Something Fishy...

Issue #43

February 6th, 2024

Quick Hits:

🌰 That’s just nutty

🩺 Doctors visit vs vet visit

⚽️ If dogs were soccer players

🛏️ Functional + chic

🧖‍♀️ Spa Day with Scarlett Johanssen 

Update: Loyal, a biotech company pioneering longevity drugs for dogs, recently announced that it has dosed the first dog in its STAY study, the pivotal clinical trial for its LOY-002 drug.

Designed for dogs 10 years or older and weighing at least 14 pounds, the STAY study will be the largest clinical study of its kind, conducted in partnership with more than 50 independent veterinary clinics and over 1,000 pet dogs, and is expected to last four years. For more information.

• Big moves, big news - Pet Resort Hospitality Group announced the acquisition of five leading pet resort brands in the US.

• Petco - The pet retailer launches private-label pet kitchenware products.

• Insects are hot - Cyns, a Brazilian biotech company just received investment in its seed round.

• Finding their audience - Wag! just acquired WoofWoofTV for an undisclosed amount.

• Bow Wow Wow - Propelled Brands has just acquired Camp Bow Wow, the popular doggy boarding franchise.

• Webbox - If you are in the UK, expect to see a lot of ads from the company as they recently invested £500k into brand awareness.

• Up the hill - Hill’s Pet Nutrition, which is owned by Colgate-Palmolive, saw net sales go up 15% in 2023.

• Butcher shop but for pets - The Australian company is looking to expand its pawprint into more stores across the country.

• 3 sharks are better than one - Ramon Van Meer was able to secure 250k for his company Genius Litter on Shark Tank.

• Papa Pawsome - The Indian pet care startup just raised $400k led by IAN.

Fish, we’ve all had one during our childhood, and we all inadvertently, and accidentally killed one (can’t be just me?). Put aside childhood fish murders, these underwater pets are considered by some as the most serene of pets, and in recent years have managed to carve out their place in pet lovers’ hearts amidst the dominance of dogs and cats. Alongside popular companions like parrots, hamsters, and snakes, fish have become a staple in many pet enthusiasts’ homes.

Quick history lesson: The Sumerians have been identified as the world’s earliest fishkeepers, dating back to 2500 B.C. Back in the day, fishkeeping served a practical purpose: food. Over time, however, ancient cultures started to appreciate fish not only for their nutritional value but for their beauty as well.

We apologize for all the fish puns in advance. 

Currently, the fish industry is making a splash like never before, tackling everything from pet fish sales to aquariums, accessories, and gourmet fish food. More folks are embracing the trend of adopting fish as their fin-tastic companions. Fishkeeping caters to a diverse crowd, attracting both aesthetic admirers of ornamental fish and families pursuing low-maintenance buddies.

The ornamental aquarium fish trade encompasses an astonishing diversity of animal species, with approximately 2,000 different species and millions of specimens being traded each year.

The 7 most popular fish in the US:

1. Neon Tetra

2. Platies

3. Zebra Danios

4. Sword Tails

5. Mollies

6. Clownfish

7. Green Chromis

7 rare and extremely expensive fish:

• Platinum Arowana

• Asian Arowana

• Peppermint Angelfish

• Masked Angelfish

• Bladefin Basslet

• Freshwater Polka Dot Stingray

• Flowerhorn Cichlid

The average fish is only a few dollars, however, there are fish (listed above) that can range from a few hundred dollars, all the way up to $600k.

In 2022, the global ornamental fish market size was valued at $5.88B, it is expected to expand at a compound annual growth rate (CAGR) of 8.5% from 2023 to 2030.

Globally, millions of households are diving into this underwater hobby. Consumers have a sea of choices, ranging from pint-sized desktop tanks to grand custom-built installations, catering to the whims and space constraints. Just like most pets, the majority of the money to be had in aquatic pet keeping is in the upkeep. Fish lovers have an assortment of accessories like filters, heaters, lighting systems, decorative elements, smart clean technologies, LED lighting systems, automatic feeders, computer-controlled water pumps, and more.

Singapore serves as the largest worldwide center and clearinghouse for the import, and export of both fresh and marine ornamental fish. While the European Union is the largest market for ornamental fish, the US is the single largest importer in the world. Although most fish kept in aquariums are from freshwater, the acquisition of marine ornamental fish has greatly increased, popularized by children's movies starring charismatic colorful fish and other creatures. Recent advances in fish husbandry and aquarium equipment technology have further facilitated the hobby.

The retail value for a kilo of coral reef fish destined for the aquarium trade may be worth $500 to $1,800.

Some key US players:

• AlgaeBarn LLC

• Tropical Fish International

• bioAquatiX

• Imperial Tropicals

• LiveAquaria

• AQUATIC INTERIORS UNLIMITED INC

• Ruinemans Aquarium Inc

• AQUA HUT LLC

• Florida Tropical Fish Direct

While in the past, aquariums were little bowls where your goldfish went to die, nowadays, there is a surge of hobbyists that are creating a real demand for high-quality setups. The hobby, which experienced a surge during the COVID era, is now settling into a new normal. Nano aquariums, especially for marine and freshwater, are gaining popularity, Desk-sized aquariums are in high demand, leading to increased interest in smaller fish and corals. Additionally, there's a growing trend in saltwater tanks. This evolving landscape offers businesses opportunities to cater to the changing dynamics of consumer interests and preferences within the aquarium industry.

The subreddit r/aquariums has 761k members and there are many other smaller communities dedicated to pet fish & aquariums. Just for reference that is in the 1% of subreddits ranked by size, it is currently the 821st largest subreddit on Reddit.

The expansive world of ornamental aquarium fish offers a plethora of choices for enthusiasts, encompassing fish, invertebrates, plants, and live rock. Amidst this vast array, the importance of considering the source and method of collection can be easily overlooked. While many species in the hobby are domesticated and bred on farms, there is an increasing demand for ornamental fish that are sourced responsibly and raised in healthy conditions.

This shift in consumer preferences is anticipated to be a key influencer in shaping the future dynamics of the ornamental fish market in the United States.

• Mayo - The cat stars in a Super Bowl ad with some Hollywood celebrity.

• Look up it’s a cat - Cats love being in high places, but why?

• Do cats have FOMO? - As with most things, it’s a bit more complicated.

• Respiratory map - The mystery illness has now reached almost 20 states with confirmed cases.

• Poop - 1,000 dogs came to the Javits Convention Center to have fun and well… poop

• Small, long-nosed dog - New research reveals which dogs live longer and which don’t.

• Best dentist ever - Nervous at the dentist? This hygienist found a genius way to help her patients calm down.

• Cats in prison - A new bill would allow inmates in Hawaii to foster cats until they are ready to be adopted.

• A true ride-or-die - After her Frenchie was snatched up in LA by thieves, this dog mom jumped onto a speeding car to try and save him.

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

The economic environment at the moment is tough. While inflation has settled and interest rates are starting to come down, we hear of constant volatility, lay-offs, and businesses really thinking about their "runway". With that in mind, you may have heard the term "bridge financing" being thrown around.

What is bridge financing? Also referred to as a "bridge loan" or a "bridge round". Effectively this is short-term financing being put in place until a longer-term solution has been implemented. Long-term could be a bigger raise or perhaps hitting profitability / getting payments that are due. Bridge finance can often take the form of equity or debt. Here are some considerations for both for you to consider:

• Debt - A lot of times, this would be quicker than an equity round (you don't have to negotiate a valuation). You may see investors wanting to put what is often referred to as a CLN -  a convertible loan. This loan is not traditional in the sense that it carries a mechanism to convert a loan to equity (providing additional incentives for investors). Make sure you understand any conditions to conversion and the actual conversion mechanism. Don't lose sight of the interest payments as well, whatever forms they may be in. 

• Equity - Likely to be something you do with your existing investors, as they would know the business and can move quickly. You may want to consider something like a SAFE here which can be executed quite quickly. If you have some kind of preferred shares the bridge will be positioned here to compensate investors for the increased risk and urgency.

As with all fund-raising activity, you will have to balance speed and certainty with terms. In the current climate, we believe building an 18-month runway is the way to go to minimize these urgent situations that take you away from building your business. Good luck!

• Fresh food for the win - Fresh pet food has been proven crucial for long-term health.

• Yumwoof - The company is set on creating some of the healthiest pet food around.

• Is oatmeal healthy for dogs? - According to some vets, not so much.

• We brew meat - Bond, the fermented protein producer has reached a significant milestone with Hill’s Pet Nutrition.

You reached the end, you deserve a treat 🍖

Be part of the pack - For more news, links, and entertainment follow us on social media (links below) and fur - ward this to your best human friend.

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Finally,

Why did one fish slap the other?

To snapper out of it.

See you next week!

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