Canada’s StackAdapt Raises $235M to Enhance Its AI-Driven Programmatic Platform
In the midst of ongoing tariff tensions between the U.S. and Canada, a Toronto-based technology company has announced a significant funding round led by a local venture capital firm. StackAdapt, a startup specializing in programmatic advertising, has successfully secured $235 million in equity financing, with Teachers’ Venture Growth (TVG)—the investment arm of the Ontario Teachers’ Pension Plan—at the forefront of this funding initiative.
Participating in this round are Intrepid Growth Partners, a firm based in both Toronto and London, along with four undisclosed investors.
This funding round is remarkable not only for its size but also for the broader implications it carries.
While the scale of this funding marks one of the larger rounds for Canadian startups, it doesn’t surpass the largest seen last year. The fintech company Clio raised $900 million, and Cohere and Tenstorrent garnered $500 million and $700 million, respectively, in the same time frame.
Investment patterns among Canadian startups mirror those emerging in other markets. In 2024, there was a decline in the total number of deals compared to the prior year, with a significant portion of funding flowing into artificial intelligence projects.
StackAdapt’s focus on leveraging “the power of AI” places it well within this trend. Established in 2014, the company saw initial organic growth before attracting a $300 million investment from Summit Partners in 2022. According to PitchBook, part of this investment may have represented a secondary stake and is believed to be a minority investment, placing the company’s valuation at over $600 million.
The firm has opted not to disclose its valuation for this most recent funding round.
The magnitude of this round not only reflects StackAdapt’s present standing but also highlights its capability to garner local support for its forthcoming growth path.
Programmatic advertising has risen as a crucial element of the digital advertising ecosystem, now constituting over 90% of the market. This evolution has been fueled by its ability to furnish marketers with actionable metrics for performance and audience engagement, allowing publishers to automate the ad placement process and expand their inventory.
StackAdapt caters to a diverse array of clients, including those in political campaigns, retail, B2B, travel, healthcare, and financial services. Its services encompass native ads (sponsored content), display advertising, video content, connected TV, audio, gaming, and more.
The rise of AI and other automation technologies has reshaped the programmatic advertising sphere, potentially heightening concerns over ad fraud. This industry must also navigate issues related to brand safety and data protection, especially given the substantial amounts of data utilized in ad targeting.
These challenges concurrently present opportunities for firms like StackAdapt.
“In light of the downturn experienced in 2022–2023, businesses are reorienting their focus on growth and are increasing their investments,” noted Vitaly Pecherskiy, CEO and co-founder alongside Yang Han and Ildar Shar, in comments to TechCrunch. “However, pursuing growth at any cost is no longer the goal. Companies are seeking solutions that advance their operations while prioritizing cost-effectiveness through automation and AI. Consequently, we are witnessing robust demand for our offerings.”
StackAdapt has developed its AI by analyzing ad traffic patterns over a decade, helping to mitigate issues related to ad fraud and bot traffic.
“We are thrilled to support StackAdapt, a prominent Canadian technology firm, on their path to becoming a global leader in AI-driven, end-to-end advertising,” remarked Rick Prostko, senior managing director of TVG, in a press release. “The company has consistently demonstrated growth and profitability while driving innovation in advertising and marketing technology. We are impressed by their remarkable team, visionary leadership, and unwavering commitment to delivering customer value.”