Despite cats as pets outnumbering the number of dogs, cats have been overlooked with most of the focus on our canine friends, and much of the products for cats are really just repurposed from dog-centric offerings. Smalls is the direct-to-consumer human-grade cat food brand designed specifically for cats and their loyal owners. The cat meals are tailored to a cat’s breed, size, and health goals and feature nutritious meals that are high protein, consisting of quality ingredients. The company offers both wet and dry offerings and has a line of accessories for cats that include litter and toys.
AlleyWatch caught up with CEO and Cofounder Matt Michaelson to learn more about building a cat-centric brand in a dog-centric world, the company’s biology-based approach, and recent funding round, which brings the total funding raised to $12M since the company’s founding in 2017.
Who were your investors and how much did you raise?
For our Series A round, we raised $9m total led by Left Lane Capital. This latest round includes participation from previous investors Founder Collective and Companion Fund.
Tell us about the product or service that Smalls offers.
Smalls delivers fresh, human-grade cat food, right to your doorstep. We are the first and only brand purpose-built for cats, making honest, high-quality nutrition a no-brainer for cat parents across the US.
What inspired the start of Smalls?
Calvin (cofounder) and I grew up as neighbors in Portland, OR. In the late 90s, the organics and fresh food movement was gaining traction in the community, and with our families. Having dogs and cats growing up, we began to wonder why there was so much intention and consideration for what went on their plates, but not their pet’s bowls.
20 years later, this same movement began to change the way people fed their dogs, but we wanted to do something for cats, who have often been overlooked and underappreciated by culture and the pet care industry at large.
How is Smalls different?
Smalls believes in making the right choice, the easy one, through human-grade ingredients, gently cooked to be complete and balanced meals designed for cat’s biological needs.
Cat food, like much of the pet care industry, has always been dog-first, so by focusing on felines and their needs, Smalls is addressing a large gap in the market.
What market does Smalls target and how big is it?
Smalls is here to support the 95m+ housecats and their humans across the US. In light of COVID-19, reports are also showing that this number is only growing, as pet adoptions are at an all-time high.
What’s your business model?
Smalls is a direct-to-consumer subscription service for all of your cat’s needs, including nutrition, care, and play.
How has COVID-19 impacted the business?
COVID-19 has changed everything about our daily lives—but one thing is a constant: cats need to eat. Being DTC, we’ve seen a lift in business as communities are under shelter in place mandates and consumers don’t want to make runs to their supermarket or pet store. While the human-grade meat supply chain has been put under pressure with COVID-19, we’ve been able to be nimble and actually grow our subscription base to the point where we’ve needed to bring on a second co-manufacturer to meet demand.
What was the funding process like?
We kicked off our round right when COVID-19 was shutting down most of our economy and changing our way of life. So much of funding is building personal relationships with investors, so trying to do that exclusively through Zoom was a challenge, but we quickly got our footing.
What are the biggest challenges that you faced while raising capital?
The biggest challenge faced was really in staring down a recession, but in general, pet food is relatively recession-proof, and our business model worked to our advantage.
What factors about your business led your investors to write the check?
There are approximately 94 million pet cats in the U.S., compared to around 89 million pet dogs, however, about 95% of VC funding in the pet food industry has been invested in dog-centric companies. Smalls is leading the charge on disrupting the industry.
What are the milestones you plan to achieve in the next six months?
In the next 6 months, we’re focusing on expanding our assortment to include new flavors and will be investing further in research and development for supplements and prescription diets. Cats are predators and obligate carnivores, and don’t fit into the dog-size mold the industry has built. Cats have a notoriously picky pallet because unlike dogs who are historically scavengers, cats are instinctually programmed to have preferences when it comes to what they eat. By expanding our protein and texture offerings, we’re continuing to put cat’s needs first in a biology-based approach.
In the last decade, there has been a growing health epidemic in cats, largely fueled by poor diets that cause obesity, digestive complications, and costly vet bills. While our food today can be thought of as preventative “medicine” for healthy cats, we also want to do our part to address specific health concerns through our methods.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Prior to our raise, we really focused on setting a solid foundation internally and investing in our operations so we could support impending growth. That involved making key hires and looking back at why we got started in the first place to craft a game plan that set us up for success.
Prior to our raise, we really focused on setting a solid foundation internally and investing in our operations so we could support impending growth. That involved making key hires and looking back at why we got started in the first place to craft a game plan that set us up for success.
Where do you see the company going now over the near term?
We’re looking forward to growing our 18-person team to 20-24 in the near term, so we can continue to accelerate growth.
What’s your favorite outdoor dining restaurant in NYC
Lately, when it hasn’t been too hot, I’ve preferred just grabbing some quick snacks and having a make-shift charcuterie at Washington Square Park!
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