Despite a general slowdown in investor interest in advertising technology due to industry domination by Big Tech and changing consumer content preferences, StackAdapt's recent funding round is notable as the largest for an advertising startup since Madhive's $300 million raise in 2023. Advertising startups raised less than $1 billion in venture capital in the previous year, with a slight increase to $1.3 billion in 2023, according to Crunchbase data.
Key takeaways:
- StackAdapt raised a $235 million growth round led by Teachers’ Venture Growth, with participation from Intrepid Growth Partners and other investors.
- The Toronto-based company uses AI and automation in its multichannel programmatic advertising platform to enhance capabilities and user experience.
- StackAdapt's recent funding is the largest for an advertising startup since Madhive raised $300 million in 2023.
- Advertising startups raised only $1.3 billion in 2023, indicating a slowdown in investor interest in the adtech sector.