Canada’s StackAdapt Raises $235M for Its AI-Driven Programmatic Platform
As the U.S. and Canada engage in tariff disputes, a Toronto-based tech firm announces a significant funding round led by a local venture capital firm. StackAdapt, a startup specializing in programmatic advertising, has successfully raised $235 million in equity financing, with Teachers’ Venture Growth (TVG) — the investment branch of the Ontario Teachers’ Pension Plan — at the helm of this growth round.
Joining this effort is Intrepid Growth Partners, a firm operating between Toronto and London, alongside four unnamed investors.
This funding round is remarkable not only for its magnitude but also for its implications.
In terms of magnitude, this represents one of the more substantial funding rounds for Canadian startups; yet it falls short of the largest. Last year alone, Fintech company Clio secured $900 million, while Cohere and Tenstorrent raised $500 million and $700 million, respectively.
Investment patterns for Canadian startups align with trends seen in other markets. In 2024, the total number of deals declined compared to the previous year, with a significant portion of funds flowing into artificial intelligence ventures.
StackAdapt, which claims to “harness the power of AI,” fits neatly within this trend. Founded in 2014, the company initially grew through organic means until it attracted a $300 million investment from Summit Partners in 2022. According to PitchBook, a portion of this investment might have constituted a secondary stake, and it is believed to be a minority investment, giving the company a valuation exceeding $600 million.
The company has opted not to disclose its valuation for this latest funding round.
This round’s size reflects not only StackAdapt’s current status but also highlights how it is securing local support for its next growth phase.
Programmatic advertising has become a foundational element in the digital advertising landscape, accounting for over 90% of the market. This transformation results from its ability to provide marketers with effective metrics for ad performance and audience targeting while enabling publishers to automate ad placements and increase inventory.
StackAdapt serves clients across various industries, including political campaigns, retail, B2B, travel, healthcare, and financial services. Its offerings encompass native ads (sponsored content), display ads, video content, connected TV, audio, gaming, and more.
The rise of AI and other automation technologies has altered the programmatic advertising environment, potentially heightening the risk of ad fraud. This sector also grapples with brand safety and data protection challenges, given the vast amounts of data utilized in ad targeting.
These challenges simultaneously represent opportunities for companies like StackAdapt.
“In the wake of the 2022–2023 downturn, businesses are refocusing on growth and increasing their investments,” said Vitaly Pecherskiy, CEO and co-founder alongside Yang Han and Ildar Shar, in remarks to TechCrunch. “However, chasing growth at any cost is no longer the focus. Companies seek solutions that propel their operations forward while emphasizing cost-effectiveness through automation and AI. Consequently, we are witnessing strong demand for our product.”
StackAdapt has developed its AI leveraging “a decade of experience analyzing ad traffic patterns and their evolution,” which aids in combating ad fraud and bot traffic.
“We are pleased to support StackAdapt, a premier Canadian technology firm, on its path to becoming the global leader in AI-driven, end-to-end advertising,” said Rick Prostko, senior managing director of TVG, in a statement. “The company has consistently demonstrated growth and profitability while forging the future of advertising and marketing technology. We are impressed by their remarkable team, visionary leadership, and unwavering commitment to delivering value to customers.”