AI Companion Tolan Raised $30M and Is Adding a Free Tier. It Isn't Therapy.

A friend in your phone, with a to-do list

Tolan gives you a cartoonish character you name and customize. You talk to it, often by voice, and it remembers what you’ve said.

Users told Upstarts Media they use it for everything from daily pep talks to meal plans to managing care for an aging parent.

What's happening

Upstarts Media first reported the round on October 19. USV partner Michael Mignano wrote that the firm is leading the round, and TechCrunch also covered it. The company says the new money doubles what it has raised in total.

Tolan didn’t share its new valuation. Its previous one was $120 million, according to PitchBook. TechCrunch says PitchBook now estimates it at more than $268 million, with “medium confidence.”

What Tolan told Upstarts about its users and business:

The company was founded in 2023 as Portola in San Francisco by CEO Quinten Farmer, CTO Evan Goldschmidt and president Ajay Mehta. Farmer previously sold the startup Even to Walmart. Tolan has a brand page on WellWham.

A friendly voice in your phone is still software.The WellWham perspective

What Tolan says about safety

Farmer told Upstarts the team built features that flag users in a mental health crisis or showing suicidal ideation. Tolan is also designed to ask about the real people in your life and nudge healthy habits, like stretching or calling a relative.

In an August survey of nearly 5,000 active users, Tolan says 91% said they had at least one person to count on, and more than half said their real-life relationships had improved. That’s the company’s own survey, not an independent study.

Our read: big audience, big responsibility

This is our analysis. By Tolan’s own count, its core users are women juggling kids, aging parents and work. A free tier could put an AI companion in many more of their pockets.

That’s exactly why the guardrails matter. Funding and fast growth show investors believe in the business. They don’t show the app is good for your mental health. No clinical trial has tested that.

The risks in this category are real. Families have sued chatbot makers alleging AI conversations contributed to suicides. Google and Character.AI agreed in January to settle a lawsuit brought by a Florida mother whose 14-year-old son died by suicide, AP reported, and the settlement was finalized this month, WKMG reported. OpenAI was sued in 2025 by the parents of a 16-year-old who died by suicide, Reuters reported, and that case is ongoing. None of these lawsuits involve Tolan.

The reality check

Tolan isn’t therapy, and it isn’t a substitute for a doctor, a counselor or the people in your life. If you or someone you know is struggling, call or text 988, the Suicide and Crisis Lifeline in the U.S.

If you try it, notice how you feel after. Calmer and more connected to real people is a good sign. Leaning on it in place of them is worth a second look.

The close

Tolan wants to be the friend in your phone.

The best ones still remind you to call your mom.

Sources