A well-known folklore theorem classifies 2-dimensional topological quantum field theories (TQFTs) in terms of Frobenius algebras, providing a unifying link between topology, algebra, and physics. In this talk, we explore what happens when the usual cobordism category is replaced by a category of nested cobordisms, in which 2-dimensional surfaces are equipped with embedded 1-dimensional submanifolds. We study symmetric monoidal functors out of this category and the resulting algebraic structures they encode. This talk is based on joint work with R. Hoekzema, L. Murray, N. Pacheco-Tallaj, C. Rovi, and S. Sridhar.