Are Robo Pets Taking Over?

Issue #65

May 14th, 2024

Quick Hits:

🌾 Foxtail is a real threat to your dog, so be careful out there.

🐼 Counterfeit panda? Chinese zoo under fire for dressing up a dog as a panda.

🇺🇸 Who’s more popular in your state? This map shows which states prefer dogs vs cats, the results might surprise you.

📸 This couple gave a touching send-off to their best friend who passed away.

💴 Drew Barrymore & Ring are raising half a million dollars.

Remember watching crazy sci-fi movies as kids? We thought the future we saw on screen would be really within 20 or 30 years. A new reality with robots, flying cars, lab-grown food, weird neon silver clothing, and weird haircuts, yes that crazy new reality was supposed to be our future, which is now.

Instead of all of that, we got AI videos that can mimic the president and potentially start WW3, so we’re making progress.

But I digress, while flying cars are nowhere on the horizon, and a lab-grown burger is still 50 times more expensive than a conventional burger, robots are already here.

Robotics is nothing new and is used in everything from manufacturing to agriculture, the medical field - I could go on, but pretty much all sectors. But I’m willing to bet that when most people think of robots they think about the ones in the movies that look like humans or pets and that would one day replace us or destroy us.

While some are bullish on the technology of robo-pets and its potential across multiple applications, no cold-hearted robot is going to take over the human-dog or cat bond in my humble opinion (more on that later).

We’ve all seen the Boston Dynamics dog “Spot” and its crazy videos (see gif below). Although recently they’ve gotten an upgrade to dancing mode, not sure when this would be necessary - but, nevertheless, here we are.

While I don’t think that robo dogs will ever replace real dogs - you know, the ones we love and cherish with all our hearts and that fill us with love & joy. I do think that they can (and maybe should) replace working dogs in some applications that would make it safer for dogs, humans, and everyone involved. To a degree, this is already happening.

Let’s break down the 3 categories:

• Working dogs (Police, army, drug sniffing, inspections, security, hunting, public safety, etc...)

• Companion dogs (everyday pets)

• Therapy dogs (PTSD, blindness, memory loss, etc..)

Working dogs

Every year, thousands of dogs die in the line of duty all across the world. These dogs are highly trained and perform life-saving missions in a myriad of different sectors but unfortunately, some end up paying the ultimate price. If a robo-dog could eventually perform the tasks of an elite army or police dog while still keeping their humans safe, I think most people would argue the ethical thing would be to use the robot. Although today robo-dogs are used in some cases in the military we are still decades away(just a guess) from robots having the capabilities, intelligence, and wherewithal of a highly trained dog.

So while Spot (Boston Dynamics) and his friends are not being deployed to Fallujah anytime soon, they are in fact already being used by some big companies. The kicker is, they are not replacing dogs, but humans.

Merck and BP, are using Spot to autonomously read gauges, monitor corrosion, and measure methane on some of its oil rigs in the Gulf of Mexico.

And many other international conglomerates are currently testing these “dogs” in everything from routine inspections in chemical plants, mining operations, offshore monitoring, and other dangerous places.

A few companies worth highlighting:

• Anybotics- Switzerland

• Boston Dynamics - USA

• Ghost Robotics - USA

• Deep Robotics - China

• Unitree Robotics - China

• Weilan - China

These last two companies seem to be at least partially focusing on the personal robotics market while the rest are geared toward different industries.

In a market report published by Credence Research, Inc., the global demand for the Robotic Pet Dogs market was valued at USD 1.2 billion in 2022 and is expected to reach USD 4.5 billion in 2030.

Therapy dogs

We all know pets can help humans in so many ways. From physical trauma to mental difficulties and so much more, dogs and other animals have proven amazing in helping humans cope with and even heal from so much. However, some people may need these special pets but don’t have access to them. Could be financial, could be dementia (which doesn’t allow them to properly care for the pet), or other diseases.

Robotic therapy dogs are increasingly being used in healthcare facilities to provide companionship and emotional support to patients, particularly the elderly and those with cognitive impairments. This might seem like a small thing but companionship has been proven to help cognitively and emotionally.

Likewise, there's ongoing development of robotic assistance dogs designed to support people with disabilities by helping them with tasks like retrieving items, accessing doorways, and maneuvering through obstacles.

Companion dogs (everyday pets)

Here is where some people get that ick. We love to talk in platitudes, such as “this is the best thing ever”, or, “this thing is going to take over”, etc… We tend to jump on bandwagons and succumb to trends because well, humans have a herd mentality - which is both good & bad.

So when we hear a company or “journalist” say something like “this is going to make pets obsolete”, we immediately recoil and push back as anyone who has ever loved a pet would.

You have probably seen videos like this which make it seem like owning a pet robot is cool, fun, and easy, and thought to yourself “that does look kinda cool”, or come across Sony’s companion dog Aibo (at a hefty price tag of almost $3000) that comes with advanced sensors, cameras, and AI algorithms and thought to yourself “ah that’s cute, my kid would love this”, and you wouldn’t be wrong.

There are a lot of companies that are developing robotic pets that mimic pets and offer an interactive experience, making them cuter and fluffier and more of a Disney version of a pet than our actual pets. No toy on earth can replace a union thousands of years in the making that is woven and embedded into the evolutionary bond between humans and dogs.

Technological advancements are amazing, they are often being promoted as a cure for all. However, we’ve seen and keep seeing that not all technologies prove themselves, are right or connect with folks who don’t want change. At the end of the day, the tech is as good as the people who make it and the people who consume it (or don’t)

So no, robo-pets are not taking over, but they will be more common. Advancements in AI, robotics, and material science will enable the development of more sophisticated and lifelike robotic companions with enhanced capabilities for interaction and communication.

So if you think youre phone is spying on you, just wait til Google releases its first AI dog.

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Last month we started talking about your growth strategy. Investors want to see a clear and credible story here. They know things will ebb and flow and you may need to adapt your thinking, but the key implied message here is that you are..well.. thinking! Same thing as financial projections. They will obviously change, but the key is to demonstrate you are thinking about the future. So, let's talk about organic growth a bit more.

Organic growth, roughly speaking, is the growth a company achieves from its existing business. Think about increasing your sales (and hopefully profits) from products you develop in your core business, not companies you acquire (that's inorganic). Therefore, organic growth tends to be the default growth route for younger businesses. Within this, there are two key ways to grow:

• Extend product range - This is the least risky one to deliver and explain. You are increasing the products you sell to your existing clients. You should know your clients, so in theory, a de-risked proposition. Your investors would want to see (1) proof there is a need/desire for this new product and (2) a plan that is ROI/NPV positive on the product investment. If you have already started doing this, think about demonstrating cross-promotion and cross-sell.

• Expand geographically - This is a slightly more risky proposition. You take your existing products and go to a new geo. There are costs to set up an operation internationally, supply chain to think about, and our favorite topic (no joke!), taxes to consider. Again, think about de-risking your story here. Can you work with a local partner? EOR companies to think about and multiple legal entities you may need to manage. You will often see this route being taken post a Series A/B fund-raise as it requires more capital for expansion. So tailor your story carefully depending on your stage.

Lastly, one area that has seen quite a bit of growth in recent years is product-led growth, aka PLG. In essence, because your product is so good, it does the selling and the expansion for you. We thought this link was quite helpful. We will cover some of the considerations around inorganic growth in the final piece of this series.

You reached the end, you deserve a treat 🍖

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Woofles!

See you Thursday!