The pandemic has increased the adoption of telehealth services and this is no different for pets. According to the American Pets Product Association, Americans spent $99B on their pets in 2020. Yet 81% of pet owners would not be able to cover an unexpected $5,000 out-of-pocket expense for their furry loved one. Pawp is a digital health clinic and telehealth platform for pet owners and their pets that connects them with vetted veterinary professionals in minutes, without needing an appointment. The company also provides an annual $3,000 emergency safety benefit for emergency vet services that’s included within the $19/mo subscription fee. Pawp covers up to six pets in a single household and the subscription providers coverage regardless of a pet’s age, breed, and pre-existing conditions.
AlleyWatch caught up with CEO and Cofounder Marc Atiyeh to learn more about how the pandemic not only drove the demand for telehealth vet service but also pet adoptions, the company’s future strategic plans, latest round of funding, which brings the total funding raised to $16.3M, and much, much more.
Who were your investors and how much did you raise?
We raised a $13M Series A. Lux Capital led the round, but there was participation from Good Friends (founders of Warby Parker, Harry’s, and Allbirds) as well as follow-on from earlier investors. We also had digital health innovators Ro, ZocDoc, and Eight Sleep, as well as the founders of Ramp, Better, and Deel.
Tell us about the product or service that Pawp offers.
Pawp’s offering is two-fold: We’re a 24/7 digital clinic for pets, providing real-time vet advice. We also offer a $3,000 safety net for emergency vet bills. The idea is that Pawp is there through every stage of the emergency, helping provide expert pet care as well as help paying for it.
What inspired the start of Pawp?
While my background is in fintech (Clarity Money, Paribus), I started Pawp because I’m a pet parent. I have two dogs and over the course of caring for them, I have noticed a real dearth of reliable information on the internet. When I first became a pet parent, I was looking for more than the anecdotal advice that I found on blog posts. I wanted to talk to someone I could trust: a vet. Pawp’s mission is to give pet parents affordable access to the advice, care, and funds they need to enrich and extend their pets’ lives.
How is Pawp different?
Pawp bridges two markets: our state-of-the-art digital vet clinic is the only 24/7 vet service that allows you to video chat with a vet, no appointment required. Our emergency fund is a far more affordable alternative to traditional pet insurance, providing a “rainy day” fund so pet parents are never forced to make difficult healthcare decisions based on financial constraints. Unlike pet insurance, we offer one flat monthly membership fee regardless of a pet’s age, breed, location, or preexisting conditions. One Pawp plan protects up to six pets (cats and dogs) in a household at no extra cost.
What market does Pawp target and how big is it?
According to the ASPCA, it’s estimated that 78 million dogs and 85.8 million cats are owned in the United States. Approximately, 44% of all households in the United States have a dog, and 35% have a cat. The market is big and it’s growing. Our 24/7 digital vet clinic provides pet care from the comfort of home, which is vital in areas with limited or no access to vets. Our emergency fund provides a financial safety net for life-saving pet care. One of our most important goals as a company is to reduce the number of pets who are surrendered or put down because an owner can’t afford a vet bill. It’s tragic and it happens far more often than it should. There’s only 2% penetration of pet insurance in this massive pet market; millions of pet parents are looking for a different solution — ours.
What’s your business model?
For $19/month, Pawp offers 24/7 unlimited access to vets (video chat and text) and a $3,000/year emergency fund. One Pawp plan protects up to 6 pets (cats and dogs) in a household.
How has COVID-19 impacted the business?
COVID-19 had a huge impact on the business, and thankfully a very good one. The growing prevalence of telehealth in the human space was already helping demystify televet, but the pandemic also brought a huge influx of pet adoptions. It drove us to refine our offering, knowing that we had a product pet parents really needed. Many vet offices were closed or had limited hours. Our 24/7 digital vet clinic provided crucial access to pet care for many pet owners who would otherwise be without it.
Our choice to supplement the clinic with our Emergency Fund was also borne out of the same necessity. Now, more than ever, people couldn’t afford unexpected vet bills. We wanted to make sure pet parents had the support they needed to take care of their pets.
What was the funding process like?
We have been so lucky to be in touch with some of the most sophisticated and forward-looking investors who could recognize the unique position of our product within the market. We had a very specific vision and we got a lot of support. It was clear investors also recognize the industry is ripe for innovation, as we were oversubscribed 3x.
What are the biggest challenges that you faced while raising capital?
We were looking to build a well-rounded cap table instead of looking for well-rounded investors.
What factors about your business led your investors to write the check?
We’ve got the right idea and the right team at the right moment in time. There’s a reason pet insurance only has 2% market penetration: it’s expensive and doesn’t address the biggest need for consumers — financial help in the event of an emergency. Our product uniquely addresses two essential needs when owning a pet: access to quality vet care and help paying for it.
We’ve got the right idea and the right team at the right moment in time. There’s a reason pet insurance only has 2% market penetration: it’s expensive and doesn’t address the biggest need for consumers — financial help in the event of an emergency. Our product uniquely addresses two essential needs when owning a pet: access to quality vet care and help paying for it.
What are the milestones you plan to achieve in the next six months?
Growth — on every front. We have aggressive goals: more subscribers, more offerings, more value within pet care. We’re also very focused on growing the team. We are a passionate, mission-driven group and we are looking for talented people who also want to save the world one pet at a time.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Do one thing and do it very well. Take advantage of everything available to you as a small company — free hosting credits, discounts on startup plans, etc.
Where do you see the company going now over the near term?
There’s only one direction – up. We are expanding on every front.
What’s your favorite outdoor dining restaurant in NYC
Tabare Restaurant.
