U.S. homes have more pets than children.
And it’s pretty lopsided. If the American Pet Products Association is to be believed, about 70% of American households have at least one pet, while, per the last U.S. Census, only about 40% of homes include a child younger than 18.
“Pets have become family, and we’re absolutely going to continue moving in that direction,” said Emily Dong, founder and CEO of pet wellness plan provider Snout.
Dong has worked in the pet industry for more than a decade, and her previous company, Pawprint, was acquired in 2020. She founded Snout in 2023 to help solve a key problem in pet care—that vet care operates almost entirely on cash (or perhaps credit) at the time of service. In pet care, Dong said, there’s limited billing and insurance backstop.
“With inflation and private equity coming into the space, prices have gone up 40% over the last five years and people can’t afford basic things,” said Dong. “So, it’s terrifying to go to the vet. You don’t know what vaccines will cost, and you’re not going to get out of there for less than $300 to $500, even if nothing’s wrong.” Snout, to this end, focuses on covering preventative care, and effectively turns vet bills into memberships. Costs vary based on plan, but on average customers are paying $65 a month for Snout to help take care of vet costs upfront. Over time, customers pay Snout back. That’s why Snout raised both debt and equity. The idea: Debt funds that no-interest, no-credit-check financing marketplace, while equity funds company operations.
Snout has raised $10 million in Series A funding, led by Footwork, and $100 million in debt financing from Clear Haven Capital Management, the company has exclusively confirmed to Fortune. Other Series A backers include Bread and Butter Ventures, Pear, and Restive Ventures. For Footwork, Snout is a surprise—it’s the Mike Smith and Nikhil Basu Trivedi-founded VC firm’s first investment out of its recently-raised $225 million second fund. And there’s no AI in sight.
See you tomorrow,
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The post As vet bills jump 40% in recent years, startup Snout raises $110 million for its ‘membership’ model to defray costs appeared first on Fortune.
