agents designed to help users plan, organize and complete tasks. Meta has added an avatar to its Muse AI agent and plans to bring the product to hardware, extending task-focused AI into a more character-driven interface. Other companion platforms have faced setbacks. [Character.ai’s Chapter 11 bankruptcy case]() followed the company’s assessment that developing and expanding its service had become too costly. Character.ai also cited potential legal liabilities and regulatory engagement as pressures on its ability to generate enough cash to continue in its existing form. Disney acquired some of Character.ai’s assets, and the platform’s remaining staff is transitioning to the company. The broader field also faces legal scrutiny. Multiple lawsuits against makers of general-purpose AI apps allege that chatbot interactions contributed to users’ suicides. ## Links in this article - [Character.ai’s Chapter 11 bankruptcy case](https://www.tokenpost.com/news/business/31285)