VFR.ai Secures $10M in Funding as the Start-up Takes Aim at The CTV Advertising Industry

The VFR.ai Team
The VFR.ai Team

The CTV (connected TV) industry is about to go through a big shake-up. For a long time now, the vast majority of CTV services, such as Netflix, Hulu, and Amazon Prime Video, have primarily offered ad-free content in exchange for a pricey monthly subscription. However, this is about to change.

As of November this year, Netflix will launch a cheaper ad-supported subscription tier, which will allow viewers to watch TV shows and movies with limited commercials. This move comes as no surprise since many of the streaming giants have lost millions of subscribers over the past 12 months and must take action to recoup these losses. 

Whether it be competition, recession, or inflation, it seems as though people are cutting back on their spending, and streaming services are no exception. Be that as it may, these companies aren’t just going to sit there and watch their profits go down the drain, which is why they are switching to “Plan B” – ads.

Introducing VFR.ai

VFR.ai is a Tel Aviv-based start-up that has developed innovative CTV tech to deliver native advertising experiences across CTV platforms in a way that no other competitor in the industry has yet been able to achieve. 

To put it simply, VFR.ai’s technology allows for the delivery of non-intrusive ads that provide a better user experience and result in higher retention rates. Additionally, the embedded presentation of the ads reduces drop rates, which in turn increases revenue for the advertiser. 

Armed with $10M capital, this startup is now looking to expand its reach and consolidate its position as an innovator of CTV tech.

CTV marketing: A growing industry

According to TVision’s “State of CTV Advertising” Report, the average CTV ad now commands 34.5% attention, up from 31% in 2021, and viewability also increased from 60% to 64% in the same time period. Furthermore, a Statista study found that 41% of respondents expressed they would prefer free ad-supported streaming content, rather than having to pay to get ads removed.

And while this is not strictly the business model that CTV companies such as Netflix and Disney+ will be applying, it goes to show that consumers are willing to accept ads if it means there is an ad-saving element involved. 

Tal Melenboim, Founder & Chairman at VFR.ai, says, “At VFR, we see the CTV market today as where the mobile market was a few years ago, and we are trying to establish ourselves as the CTV tech market leaders.”

The right place at the right time

With the CTV space about to embark on something of a transformation, VFR.ai couldn’t have arrived at a better time. Thanks to its new native ad solution, the start-up is perfectly placed to help advertisers take advantage of this new trend by reaching consumers in a way that is non-intrusive and, most importantly, effective. 

It will be interesting to see how VFR.ai develops over the coming months and years as the CTV industry continues to grow. For now, though, it seems safe to say that the startup is off to a very promising start.


The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.