Start-ups play a key role in driving innovation in all industries, and the pet care sector is no exception. So, what do pet industry accelerators offer in terms of funding, tools and opportunities? And which trends or areas offer the most interesting growth prospects?
Tailored content
The main role of accelerators is to provide the necessary support to companies aiming to scale their ventures. Depending on the specific needs, most accelerator programs provide mentorship from industry entrepreneurs as well as executives working at consumer packaged goods (CPG) companies, retailers and investment firms.
SKU is a CPG accelerator that made a foray into the pet industry with a 12-week program in 2023. The SKU program provides participants with key insights about exports, direct-to-consumer (DTC), logistics, financial planning and branding, among other things. The accelerator also helps companies in their preparation for pitching to investors by aiding with crafting storylines, refining decks and enhancing their delivery skills.
“The teams are supported by a group of 6 to 8 mentors, each bringing a distinct background and experience, collaborating with the founder throughout a 12-week program,” says Buff Greebe, Executive Director at SKU.
Rachel Sheppard, Director at Leap Venture Studio program, highlights the opportunity of offering ‘tailored content’ to address the unique needs of participating companies. “Through our accelerator, companies receive personalized support to scale their ventures. Tailoring our approach to the unique needs of each founder, we provide hands-on guidance to overcome challenges,” she tells PETS International.
Increasing popularity
The popularity of accelerator programs has increased in recent times, especially from pet care start-ups that want to receive financial help to boost their business.
“We have observed significant interest from pet care start-ups eager to join an accelerator program, whether it’s independently operated, or sponsored and managed by venture arms of established industry players,” states Greebe.
Similarly, Mars Petcare’s Leap Venture Studio, launched in 2018, has experienced a consistent upward trend in applications over the past years. The program offers participants capital worth $200,000 (€184,833).
The average profile
Companies joining the accelerator programs are not just operating in the pet food segment, but also in areas such as toys, luxury accessories, apparel and tech. According to SKU, the revenue of applicants typically ranges between $50,000 (€46,000) and $5 million (€4.6M). While SKU is mainly focused on the US market, Greebe says that it regularly receives applications from European and Latin American pet companies that either want to enter the US or already have an established footprint in the market. To date, Mars Petcare’s accelerator program has supported 45 companies from 15 different countries.
Setting benchmarks for success
Greebe says that many pet companies that participated in the program are already on the road to success and are attracting substantial interest from both venture capitalists and strategic players.
For example, Innovative Pet Lab (IPL), an American company offering advanced health screening tests for pets, has grown its revenue by 44% after it participated in the SKU cohort in 2023.
“We’ve seen tremendous growth in new partnerships, email campaign conversions and improved user experiences, as well as paid social media conversions. The accelerator helped us set benchmarks for success in these areas as well as strategies for future success,” says company CEO Jamie Smith.
As from this year, IPL’s products are also available via Amazon and Chewy. “Without our accelerator program, this would have taken much longer to accomplish. They opened doors with warm introductions that were invaluable,” adds Smith.
Fostering innovation
Egyptian pet care company Vetwork has also benefitted from its participation in multiple accelerator programs between 2019 and 2023, including by Google, Microsoft and Unleashed from Purina Accelerator Lab. “The educational component was invaluable for my team and me, and the networking opportunities were the most impactful,” says founder and CEO Fady Azzouny. In his view, pet industry accelerators play a “crucial role” in fostering innovation.
Bright prospects
Greebe forecasts a bright and booming future for pet industry accelerator programs. “In the current competitive landscape, marked by more stringent access to venture capital, accelerators like SKU are actively seeking start-ups that introduce transformative products to the pet care sector or pioneer new categories.”
Smith draws attention to the chance for accelerators to innovate by focusing on specific niches within the pet care market, rather than just having tracks for the general pet industry: “I look forward to more organizations providing these types of opportunities to pet care companies.”
Accelerator programs in 2024
Most of the annual pet accelerator programs started in March. The 8th annual pet care accelerator by Leap Ventures attracted more than 200 applications from 42 countries. Just 6 start-ups from around the world – all operating in the pet health sector – were accepted for this year’s 12-week program.
Unleashed by Purina is currently underway with a total of 8 participating companies. It has a similarly international flavor, with participants coming from the UK, France, Greece, Austria, Singapore, Canada, Brazil and Mexico.
SKU’s 2024 accelerator program also has 8 participants, including Wellnergy Pets offering wellness products. A second program will run from August to November.
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