Toronto's ChatFeatured Raises $2M to Optimize AI Chatbot Visibility
AI-generated image · Bay Street Wire
The startup aims to help brands increase their reach as consumers shift from traditional search engines to LLMs.
ChatFeatured, a Toronto startup, has secured an oversubscribed equity pre-seed round worth $2-million USD ($2.8-million CAD), according to BetaKit. The funding round was led by Storytime Capital, with additional participation from BY Venture Partners and Garage Capital.
The startup provides an AI search optimization platform designed to help companies increase their visibility to consumers using chatbots. ChatFeatured's technology identifies how brands are mentioned by major chatbots and generates strategies to improve that presence, including creating LLM-friendly website adjustments and content. According to BetaKit, 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 service allows smaller businesses to compete more effectively against larger brands as AI chatbots become a preferred search tool. This shift in consumer behavior is supported by data cited by BetaKit: a study from SEO agency Eight Oh Two found 37 percent of consumers used AI tools to start web searches at the beginning of 2025. Additionally, the Pew Research Center found users are less likely to click links in Google’s AI overviews, while Calgary-based Koat.ai reported that as of May 2025, bots accounted for more than half of all internet traffic.
ChatFeatured plans to utilize the new capital to expand its five-person team, advance product development, and execute go-to-market strategies.