Born raised $15 million in a Series A round in September 2025, led by Accel with participation from Tencent and Laton Ventures. The valuation for this round was not disclosed.

The company previously secured $5 million in a seed round in June 2024, bringing its total funding to $25 million across the two rounds.

Proceeds from the Series A will be allocated toward expanding Born's AI companion product offerings and entering additional geographic markets, including establishing a New York office to support U.S. market entry.

Born develops AI-powered virtual pet companions that combine Tamagotchi-style gameplay with large language model-driven conversations and social networking features. Its primary product, Pengu, focuses on co-parenting a virtual baby penguin with another person, typically a friend, partner, or family member.

Users access Pengu through an iOS or Android app and invite a co-parent to jointly care for the virtual penguin. The shared responsibility model encourages daily engagement, as progress requires at least one caretaker to interact with the app regularly. This dynamic supports user retention and drives word-of-mouth referrals.

Pengu's personality is generated using OpenAI's language models integrated with Born's proprietary memory layer. The AI pet retains details from past interactions, such as conversation topics, food preferences, and shared jokes, and evolves over time by introducing new behaviors, such as requesting specific mini-games from earlier sessions.

The gameplay loop includes tasks like feeding and bathing the penguin, which earn virtual currency, casual mini-games that unlock rare items, and a synchronous chat feature where both co-parents can text each other and the penguin simultaneously. A home-screen widget provides visibility throughout the day, with notifications tied to the pet's needs.

Users can personalize their penguin with outfits and room decorations, often sharing screenshots on TikTok and Instagram, contributing to organic user acquisition. Born applies additional safety filtering beyond OpenAI's default protections to address the needs of its primary audience, which consists largely of users aged 13-21.

Born operates a freemium mobile app model, allowing users to download and play for free while offering premium features and virtual goods for purchase. The company generates revenue through in-app purchases of coins, cosmetic items, and subscription-based VIP passes that provide access to additional content and features.

The co-parenting mechanic drives viral growth, as each new user must invite another person to fully utilize the product. This shared gameplay dynamic lowers customer acquisition costs and increases engagement through social interaction.

Born's go-to-market strategy focuses on B2C, targeting Gen Z users via organic social media sharing and app store discovery. User-generated content plays a key role, as players frequently share screenshots and videos of their AI pets on external platforms.

The business model supports scalability through a portfolio strategy, with plans to launch multiple AI companion apps built on the same character engine and memory technology. This approach spreads development costs across various user segments and use cases while creating a defensible technology advantage.

Revenue growth within the existing user base is driven by virtual goods purchases and premium subscriptions. Additionally, new companion apps are designed to appeal to different demographics and price points, minimizing the risk of cannibalizing the core Pengu experience.

Character.AI reports 20 million monthly active users and over 69 million downloads, supported by a $2.7 billion licensing agreement with Google. Chai operates a user-generated AI platform with over 10 million users and $40 million in annual recurring revenue, distinguishing itself through permissive content policies and proprietary 4-bit models designed to lower compute costs.

Replika, which targets emotional support and relationship-building use cases, has over 30 million total users but has encountered regulatory challenges, including a €5 million privacy fine in Italy. These platforms prioritize one-on-one role-playing interactions, contrasting with Born's shared social gameplay mechanics.

Meta is piloting 28 celebrity-based AI characters across WhatsApp, Instagram, and Messenger, incorporating long-term memory features and search functionality. Snapchat's My AI integrates mini-games and social features within its broader platform ecosystem.

These companies benefit from extensive distribution networks tied to their existing social platforms but do not replicate the pet-raising gameplay loop that underpins Born's daily engagement and co-parenting viral dynamics.

Large technology firms are embedding AI personality features into existing products rather than developing standalone companion applications. Apple, Google, and Microsoft are integrating conversational AI into their operating systems and productivity tools.

xAI utilizes exclusive data access from Twitter and significant computing resources to power its Grok assistant, while OpenAI's ChatGPT has become a widely adopted AI interaction model. These competitors focus on capturing user attention and engagement time rather than monetizing companion relationships directly.

Born intends to expand beyond Pengu by introducing additional AI companions tailored to specific age groups and use cases. A stealth human-style companion app targeting 16-21-year-olds will integrate TikTok content and generate social media network effects as users share externally.

The company is creating new characters within the Pengu app, such as a study-buddy otter that applies its memory-rich technology to educational contexts. Born's proprietary character engine may be offered as a software development kit for indie game studios or licensed to consumer brands as a white-label API.

Voice and augmented reality interfaces are potential growth areas as devices like Apple Vision Pro and AI wearables gain traction. Born's use of React Native and Vision OS compatibility suggests readiness for spatial computing applications.

Seventy-two percent of U.S. teens currently use AI companions, with downloads increasing 88% year-over-year, indicating strong adoption trends within Born's primary demographic. Co-parenting mechanics appeal to couples and families outside the teen market, creating opportunities for upselling through family plans and giftable virtual goods.

Loneliness among older adults presents an underserved market, particularly as European health systems adopt social prescribing programs. Born could address the 55-plus demographic by developing age-appropriate companions in collaboration with insurers and senior living operators.

The nostalgia for virtual pets resonates with users who grew up with Tamagotchi and similar digital experiences, broadening the addressable market to include millennials with disposable income and emotional connections to the format.

Asia-Pacific accounts for 32% of global AI companion spending, with high virtual pet adoption in markets such as India, Indonesia, and Brazil. Local language packs and low-bandwidth modes could address barriers to adoption in these emerging markets, where data costs remain a challenge.

Born's planned New York office aims to enhance U.S. market penetration by fostering relationships with content creators, IP licensors, and potential Series B investors. The U.S. market offers higher revenue per user and a more developed app store monetization ecosystem compared to Europe.

International growth could benefit from varying cultural attitudes toward AI companions, particularly in Asian markets where virtual relationships face less social stigma and digital pet ownership has stronger cultural significance.

Regulatory scrutiny: Born's user base, primarily aged 13-21, subjects the company to heightened regulatory risks related to AI safety, data privacy, and child protection. European privacy regulations have already led to multi-million euro fines for similar AI companion apps. Comparable enforcement actions could disrupt Born's business model or necessitate costly compliance measures, negatively affecting unit economics.

Platform dependence: Born's reliance on Apple and Google's app stores for distribution and payment processing creates exposure to potential policy changes, algorithm adjustments, or increased platform fees. Modifications to app store policies governing AI-generated content or social features could directly hinder Born's user acquisition and monetization capabilities.

Compute cost inflation: The AI companions offered by Born rely on large language model API calls, which incur significant costs that scale with user engagement. Rising compute expenses from providers like OpenAI or the development of proprietary models could substantially reduce margins. Competitive pressure from free alternatives may limit Born's ability to offset these costs through price increases.