49% of Americans added a pet to their family in the last year. This growth in demand has led to surging demand for animal hospitals, vets, and groomers. Modern Animal is a membership veterinary care platform that covers in-pet unlimited exams and 24/7 telecare, all for a nominal $100/pet/year. Treatments, diagnostics, vaccinations, and prescriptions are additional charges. The company opened its flagship clinic in West Hollywood last April that looks more like a high-end spa than a typical vet’s office last April. Modern Animal plans to open additional locations in Pasadena, Studio City, and Playa Vista this year to serve more local pet owners.
LA TechWatch caught up with CEO and Cofounder Steven Eidelman to learn more about the experience of launching during the peak of the pandemic, the company’s future plans, recent funding, which brings the total funding raised to $89M, and much, much more.
Who were your investors and how much did you raise?
We just announced $75.5M in new funding over the past year. A $35.5M Series A led by True Ventures and Addition and a $40M Series B led by Founders Fund, who also led the company’s Seed round in 2019. All three firms plus existing investor Upfront Ventures participated in both rounds.
Tell us about your product or service.
Modern Animal is a new kind of veterinary experience. Our mission is to better the lives of animals by building a place that’s better for all of us who love them. We have warm inviting clinics, an easy-to-use app, and 24/7 virtual care, all wrapped in a membership that eliminates exam fees and gives pet owners access to all of our future locations and services.
What inspired the start of Modern Animal?
As a pet owner and former founder in the pet space, I observed countless pain points for both pet owners and most importantly the veterinarians who serve them. We created Modern Animal to build a new model from the ground up focused on intentional design, leveraging technology, and a focus on the human experience of both accessing and delivering care.
How is it different?
Quite literally everything. The industry has not evolved in decades. The technology is archaic, the physical spaces are outdated, and the experience is an afterthought. We prioritize transparency and accessibility when designing our solutions – whether the clinic itself or our digital platform that supports members and our entire team both in the clinic and virtually.
What market you are targeting and how big is it?
Pet ownership has skyrocketed during the COVID-19 pandemic, with 76% of millennials now owning a pet and nearly half (49%) of Americans adding a pet to their family in the last year. Our numbers match this, with the vast majority of our clientele being between the ages of 25- and 45-years-old.
What’s your business model?
Modern Animal is a membership-based model that charges a fee of $100/pet/year. This covers exam fees and 24/7 access to Virtual Care (telemedicine). Vaccinations, diagnostics, treatments, procedures, and prescriptions are separate.
How has COVID-19 impacted the business??
The tremendous increase in pet ownership during the pandemic has resulted in a massive influx of demand for veterinary services, while clinics everywhere find themselves at capacity. We are not creating new veterinarians or technicians at a rate fast enough to keep up with this demand, so it is more important than ever to work to retain our veterinary workers by building a better model.
What was the funding process like?
We have had a steady stream of inbound interest since starting the company and decided to speak to a few firms after seeing early results from our first clinic in West Hollywood. We thought True Ventures and Addition would be uniquely good fits for the business based on their past investments in comparable businesses. True previously invested in Sweetgreen and Blue Bottle, and Addition invested in Warby Parker, Tend, and Ever/Body.
What are the biggest challenges that you faced while raising capital?
There was a great deal of uncertainty in the world when we launched in April 2020, and raising capital without meeting investors in person initially felt like it would be challenging.
What factors about your business led your investors to write the check?
We think what we’re building is pretty special, but it’s probably best to ask them directly.
What are the milestones you plan to achieve in the next six months?
We’re excited to start our expansion throughout the Great Los Angeles area over the next six months. As of now, we’re expanding to Pasadena, Studio City, and Playa Vista.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Raise capital when you don’t need it. In order to do that, you need to make sure 100% of your focus is on proving product-market fit when you still have capital.
Where do you see the company going now over the near term?
The focus and the plans have not changed. We are laser-focused on our mission, and in the near term, that means stellar execution on our upcoming clinic launches, while we continue to develop our technology platform.
What’s your favorite outdoor activity in LA?
Surfing with friends and biking with my son on the boardwalk.
