Tolan has secured $30 million for its AI companion app as it plans a free tier to widen access, with a lead investor projecting more than 250,000 users in October.
Union Square Ventures is leading the financing with Khosla Ventures, an existing investor. The venture firm put the number of conversations with Tolan’s characters above 70 million for the past year.
Upstarts Media reported that Homebrew joined the round and that the deal doubled Tolan’s total funding. The outlet estimated that about 250,000 people use the app each month. Union Square Ventures’ figure of more than 250,000 users in October is a projection.
The app gives users a customizable character for conversations about personal concerns and help organizing daily tasks. Tolan told Upstarts Media that its annual recurring revenue was in the double-digit millions, more than twice its level a year earlier. The company also told the outlet that women account for about 70% of users and parents for 40%.
Tolan’s FAQ says a subscription is required for full access to the app’s features. Upstarts Media reported that earlier changes to prices and usage limits drew user complaints, while the computing costs of running the AI service remain a pressure. Tolan plans to introduce its first free tier, the outlet reported.
