The Hardest Moment...

Issue #26

October 3rd, 2023

Quick Hits:

🧬 So what breed is your dog?

🇬🇷 Going back to Greece for the cats

🐹 Tiny pets are big business

🐊 A man and his support alligator were denied entry to the game

⛺️ How to set up a tent

The Most Underserved Part of the Pet Lifecycle: End of Life

Talking about the end of a pet's life is something most people, understandably, avoid. When you open your heart to an animal, the last thing you want to do is prepare your heart to say goodbye.

However difficult it may be, it's important to recognize that just like any other stage of a pet's life, end-of-life deserves attention, care, and options that meet the unique needs of pet parents going through the pet loss journey.

Most pet owners find themselves unprepared and overwhelmed when the time comes to make difficult decisions regarding their pet's end of life. The absence of pre-planning and the fragmented resources available can make an already painful experience even more distressing.

The journey that pet parents go through, and the decisions that they need to make when saying goodbye are fundamentally different from the process of saying goodbye to a loved one. There is no funeral director for pets like we’re used to seeing when a loved one passes. This critical difference highlights the necessity for products and services designed specifically to support pet owners through the difficult journey of saying goodbye to their animal companions.

Coda is Taking on Pet End of Life

A new startup, Coda, is focused on serving this often ignored part of the pet lifecycle and has set out to improve all aspects of the end-of-life journey for pet parents. Unlike many who shy away from discussing pet loss, Coda is a company that is tackling the challenging subject head-on.

Coda launched their first product, a memorial marketplace and resource center in July of this year. Their mission is to provide a comprehensive set of resources and memorialization options (urns, cremation jewelry, memorial decor, artwork, and grief support) tailored to the unique needs of pet owners going through the pet loss journey. The company’s ultimate goal is to change the status quo by offering support that spans the entire end-of-life journey, from pre-planning to memorialization.

Approximately 9 million companion dogs and cats pass away in the United States each year. This number is on the rise, making it more critical than ever to address this part of the pet lifecycle. The global pet funeral services market size was valued at $1.6 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.27% from 2023 to 2030. Coda founder, Sydney Dahl, estimates that with proper support and improved experiences for pet parents, pet memorial sales have the potential to propel that market to over $3 billion.

Founder Sydney Dahl is an engineer and product manager and brings a modern and tech-forward approach to a typically old-school industry. She pulls inspiration from over a decade of experience working in the tech industry, including her time at Apple. She led Coda to successfully fundraise the company’s first checks earlier this year from friends, family, and angels.

Trends & Others Redefining Pet End-of-Life

Coda is not alone in its quest to redefine the pet loss journey. There are more companies launching each year in an attempt to improve the support and guidance that pet parents receive during the most difficult time of the pet lifecycle - end of life.

One emerging trend is making the transition for pets more comfortable through in-home euthanasia services. Companies like Lap of Love, which specialize in in-home euthanasia, are gaining traction and growing rapidly in popularity. These services provide a more comfortable and peaceful environment for pets and their owners during their final moments together.

Additionally, there are many companies dedicated to giving pet parents memorial options other than standard urns.

• Parting Stone solidifies cremated remains into beautiful, lasting stones.

• Oaktree or Welkin Memorials create urns that are also as vases, so that the urn seamlessly integrates into your decor and can be proudly displayed.

• Eterneva creates beautiful diamonds from cremated remains.

• Artwork that incorporates cremated remains

While the end of a pet's life is a topic that many prefer to avoid, it is an essential part of the pet lifecycle that deserves attention, care, and resources dedicated to its unique needs.

Companies like Coda are addressing this underserved part of the pet lifecycle head-on and are dedicated to making the burden during that time a little bit lighter. Additionally, emerging trends in the industry, such as in-home euthanasia and innovative memorialization options, are reshaping the landscape of pet end-of-life care.

Together, these startups are ensuring that pet parents feel less alone and have the options and support they deserve to navigate this challenging journey with compassion and dignity.

• Chinese pet tech brand raises A+ round - Pet tech brand Pet Marvel just raised CNY 100 million.

• China’s pet superstore - Marsmart is looking to dominate the Chinese market.

• Small Door Vet for sale - the company, which is not yet profitable is currently on the market for $70M.

• Global pet food supplements - Supplements are big business and are expected to keep growing.

• Vidivet - Liverpool-based pet HealthTech platform has secured a six-figure investment.

• Purina launches accelerator in Latin America - Pet startups from Brazil & Mexico can now apply to the accelerator.

• New corporate location - Wag N’ Wash is opening its flagship store in Ann Arbor.

• What is your dog’s Skincare routine? - Cleansing products for canine paws and fur are part of a growing market.

• Splurging on fur babies - UAE’s pet industry market is expected to surge to $2 billion by 2025.

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

• Omega - Instead of marine-based omega sources, WagWell is turning to the first-ever proprietary blend of Ahiflower, a plant-based source.

• Class status for pet owners - Consumers in Illinois are moving forward with their class action lawsuit against Hils Pet Nutrition.

• Holistic approach - Wagnolia, is one of many new dog food stores focused on healthy products.

• UPF invests $1.8M - This NJ co-packer is committed to supporting the growth in the pet food sector.

• The king of the pool hall - This cat should turn pro.

• Not again? - Commander, President Biden’s dog bites another Secret Service agent.

• Who’s a good boy, raise your hand - New study suggests therapy dogs in classrooms may improve children's well-being

• Why your dog will but the cat won’t - There’s actually a reason why cats are such picky eaters.

• No, black cats are not bad luck! - Time to eliminate this stigma.

• Luckily, reunited - After a brutal attack on her & her dog, this owner was reunited with her sweet Pitbull.

• Chef reaction, doggy edition - What rating did this homemade meal get?

As you embark on your external funding round, you may come across quite a few legal docs and acronyms. We thought we would try to clarify some of these.

Let's crack on:

NDA: Non-Disclosure Agreement. Alternatively, you may hear it referred to as a Confidentiality Agreement. It does what it says on the tin – defining how parties should treat and maintain confidential information that you share. You want to get respective parties (investors, lenders, key parties) signed up before you share any of your secret sauce.

LOI: LOI stands for Letter of Intent/Interest. You may also hear IOI - Indication of Intent/Interest. This may be a high-level letter or even an email/call touching only on select critical terms (things like valuation and dilution predominantly). Note that (1) it's unlikely to be legally binding and could be open to interpretation given its high-level nature and (2) in some fund-raising processes you may skip this step for simplicity/efficiency as it will effectively be covered in the term-sheet phase.

 Term Sheet: This would probably be the first "meaty" document you get. It should be in writing (don't settle for anything else) and should outline, in a detailed manner, a lot of key terms/items involved with the raise. It's unlikely to have everything covered and again, term-sheets are usually not legally binding. While it outlines the economics, which are obviously important, don't lose sight of things like approval of the actual investment or board dynamics to name a few. These items will have a direct impact on how long it takes you to complete your investment round and how you work with an investor.

Investment Agreement and Shareholder Agreement - These will be chunky documents that come at the end of the investment round and once executed, are legally binding. It is critical that you read these in detail and ask any questions you have (you will probably have lawyers helping you at this point). You may sometimes see folks who invest for a living or advisors refer to these docs as IA or SHA. The Investment Agreement will outline the mechanics of the investment (with a lot of words!!). It will outline items such as how much is invested, how many shares are issued, share price, etc. The Shareholder Agreement will articulate how the different shareholders work together post-investment. This is a super important document to read as it outlines things you can and cannot do and articulates where approvals (and from whom) are needed. We said it before but no harm in repeating it - please make sure you read it and understand everything.

You may also come across situations where the "Articles" (Articles of Association or AoA) need, or are asked, to be amended. This falls in the same bucket as the IA/SHA and tends to be an extension of one of those docs. It will be legally binding, so make sure you are aware of the details. Lastly, different countries will have different market practices which your lawyer could advise you on. While the above is not legal advice it should capture a lot of the "essence" of these elusive funding rounds… good luck!

You reached the end, you deserve a treat 🍖

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