AI in the pet space

Issue #29

October 24th, 2023

Quick Hits:

🎙 If dog’s had a podcast

🩺 Every dog owner will relate to this

🇰🇷 South Korea wants to boost pet insurance enrollment

🐱 This cat is the Guinness World Record holder of the loudest purrrr

🇸🇬 Singapore’s pet market

AI, you might have heard of it. It seems as though no industry is immune to it, from banking and finance to marketing, logistics, writing, and transportation, to name a few. AI is the hottest buzzword of 2023, and will undoubtedly not only change many industries in the coming years but will create many millionaires in the process. However, only time will tell if it will be an all-encompassing change to every sector possible (like many predict) or a more industry-specific overhaul with less broad implementation.

A recent report from Goldman Sachs estimates around 300 million jobs could be affected by generative AI, meaning 18% of the global workforce could be automated in the coming years. Every new technology brings promise and fear, however, AI seems to have brought both of these to the next level.

Before we jump in - what is AI? Yes, it’s more than just ChatGPT, dude. In simple terms - Artificial Intelligence (AI) refers to computer systems that can perform tasks requiring human-like thinking, learning, problem-solving, and decision-making.

But how if at all, will AI impact our 4 legged buddies? Well, there are already a ton of new companies looking to leverage AI in order to improve the lives of our furry pals.

This explosion in pet ownership during the pandemic has given rise to a burgeoning pet tech market, projected to be worth a staggering $22 billion by 2028.

Pet parents want to take the best possible care of their pets but simultaneously want ease and automation as they juggle an already hectic schedule. Tech-driven solutions have become absolutely indispensable for pet owners in today's modern world.

This is why there is currently a boom in innovation in categories such as:

• Drug discovery

• Smart collars

• Pet observation cameras

• Automated feeders

• Animal behavior

• Personalized Nutrition

• Veterinarian diagnoses

• Biometric identifications

• Predictive diagnostics

• Wearable devices

• Remote consultations

• Interactive pet toys

• Adoption matching

• Pet insurance

• Pet waste management

To name a few…

The applications for AI in pet tech are seemingly only limited to our imagination.

With the rapid advancements in technology, pet owners now have a wide array of innovative tools at their disposal to ensure the well-being and happiness of their beloved furry companions.

However, one area that has substantial growth and has attracted a ton of VC interest in recent years is pet health.

There are many new advancements in veterinary care and pet health because people are focusing more on their pets' well-being. This is creating a big opportunity for new and innovative pet health solutions, and venture capitalists are taking notice. Artificial intelligence and data analytics have made pet health technologies better, which means personalized solutions for pets. These technologies are helpful for pet owners and veterinarians, and investors see the potential. Pet parents are seeking to integrate technology to both ease their lives but also to help their pets be healthier and safer for longer, pets are officially the new babies.

The global companion animal health market size in 2021 was just shy of $20B. However, it is set to reach $43B by 2030, growing at a CAGR of 9.3%

There are countless startups utilizing AI capabilities in the pet space, here are 4 companies we wanted to highlight.

1. Umbrella Vet is an artificial intelligence-powered app to track and manage the health of pets. It equips the pet owner with the tools and analyses to determine the best course of action in a health plan.

2. Petnow - A dog biometric ID app that employs AI software to scan and recognize unique canine identifiers, such as “nose prints.” These wrinkle patterns around the nostrils serve as a distinct identifier for each dog, and the app cross-checks them against a scan of the animal’s face for added accuracy.

3. VERA - The latest innovation from the team at AskVet bringing the power of AI to the pet industry. VERA is AI built for pet parents, with accurate and immediate answers to time-sensitive consumer questions. Based on a data set of over 1.5 million interactions between pet parents and veterinary professionals. VERA creates a unique conversational tool for pet brands to transform their customer experience in-store and online.

4. Pawtrip - Offers a platform to search, plan, and prepare for traveling with your pets, offering people the ability to learn what they may not know about having a successful traveling experience. Their AI leverages pet and travel data, only from verified and trusted sources to provide detailed responses that most people can’t easily find on the internet. They provide a simple user interface powered by AI to share that information with pet parents in a simplified and easy-to-understand manner.

There are a ton of emerging opportunities in the pet space in general and within AI specifically. While you do not have to incorporate or leverage AI into your product or service it will definitely help if you are trying to raise capital in this current environment. Moving forward we are going to keep an eye on this space and report on new startups, category disrupters, and founder insights.

• Pet health is booming - P3 Technologies Secures a $10 Million Investment.

• Tyson bets on bugs - Tyson, the world's second-largest processor of meat, just invested in insect protein startup Protix.

• Cats - 15,000 attended a 2-day cat expo in Cleveland.

• Creature Comforts - The UK pet tech company just raised £7m.

• Petfolk - Raises $40M in Series B Funding to Continue the Evolution of Veterinary Care.

• ADM - announced it has invested $33 million to build and open a new pet food production line in Guadalajara, Jalisco.

• Rover - Last week, the CEO sold 34,200 shares of the company.

• Bought out - One in 5 Scottish vet practices are now owned by just one company – Independent Vetcare Limited.

PAWS right there!!! Don’t forget to subscribe 👇👇

• Bread - MEVLI Pet Food is exploring the potential of using upcycled bread in pet food.

• Lab-grown for kitty - Cult Food Science is aiming to release the world’s first cat treats made out of cell-cultivated snapper.

• Recall - TFP Nutrition Initiates Voluntary Recall.

• Simon Biles - The Olympic gymnast is the official spokeswoman for Nulo.

• RIP Bobi - Bobi, the world's oldest dog, dies at 31.

• Don’t bully my breed - Why the UK Bully XL bans are about human prejudice — not the dogs.

• Move over - Man buys 3 seats on a plane so his Great Dane can travel with him.

• Dog or human? - Watch this 3 legged dog walk on 2 legs perfectly.

• Sterilization & obesity - Is there a connection?

• Meth on the trail - A terrifying story of a dog eating the wrong thing while hiking.

• Schwarzenegger - How the Hollywood star got a pet donkey.

The pet insurance space presents lots of opportunities to go after. Next week, we will share some facts about the UK market as well.

You reached the end, you deserve a treat 🍖

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Finally, what do dogs eat for breakfast?

Pooched eggs!

See you next week!

The Woof is a weekly newsletter dedicated to covering the pet industry.