Canada’s StackAdapt raises $235M in funding to expand its programmatic advertising platform

StackAdapt, a Canadian startup specializing in native advertising, has landed $235 million in equity funding. The round was led by Teachers’ Venture Growth (TVG), the late-stage venture arm of Ontario Teachers’ Pension Plan (OTTP), with participation from Intrepid Growth Partners and four other investors.

This latest investment follows a $300 million backing from Summit Partners in 2022, pushing StackAdapt’s total funding past $500 million. The company did not disclose its valuation for this round.

“This latest round follows the $300M USD investment made by Summit Partners in 2022 and brings StackAdapt’s total investment to over $500M USD,” OTTP said on its website Tuesday.

The new capital will help StackAdapt grow its self-serve demand-side advertising platform and expand its team. The size of this funding round highlights not just the company’s current scale, but also its strategy to secure local investment for its next phase of growth.

One of Canada’s Largest Startup Funding Rounds

While not the biggest round in Canadian startup history, $235 million is still a significant raise. Other major funding rounds in the country include Clio’s $900 million, Cohere’s $500 million, and Tenstorrent’s $700 million—each closing last year.

Startup funding trends in Canada mirror global shifts, with artificial intelligence companies capturing a large share of investments. The overall number of deals in 2024 declined compared to the previous year.

Building a Next-Generation Advertising Platform

Founded in 2014 by Vitaly Pecherskiy, Yang Han, and Ildar Shar, StackAdapt set out to rethink programmatic advertising. The company operates on three principles: solving customer pain points with practical solutions, using AI and automation to create advanced software, and offering a seamless, self-serve experience with speed and accessibility.

Headquartered in Toronto, StackAdapt has over 1,300 employees across 19 markets. Its platform helps Fortune 500 brands and agencies connect with new audiences through branded content.

CEO’s Perspective on the Industry Shift

“The challenges marketing teams face are vast and evolving. Much of the pressure to drive growth rests on their shoulders as they work to reinvent operations and find new ways to reach customers effectively, profitably, and predictably,” said Vitaly Pecherskiy, Co-founder and CEO at StackAdapt. “To help them stay ahead, we are committed to building the most advanced, intelligent, and automated platform to make their success inevitable. We are excited to partner with TVG and the other great investors in this round to drive growth within StackAdapt, continuing on our mission to reshape how marketers use technology to create value within their companies.”

Rick Prostko, Senior Managing Director at TVG, echoed this sentiment: “We are proud to support StackAdapt, a leading Canadian technology company, on its trajectory to becoming the global leader in AI-driven, end-to-end advertising. The company has shown consistent growth and profitability while shaping the future of marketing technology. We have been impressed by their exceptional team, strong leadership, and focus on delivering customer value.”

A Quietly Growing Giant in Programmatic Advertising

StackAdapt initially grew without outside capital until 2022, when Summit Partners invested $300 million. PitchBook data suggests part of that investment was secondary, with the deal structured as a minority stake. Estimates place the company’s valuation above $600 million at that time.

Programmatic advertising has become the backbone of digital marketing, accounting for more than 90% of online ad placements. The appeal lies in its ability to provide marketers with measurable performance insights and give publishers a more automated way to maximize ad revenue.

StackAdapt serves a diverse customer base across industries, including political campaigns, retail, B2B, travel, healthcare, and financial services. Its ad inventory spans native advertising, display, video, connected TV, audio, and even in-game advertising.

With fresh capital in hand, StackAdapt is gearing up for its next stage of growth, aiming to solidify its presence in programmatic advertising while exploring new frontiers in marketing technology.