American investment firm launches pet fund

Denver-based investment firm Vetted Capital is preparing to raise between $150 million (€138.1M) and $300 million (€276.3M) to support early and growth-stage startups in the pet care sector.

The firm is set to secure $50 million (€46M) from limited partnerships this year, including a contribution of $15 million (€13.8M) from an unnamed “strategic” investor.

The investment capital will be split into three categories: 40% for early-stage ventures, 40% for growth opportunities, and 20% for flexible investments, including convertible debt options.

More details

Vetted Capital co-founder Charles Tapp explains to GlobalPETS that as part of their “intersectional focus” on consumer, healthcare and pet technology, they will prioritize investments in high-margin areas with strong potential for returns, such as animal health, biotech and premium pet food.

Vetted is interested in later-stage investments (Series B/C) and “occasional Series A cases showing exceptional growth.”

In healthcare, the focus is on Series A and B rounds, targeting companies that align with a “One Health” approach, de-risking breakthroughs in human health through veterinary advancements. Technology investments are expected to focus on artificial intelligence (AI), Software as a Service (SaaS) distribution models and consumer marketplaces for pet and vet channels.

The fund will prioritize North American opportunities, for which the company will allocate half of the capital injections. Asia Pacific and Europe will each receive 20% of the funding.

According to the capital market tool PitchBook, venture capital in the pet sector dropped by 44% last year, with funding totaling $1.75 billion (€1.6B).