It’s hump day, Health Tech readers!
💰 Situational awareness: Nearly a third of adults responding to a recent survey from mental health website Verywell Mind said they’ve had to cancel a therapy session because they couldn’t afford it, and nearly half said they’d have to quit if their out-of-pocket costs increased, per the WSJ.
Illustration: Victoria Ellis/Axios
Petfolk, looking to offer a new breed of veterinary care, raised $40 million in a Series A round led by White Star Capital and Freshly founder Michael Wystrach, Sarah writes.
Why it matters: With more startups banking on pet parents’ demand for convenience, VCs are increasingly looking for their piece in an industry historically dominated by large consolidators and private equity investors — who have achieved big success in the sector.
Zoom in: Charlotte, North Carolina-based Petfolk, formerly known as One Vet, boasts a tech-enabled approach that it says simplifies access to health records and care teams through mobile centers while enabling personalized care plans.
- It operates in North Carolina, South Carolina, Georgia and Florida, and will soon be launching a 24/7 virtual care service.
- Petfolk prioritizes consumer (and pet) experience, promising a “stress-free” environment with a “calming fragrance” to keep animals relaxed.
Yes, and: Like many human health specialties, animal health continues to face a major labor shortage.
- Petfolk says it offers flexible hours to its veterinarians to prevent burnout.
- It has also eliminated non-competes.
Details: Petfolk’s lead investors are joined by Triple Point Capital, alongside celebrities Miranda Lambert, Dierks Bentley, Midland’s Mark Wystrach and Cameron Duddy, Jimmie Johnson, Erik Jones and Danica Patrick.
- Consumer industry leaders also participated, including Outdoor Voices founder Ty Haney, FIGS Scrubs founders Trina Spear and Heather Hassan, and several others.
- Petfolk was co-founded in 2020 by brother and sister Audrey and Michael Wystrach, the latter of whom sold his previous company Freshly for $1.5 billion to Nestlé.
State of play: Early-stage investors have increasingly poured capital into emerging vet tech models that focus on consumerization, affordability, or virtual access.
- The Vets, an at-home vet tech company, scored $40 million in January in a funding round led by Target Global.
- Warburg Pincus in October injected $170 million into Bond Vet, a tech-powered urgent care startup, not unlike a CityMD for pets.
- Modern Animal, a Los Angeles startup banking on pet parents’ demand for convenience and affordability, raised $75.5 million in July 2021
- Small Door Veterinary, a New York-based membership model, raised $20 million in Series A funding led by Toba Capital in June 2021.
Reality check: The burgeoning vet industry is still dominated by private equity.
- Those with real scale are the big, established consolidators, like TSG Consumer Partners’ Pathway Vet Alliance, JAB Investors’ NVA, and many others.