Ottawa-based AI video-surveillance company Solink raises $100-million in growth capital

Solink Corp., an Ottawa company that sells artificial intelligence software to monitor business operations in more than 35,000 restaurants, stores and other locations, has raised US$100-million in growth capital.

Toronto-based private-equity firm Vertu Capital led the financing, backed by Goldman Sachs Asset Management’s GS Growth unit and new investors Golub Growth and Comcast Ventures. About 90 per cent of the amount raised went to Solink; the rest was paid to early investors for their stakes.

“We thought it was important to bring on another Canadian backer,” as the country seeks to assert its economic strength at a time of geopolitical uncertainty, Solink’s chief executive officer Mike Matta said. “As a Canadian founder, I’m very passionate about building a category-defining business that just happens to be in Canada.”

This is the third time a Canadian entity has led a Solink financing: Generation Ventures led a $5-million seed financing in 2017 and OMERS Ventures led a $23-million venture financing in 2020. (Laura Lenz was the partner on both deals, first at Generation, then OMERS.)

Chicago-based Valor Equity Partners led a $16.3-million financing in 2019 and New York-based GS Growth led a US$60-million round in 2023. Business Development Bank of Canada is also an investor.

Ottawa technology billionaire Terry Matthews was an early investor. Last year, he gave up office space occupied by his Wesley Clover International holding company to accommodate Solink’s expansion. The software company now has 350 employees, up fourfold since 2021.

Solink was founded in 2010 by Mr. Matta, who came up with the idea after he spent time tracking customer-traffic patterns for BCE Inc.’s The Source retail chain. Rather than going store to store to collect data, the University of Waterloo electrical engineering graduate set out to develop software that could remotely tap into existing security cameras used by businesses for insurance and security-monitoring purposes. His software would eventually use AI to mine the videos for insights that managers could use to improve operations.

Solink’s software marries security feeds from its cameras to point-of-sale data. It uses AI to rifle through the combined data to pinpoint specific events, such as when employees key in discounts. It uploads relevant snippets to the cloud so operators can access and search them, sending out updates about anomalies and unusual activity.

Solink’s software expanded in scope as customers used its technology for more than just enhancing security and preventing theft and loss. Those applications included ensuring drive-through traffic moves steadily, shelves and display case items are regularly replenished and safety hazards are addressed.

“You’re seeing the Solink platform permeate more through different departments,” said Ms. Lenz, who heads OMERS Ventures. “Marketing, sales and operations use it, as well as loss prevention. That increases contract value, net dollar retention and stickiness and reduces churn.”

Solink “sits at the intersection of the physical and digital world, which is an exciting opportunity to be in,” Vertu partner Eric Kafka said. “We see a huge market opportunity. Solink is well-positioned to take that.”

The company’s first key customer was a Tim Hortons franchisee, leading to adoption by hundreds more stores within the chain. It has been adopted by owners or franchisees of such brands as Gap, Five Guys, Jack in the Box, Pet Valu, Dollar Tree, Chick-fil-A and PGA Tour Superstore, across 65 countries.

Solink uploads more than 750 million hours of data a month – 20 times the amount uploaded to YouTube daily, Mr. Matta said. Solink has been growing its revenues by more than 40 per cent a year and is on track to surpass the US$100-million mark on an annual basis by April, he added.

Mr. Matta said Solink now has an opportunity to expand its deployment of AI agents to automate managers’ directions to staff on improving operations based on data received through its platform.

The financing will largely be used to build out the supporting “intelligence layer” for the agents that Solink offers customers. Mr. Matta expects use of those agents and related intelligence tools to account for more than 40 per cent of Solink revenues within three years, up from less than 10 per cent now.