Toronto's ChatFeatured Raises $2 Million to Tackle AI Search Visibility
AI-generated image · Bay Street Wire
The startup aims to help brands optimize their web presence as consumers increasingly turn to chatbots over traditional search engines.
Toronto-based ChatFeatured has secured an oversubscribed equity pre-seed round totaling $2-million USD ($2.8-million CAD), BetaKit reports. The funding round was led by Storytime Capital, with additional participation from BY Venture Partners and Garage Capital.
The startup is developing an AI search optimization platform designed to track how companies are mentioned by major chatbots and create strategies to increase that visibility. This includes generating content and implementing website fixes to ensure a brand's digital footprint is easily accessible for LLMs. According to BetaKit, ChatFeatured CTO Nithiiyan Skhanthan noted that certain models have higher reach depending on the sector; for instance, the company charges an additional fee to track visibility in Anthropic's Claude due to its popularity with SaaS businesses.
CEO Farris Nasr told BetaKit that the technology allows smaller businesses to compete more effectively against larger brands, effectively leveling the playing field.
The shift comes as consumer behavior evolves. BetaKit cites a study from SEO agency Eight Oh Two showing that 37 percent of consumers started web searches with AI tools rather than traditional engines at the start of 2025. Additionally, Pew Research Center found that users are less likely to click links in Google's AI overviews. Data from Calgary-based Koat.ai further indicates that as of May 2025, bots accounted for more than half of all internet traffic.
ChatFeatured intends to use the new capital to expand its five-person team, drive go-to-market efforts, and continue product development.