A record number of advertising and marketing technology companies went public last year, according to the 2021 Full Year Market Report from LUMA Partners, a leading media and marketing investment firm. Deal volume among ad tech, marketing tech and digital media companies soared 82% year-over-year.

Why it matters: It wasn’t long ago that investors were pulling back from the ad tech industry, fearing it would crumble as the sector moved away from tracking cookies and toward privacy-focused targeting solutions.

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But optimism surrounding the country’s economic recovery, inflated public market valuations and growth in streaming, gaming and e-commerce has investors much more excited about ad tech today than ever before.

“The 7 year period where the sector was out of favor enabled companies to build scaled sustainable businesses that have largely performed well as public companies,” said Terence Kawaja, the founder and CEO of LUMA Partners. “This backlog explains the high level of IPOs in 2021.”

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