A Growing Paw-ty


Apr 10, 2023


Cindy Grazer


Apr 10, 2023


Cindy Grazer


Would you consider your pet to be a family member? More than 70% of Americans say yes! But what does that mean for the pet industry - healthcare, food, day care, training etc.? According to Bloomberg, the animal companion industry is set to reach half a trillion dollars by 2030 globally, with the US set to account for ~$200b of that market.

During the pandemic, the rise of the pet adoption and care industry came hand in hand with flexibility to work from home and proliferation of eCommerce services like Chewy. Pet (and human) snack manufacturers like Mars (who makes Snickers bars and M&Ms) and Nestle invested heavily into pet health, including acquiring animal hospitals. Lots have been done on the drug discovery side for pet medication too, with big pharma names developing new drugs to extend pets’ expected life span.

While all this investment can certainly help owners take better care of their pets, it can also incur hefty expenses. It is not uncommon anymore for pet medical bills to be upwards of $10,000, especially for severe health issues like cancer. Yet the insurance market for pets is still vastly underpenetrated: only 3.9% of dogs and just under 1% of cats in the US had insurance, according to Bloomberg. Underwriting new data on pet health, providing increased coverage and awareness can be a large and exciting area of innovation.

The total value of US premiums on pet insurance is already >$2.5b annually, and there is still much room for growth. That size of opportunity is nothing to bark at!

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Portfolio News

Vestwell CEO Aaron Schumm speaks at NAPA 401(k) Summit - "The Big(ger) Opportunities in the Small(er) Market: What Providers Wish Advisors Knew” was one of several sessions focused on the issue, featuring Mike Griffin of UBS, Equitable’s Fred Makonnen, Ascensus CEO David Musto, and Vestwell CEO Aaron Schumm. Read more

MoneyLion featured among Investopedia's recommendations for best credit builder loans - For those individuals that have no savings and a bad credit score, it is clear how precarious a situation can be. Investopedia has released a list of their highest ranked loans for credit builders, naming MoneyLion as the "Best for Small Loan Amounts." Read more

A Growing Paw-ty

Pandemic pet adoptions propel rise of a $500b global market - The pet economy is expected to grow more than 50% in coming years, powered by spending on sophisticated drugs and treatments — and more than a little pampering. Read more

Pet insurance market size is to reach $31b by 2030 - Beyond Market Insights reported that the global pet insurance market was worth $9.3b in 2022 and is estimated to grow to $31.13b by 2030, with a CAGR of 16.3 % over the forecast period from 2023 to 2030. The expansion is primarily due to efforts made by current providers to inform customers about rising veterinarian costs and the many benefits of pet medical insurance plans. Read more

Industry News

A barcode unlocks Indonesia’s billion-dollar informal economy - The quick-response code, or QR, lets customers make payments by scanning it with their mobile phones. It’s fast, easy and cheap for merchants, and cash is making less of an appearance, with some shops not accepting it at all. The uptake is paving the way for Indonesia to capture the billions of dollars of informal economic activity overlooked in taxation and even statistics due to small businesses’ reliance on cash. Read more

Elon Musk revives old banking dream in pursuing $250b Twitter valuation - Key to his effort, Musk has said, is putting the social-media company at the center of users’ financial lives, where Twitter users can effortlessly send money to each other, earn interest on deposits and much more through an app. It is a remake that harks back to the early days of his professional career and his first major corporate setback at a startup called X.com, now known as PayPal. Read more

Acorns acquires UK’s GoHenry, a fintech startup focused on 6-18 year olds - The acquisition is notable for a couple of reasons. For one, if the companies have managed to keep their valuations level, it would be one of the bigger M&A deals between two fintech startups coming at a time when startups have found it very challenging to raise further funding. Second, it will add a number of new backers to Acorns’ cap table. Lastly, this gives Acorns an opening to grow internationally, starting with GoHenry’s existing footprint across the U.K., France, Italy and Spain. Read more

Frank founder criminally charged with fraud over $175m JPMorgan deal - Javice, 31, is accused of “falsely and dramatically” inflating the number of customers Frank actually had in a scheme to “fraudulently induce” the bank to acquire the startup in 2021, federal prosecutors in Manhattan said. She stood to gain more than $45m from the alleged deception, they added. Read more

How the last five years will shape the next five years of payments innovation - In 2018, innovations like national real-time payment schemes including Brazil’s Pix and India’s UPI (and soon, FedNow) were still talking points. Today, those payment rails feature prominently in any discussion of cross-border payments and expansion into emerging markets. Read more

Money market fund assets surge on bank jitters - More than $300b has poured into money market funds over the last three weeks, driving the total assets invested to over $5t. The bank collapse prompted an outflow of deposits from smaller regional banks — and plenty of that cash landed in money market funds. The shift underscores the pressure that regional lenders — big sources of investment capital in some metro areas — continue to face. Read more

SoFi acquires leading fintech mortgage lender, Wyndham Capital Mortgage - The acquisition – which includes the integration of both talent and technology from Wyndham Capital – will allow SoFi to broaden its suite of mortgage products available to members, enhance unit economics, and take ownership of an intelligent and scalable platform that has set the industry standard for a fully digital mortgage experience. This “full stack” approach is also intended to minimize SoFi’s reliance on third-party partners and processes. Read more

FDIC retains BlackRock unit for Signature Bank, SVB securities portfolio sale - The face values of the two portfolios are about $27b and $87b respectively, the regulator said in a statement on Wednesday. The securities are primarily comprised of agency mortgage-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities. Read more

Select Financings

Acre - UK based blockchain mortgage startup raised £6.5m in new funding led by Aviva and Sesame Bankhall Group. Read more

Billy - New York based construction insurance startup raised $2.5m in Seed funding led by Entrada Ventures and MetaProp. Read more

Bitget - Seychelles based crypto derivatives exchange raised $10m in new funding led by Dragonfly Capital. Read more

DMI Finance - India based digital lender raised $400m in new funding led by MUFG Bank. Read more

Finanzguru - Frankfurt based open banking financial advisor raised €13m in new funding led by SCOR Ventures and PayPal Ventures. Read more

Finst - Netherlands based cryptocurrency exchange raised $4.4m in Seed funding led by Sentillia. Read more

Fourthline - Amsterdam based identity verification and anti-money laundering startup raised €50m in new funding led by Finch Capital. Read more

Franklin - US based startup which provides tax-compliant hybrid crypto and cash payroll services raised $2.9m in Seed funding led by Gumi Cryptos Capital and CMT Digital. Read more

Hype - New York based marketing and payments platform for creators and small businesses raised $10m in Series A funding led by King River Capital. Read more

InvestNext - Detroit based real estate investment platform raised $8.25m in Series A funding led by Whitecap Venture Partners. Read more

Kashet - London based private banking startup raised £5.4m in new funding led by Trifork Holding and Inacta. Read more

LayerZero Labs - New York based decentralized messaging protocol maker raised $120m in Series B funding led by A16z crypto. Read more

Li.Fi - Berlin based multi-chain liquidity and data gateway raised $17.5m in Series A funding led by CoinFund and Superscrypt. Read more

M^ZERO Labs - Berlin based decentralized counterparty risk reduction company raised $22.5m in new funding led by Pantera Capital. Read more

Native.ai - New York based market intelligence platform raised $3.5m in Seed funding led by JumpStart Ventures and Ivy Ventures. Read more

Peach Payments - South Africa based online payments firm raised $31m in new funding led by Apis. Read more

Quantexa - London based developer of tools to manage fraud, risk and compliance raised $129m in Series E funding led by GIC. Read more

Soft Space - Kuala Lumpur based fintech startup raised $31.5m in new funding led by Southern Capital Group. Read more

TerraPay - UK based payments infrastructure company raised $100m in Series B funding led by IFC. Read more

TipHaus - Seattle based tip distribution startup raised $3.5m in new funding led by Fuse. Read more

Zamp Finance - San Francisco based treasury management startup raised $21.7m in Seed funding led by Sequoia India and Southeast Asia. Read more


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