Truelink Capital announced that it has completed a significant investment in Channel Factory, a leading adtech company specializing in brand suitability, contextual targeting, and media optimization solutions for digital advertising. Financial terms were not disclosed.
Founded in 2014 by Tony Chen, Channel Factory is a trusted partner to the world’s leading brands, agencies, and media buyers, delivering contextually targeted advertising solutions. Leveraging proprietary AI technology, Channel Factory helps advertisers maximize the efficiency of their digital media campaigns across YouTube, Meta, other walled gardens, and CTV. It ensures ads appear in brand-suitable, high-performing, and contextually relevant content.
“We are thrilled to partner with Channel Factory’s founder-based leadership team and will work together to invest in the company’s expansion into new geographies and additional digital media platforms. Their deeply entrenched relationships with the global agency holding companies and brands, built on a strong foundation of their leading AI technology, have driven exponential growth over the past few years. We see exceptional opportunities to support the business and its leadership as it further develops its core technology to support other social media platforms, ultimately positioning itself to be a one-stop provider for contextual targeting, brand suitability and media optimization. Additionally, we are eager to explore opportunities to continue growing Channel Factory through M&A and organic opportunities in international markets by leveraging the strong relationships that they have cultivated in recent years,” said Luke Myers, Co-Founder and Managing Partner of Truelink Capital.
“We’re excited to partner with Truelink Capital to accelerate our next phase of growth and deliver even more innovation and value creation to our clients,” said Tony Chen, Founder and CEO of Channel Factory. “This partnership marks a new chapter. One that allows us to scale our operations faster, expand into new markets, and multiply our investment in our AI-driven technology. With Truelink’s support and strategic insight, we remain focused on our mission and will continue to run the business with the same leadership, vision, and commitment to our clients that have brought us here.”
With a strong focus on brand safety, suitability, and responsible media placements, Channel Factory enables advertisers to align campaigns with content that reflects their values and resonates with target audiences. Using machine learning to analyze billions of videos, its platform ensures ads appear in optimal environments driving engagement and maximize ROI. Along with this leading AI-based technology, the company has supported its growth by nurturing strong relationships with the biggest and most well-known brands and agencies in this space.
This transaction marks the eighth investment for Truelink Capital, a middle-market private equity firm focused on creating long-term value by partnering with industry-leading companies. The firm has a successful track record of operationally focused investments in the Industrials and Tech-enabled Services sectors.
BMO Capital Markets served as buy-side financial advisor, while O’Melveny served as the legal advisor to Truelink Capital for this transaction.
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