While the U.S. and Canada continue their trade disputes, a Toronto tech firm is making headlines with a massive funding announcement. StackAdapt, a programmatic advertising startup, has just secured $235 million in equity funding. The round was led by Teachers’ Venture Growth (TVG), the investment arm of the Ontario Teachers’ Pension Plan, with participation from Intrepid Growth Partners and four undisclosed investors.

This funding marks a significant milestone for StackAdapt, which has been growing steadily since its launch in 2014. The company, which uses AI to power its advertising platform, previously raised $300 million in 2022 from Summit Partners, valuing it at over $600 million.

StackAdapt’s rise reflects broader trends in the tech world, where AI-focused companies are attracting substantial investments. In 2023, Canadian startups like Clio, Cohere, and Tenstorrent also landed major funding rounds, highlighting the growing interest in AI-driven innovations.

Programmatic advertising, the backbone of digital marketing, relies on automation to target ads more effectively. StackAdapt’s platform caters to a wide range of industries, including retail, healthcare, and political campaigns, offering ad formats like native content, video, and connected TV.

However, the rise of AI in advertising isn’t without challenges. Issues like ad fraud, data privacy, and brand safety remain significant concerns. StackAdapt aims to tackle these problems with its advanced AI, which analyzes ad traffic patterns to detect fraud and improve targeting.

“Companies are now prioritizing cost-effective growth through automation and AI,” said Vitaly Pecherskiy, StackAdapt’s co-founder and CEO. He emphasized the company’s decade-long experience in refining its AI to meet these demands.

With this new funding, StackAdapt is set to expand its global footprint and cement its position as a leader in AI-driven advertising. “We’re proud to support StackAdapt’s journey,” said Rick Prostko of TVG, praising the company’s innovative approach and consistent growth.

As StackAdapt continues to innovate, it’s clear that AI will play an even bigger role in shaping the future of digital advertising.