Amid ongoing tariff disputes between the U.S. and Canada, a tech firm from Toronto has announced a substantial funding round spearheaded 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 branch of the Ontario Teachers’ Pension Plan—at the helm of this growth initiative.
Joining the investment are Intrepid Growth Partners, a firm operating between Toronto and London, alongside four unnamed investors.
This funding round is remarkable due to both its scale and its strategic focus.
In terms of scale, this represents one of the largest financing rounds for a Canadian startup thus far, though it does not hold the title for the biggest. Notable recent raises include Clio at $900 million, Cohere at $500 million, and Tenstorrent at $700 million, all achieved in the previous year.
The trend in funding for Canadian startups mirrors patterns seen in other markets. The overall deal count in 2024 declined compared to the previous year, with investments in artificial intelligence companies taking a disproportionately large share of the total.
StackAdapt, which positions itself as a company that “leverages AI technology,” is very much a part of this trend. Established in 2014, it had largely grown organically until a notable investment of $300 million from Summit Partners in 2022. According to PitchBook data, a portion of that $300 million was likely a secondary investment. It appears to be a minority investment, elevating the company’s valuation above $600 million.
While the company has chosen not to disclose its valuation in this latest round, sources suggest it is hovering around $2.5 billion with annual revenues of $500 million.
This round of funding and the company’s valuation reflect not only its current standing but also its strategy for financing the next phase of growth with local support.
Programmatic advertising has essentially become foundational to modern digital advertising, making up over 90% of the market. This approach allows marketers to measure the performance of their ads and target audiences more effectively, while it offers publishers a more automated method to increase ad revenue.
StackAdapt caters to a diverse clientele, including sectors like political campaigning, retail, B2B, travel, healthcare, and financial services. The company assists these customers in reaching their target audiences through various ad formats, including native advertising, display, video, connected TV, audio, games, and more.
The emergence of AI and various forms of automation have transformed the programmatic advertising landscape, which may lead to increased instances of ad fraud. Additionally, programmatic advertising faces challenges related to brand safety and data protection, especially given the vast volumes of data required for precise targeting.
These challenges also represent significant opportunities for companies like StackAdapt.
“Following a period of slowdown from 2022 to 2023, businesses are now refocusing on growth and ramping up their investments,” declared Vitaly Pecherskiy, the co-founder and CEO of StackAdapt, in a statement to TechCrunch. “However, unchecked growth is no longer the main goal. Companies want solutions that propel their operations forward while ensuring cost-effectiveness through automation and AI. Consequently, we are witnessing a robust demand for our offerings.”
Pecherskiy noted that StackAdapt has developed its AI capabilities based on “a decade’s worth of insights into ad traffic patterns and their evolution,” which they utilize to combat ad fraud and bot interventions.
“We are delighted to support StackAdapt, a premier Canadian tech firm, as it strives to become the global frontrunner in AI-driven, comprehensive advertising solutions,” remarked Rick Prostko, senior managing director of TVG, in a statement. “The firm has consistently shown growth and profitability while paving the way for the future of advertising and marketing technology. We are truly impressed by their outstanding team, visionary leadership, and unwavering commitment to delivering customer value.”
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