Town raises $108M Series B at a $1B valuation, co-led by Forerunner and Menlo

TLDR

• Town raised a $108M Series B at a $1B valuation, co-led by Forerunner Ventures and Menlo Ventures.¹²
• Town says it reached seven-figure annual recurring revenue within weeks of its June 2026 launch, without giving absolute figures.¹
• Each employee gets an AI assistant, called a Townie, and the assistants can hand work off to one another.¹

Town, a San Francisco startup building AI assistants for work, announced on 19 October 2026 a $108 million Series B at a $1 billion valuation.¹ Forerunner Ventures and Menlo Ventures co-led. Existing investors a16z and First Round Capital also participated, along with Better Tomorrow Ventures, Precedent.vc, Scribble Ventures, Serena Ventures, Sparked Ventures and a list of angels.¹ TechCrunch lists a16z, Serena Ventures and First Round Capital as simply having participated.² Fortune's report of the June Series A names a16z as lead, with Forerunner, First Round, Alt Capital and Conviction participating, and does not mention Menlo.³ That makes Forerunner a returning investor and Menlo a new co-lead.

Town was founded in late 2024 by Jean-Denis Greze, a former Plaid CTO, and Tony Vincent, a former director of applied AI at Google.³ Each person on a team gets an assistant called a Townie that connects to their email, documents, calendar and core work systems and learns their projects and voice.¹ The new feature is that Townies can ask each other questions and hand off work, and can also work with customers, partners and candidates outside the company over email and text.¹ Teams can also set up shared workflows: the release gives the example of a business-operations team updating competitor battle cards once so that every sales rep's Townie then prepares calls with the new analysis.¹ Town says it is SOC 2 Type 2 compliant and that, by default, nothing a customer connects trains a model.¹

On traction, Town says it reached seven-figure annual recurring revenue within weeks of its June launch, and that since July paying customers have grown 4x and paying teams 9x. It gives no absolute figures.¹ TechCrunch describes the revenue as "millions of dollars".² Fortune's June piece offers the earlier benchmark: the company was then approaching 10,000 users, with 99% two-month retention among users who had built at least one custom automation.³ Menlo's own post discloses that it is also a customer, having put the whole firm on Town in June.⁴

Both leads have backed other AI companies recently. Menlo led Lovable's $400 million Series C at a $13.3 billion valuation in August 2026, having co-led its $330 million Series B the previous December.⁵ It also led the $80 million Series A of Gimlet Labs, which sells software for running AI workloads across different chips.⁶ Forerunner's Kirsten Green led the $30 million Series A of Natural, which is building payments infrastructure for AI agents.⁷

Why it matters: a unicorn valuation four months after launch shows investors are paying up for assistants aimed at teams rather than individuals, though the traction figures are the company's own and Town has yet to publish customer numbers.