Tolan raises $30 million to expand AI companion app

Tolan, an AI companion app that helps users manage daily life and emotions through a cartoonish character, raised $30 million in a Series A round led by Union Square Ventures, Khosla Ventures, and Homebrew. The funding doubles its total capital to date and values the company beyond $120 million. The app claims 250,000 active users and over 70 million conversations in the past year, with annual recurring revenue in the double-digit millions. Approximately 70% of users are women and 40% are parents.