ChatFeatured, a Toronto-based AI search optimization platform helping companies improve their visibility to consumer chatbots, has raised an oversubscribed $2M pre-seed round led by Storytime Capital, with participation from Garage Capital and BY Venture Partners.
The company will use the funding for product development, go-to-market efforts, and team growth.
Addressing The Market Opportunity
AI chatbots are fundamentally changing how consumers find information and make purchasing decisions. A study by SEO agency Eight Oh Two found that 37 percent of consumers used AI tools to begin a web search rather than a traditional search engine at the start of 2025. Research from the Pew Research Center has found that users shown AI summaries are less likely to click on links, reducing the traffic that has historically flowed to company websites from search engines.
For smaller brands, this shift threatens to entrench existing disadvantages. Large companies with established web presences and high volumes of online content are better positioned to be referenced by AI models than smaller businesses with limited digital footprints. ChatFeatured was built to close that gap.
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How The Technology Works
ChatFeatured’s platform identifies how a company is currently being mentioned, or overlooked, by major AI chatbots including ChatGPT, Claude, and others. It then generates a strategy to increase that visibility, producing content and implementing website changes that make a brand’s web presence as easy as possible for AI models to read and reference.
The platform accounts for differences between AI models in terms of consumer reach and sector relevance. Claude is described by the company as particularly dominant among SaaS businesses, and ChatFeatured offers additional tracking for clients who prioritize visibility within specific models.
Growth And Market Traction
ChatFeatured was founded by CEO Farris Nasr and CTO Nithiiyan Skhanthan. The pre-seed round was oversubscribed, reflecting early investor interest in a category that is gaining traction as AI chatbot usage continues to grow. The company currently operates with a team of five.
Expansion Plans
The $2M raise will fund continued product development, commercial go-to-market activity, and team expansion as ChatFeatured works to establish itself in the growing AI search optimization category alongside other platforms targeting the same shift in consumer behavior.
Looking Ahead
Farris Nasr, CEO of ChatFeatured, described the competitive dynamic the platform is designed to address: “It used to be a David versus Goliath thing for these small businesses, and it’s almost like David and Goliath now. We’re allowing the smaller businesses to compete more effectively against much bigger brands with the technology.”
About ChatFeatured
ChatFeatured is a Toronto-based AI search optimization platform founded by Farris Nasr and Nithiiyan Skhanthan. The company helps brands understand and improve how they are referenced by major AI chatbots including ChatGPT, Claude, and others, generating content strategies and website improvements that increase visibility in AI-generated responses. ChatFeatured serves clients across sectors with a focus on helping smaller businesses compete more effectively in an AI-driven search environment.
