AI Companion App Tolan Secures $20M After Rapid User Growth

AI companion startup Portola has raised $20 million in Series A funding as demand continues to grow for its virtual companion app, Tolan, which has quickly attracted millions of users since its public launch earlier this year.

Released on iOS in February, Tolan introduces users to colorful animated alien companions from the fictional Planet Portola. After completing a personality assessment, each user is matched with a personalized AI companion designed to provide conversations, emotional support, and everyday guidance on topics ranging from meal planning to exam preparation.

According to the company, every Tolan companion gradually adapts through ongoing conversations, creating a more personalized experience over time.

Millions of Downloads in Just Months

Portola says Tolan has experienced rapid adoption since launch, reaching more than 3 million downloads, over 100,000 paying subscribers, and generating more than $1 million in monthly recurring revenue.

The startup is led by Quinten Farmer, a Seattle-based entrepreneur best known as the co-founder and former CEO of fintech company Even, which was acquired by Walmart for $300 million in 2022.

Farmer co-founded Portola alongside CTO Evan Goldschmidt and President Ajay Mehta, bringing together a team focused on building AI products that encourage meaningful human development rather than simply increasing screen time.

Building AI That Supports Real Life

While AI companionship apps continue to gain popularity, Farmer says Portola measures success by how users feel away from their phones.

Rather than focusing only on engagement, the company tracks whether regular use improves confidence, independence, and real-world relationships.

Farmer pointed to an internal study involving 602 Tolan users, which found that people using the app several times a week reported noticeable improvements in emotional well-being, including stronger feelings of self-confidence and personal agency.

The findings come as AI companions become an increasingly debated topic. Earlier this year, Axios highlighted the growing divide between people who see AI as valuable emotional support and critics who believe chatbots cannot replace genuine human relationships.

Backed by Major Investors

The newly announced Series A funding round was led by Khosla Ventures, with participation from managing director Keith Rabois.

Before this investment, Portola had already secured a $10 million seed round led by Lachy Groom, a former Stripe executive and co-founder of AI robotics startup Physical Intelligence.

The company’s investor list also includes several well-known technology leaders, including former GitHub CEO Nat Friedman, former Apple AI executive Daniel Gross, Replit CEO Amjad Masad, Instagram co-founder Mike Krieger, and AI entrepreneur David Luan, who previously worked at OpenAI and Amazon.

Subscription Model Expanding Soon

Tolan currently operates on a subscription model. Users can subscribe for $4.99 per week, $10 per month, or approximately $70 annually.

Farmer revealed that Portola plans to introduce a free version of the app later this month, making the AI companion available to a much larger audience.

He explained that the company wanted to secure additional funding before the launch because of the product’s viral growth and the significant computing costs required to run advanced AI models.

Growing Team and Bigger Ambitions

Portola currently employs 12 people and is actively recruiting engineers as it expands its platform.

With fresh funding, strong user growth, and increasing investor confidence, the company aims to strengthen its position in the emerging AI companionship market. As more consumers look for digital tools that provide conversation, emotional encouragement, and personalized support, Tolan is positioning itself as an AI companion designed not only to chat, but also to help users build confidence and improve their everyday lives.

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