Kormotech launches venture arm to help pet care companies seeking investment

The Ukrainian pet food manufacturer plans to allocate up to $300,000 to fund innovative projects across Europe and the US.

The initial goal of Kormotech Ventures is to “incubate and scale innovative companies by developing the next generation of solutions that combine nutrition, technology and world-class talent.” In the future, Kormotech aims to integrate these companies into its portfolio.

The venture arm, headquartered in London, is initially focusing its work on the Americas and Europe—including Ukraine—as the pet food manufacturer already has experience in those markets.

“We have the most experience in these markets, so we can really help there, share contacts and expertise, and be real partners for start-ups,” points out Kormotech’s CEO Rostyslav Vovk.

The final decision process is down to the venture committee led by Yaroslav Khromyak, Kormotech’s Head of the US Market. This committee meets once a month to look at new ideas and decide whether they are interested or not and whether to make a move on a certain project.

The investment

GlobalPETS learned that the initial investment of this new venture arm will be between $20,000 (€19,096) and $100,000 (€95,480). Kormotech’s strategy is to invest “relatively small amounts” early on to gain a significant share afterward.

“We do not make it our goal to invest in a certain number of start-ups. I do not rule out that next year there may be zero start-ups, or there may be two or three,” says Vovk.

The CEO points out that they aim to allocate between $200,000 (€189,800) and $300,000 (€284,700) per year for new investments.

The first transaction

Kormotech Ventures has recently completed its first acquisition. The company was attracted by Rocketo, a Lithuanian direct-to-consumer (DTC) brand of organic air-dried dog food.

It first invested $100,000 (€95,495), followed by an additional $300,000 (€286,486).

After the acquisition, Kormotech received a majority stake in the company and took over the brand’s management. “We have committed to an investment of €1.5 million ($1.58M) by the beginning of 2024,” points out Vovk.

Rocketo is currently focused on scaling in the British market by developing its omnichannel distribution as well as direct sales through its website. It also has a significant presence in Sainsbury’s, the UK’s second-largest supermarket chain.