Canada’s StackAdapt Secures $235M to Advance Its AI-Powered Programmatic Ad Platform

Amid ongoing trade tensions between the U.S. and Canada, a Toronto-based tech company is making waves with a major funding round. StackAdapt, a leader in AI-driven programmatic advertising, has secured $235 million in equity funding, marking a significant milestone for the company. The round was led by Teachers’ Venture Growth (TVG), the investment arm of the Ontario Teachers’ Pension Plan. Also joining the round was Intrepid Growth Partners, a firm with offices in Toronto and London, along with four other unnamed investors.

 

A Notable Funding Round in a Changing Market

 

This latest investment is remarkable not only for its size but also for its timing and focus. While it isn’t the largest funding round for a Canadian startup, it follows a recent trend where AI-driven companies are securing substantial backing. In 2023, Canadian fintech Clio raised $900 million, AI firm Cohere secured $500 million, and semiconductor startup Tenstorrent brought in $700 million. Despite a general slowdown in startup funding, AI-powered businesses continue to attract significant investor interest.

 

Founded in 2014, StackAdapt operated as a bootstrapped company for most of its early years. That changed in 2022 when the company received a $300 million investment from Summit Partners. According to PitchBook data, a portion of that funding came in the form of secondary investment, which placed the company’s valuation at over $600 million at the time.

 

While StackAdapt has not disclosed its current valuation, sources estimate it at approximately $2.5 billion, with annual revenues reaching $500 million. The size of this funding round underscores both StackAdapt’s impressive growth and its strategy to scale operations with strong Canadian financial backing.

 

The Role of AI in Programmatic Advertising

 

Programmatic advertising has become the dominant force in digital marketing, accounting for over 90% of all digital ad spend. By automating the buying and placement of digital ads, programmatic advertising helps brands optimize their campaigns and better measure performance, while enabling publishers to efficiently fill ad space.

StackAdapt has positioned itself as a leader in this space, offering AI-driven solutions tailored to various industries, including:

 

• Political campaigns
• Retail and e-commerce
• B2B marketing
• Travel and hospitality
• Healthcare and pharmaceuticals
• Financial services

The company’s advertising inventory includes native ads (sponsored content), display, video, connected TV, audio, and in-game advertising, giving businesses a wide range of channels to reach their target audiences.

 

Challenges and Opportunities in the Industry

 

The growing role of AI and automation in programmatic advertising has created both opportunities and challenges. While AI can improve targeting, optimization, and campaign efficiency, it has also led to an increase in ad fraud, brand safety concerns, and data privacy risks.

StackAdapt is tackling these challenges head-on. CEO and co-founder Vitaly Pecherskiy highlighted how the company’s AI is built on a decade of analyzing ad traffic patterns, which helps detect and reduce fraudulent traffic while improving ad performance.

“After the 2022–2023 slowdown, businesses are shifting their focus toward growth and cost-efficiency through AI and automation,” said Pecherskiy. “As a result, we’re seeing strong demand for our product.”

 

Backing from TVG and the Future of StackAdapt

 

TVG’s senior managing director, Rick Prostko, praised StackAdapt’s progress and leadership in AI-driven advertising.

“We are proud to support StackAdapt, a leading Canadian technology company, on its journey to becoming a global leader in AI-driven, end-to-end advertising,” said Prostko. “The company has consistently demonstrated growth and profitability, all while building the future of advertising and marketing technology. Their visionary leadership and commitment to customer value have truly set them apart.”

 

What’s Next for StackAdapt?

 

With this latest funding, StackAdapt is well-positioned to expand its AI-driven programmatic advertising platform and strengthen its presence in global markets. As AI continues to shape the future of digital advertising, the company is set to play a pivotal role in helping brands navigate the evolving landscape while maintaining transparency, security, and efficiency.

 

This $235 million investment signals strong confidence in StackAdapt’s technology, business model, and leadership—making it a key player to watch in the growing AI-powered ad tech industry.