Dogdrop Raises $2.9 Million, Seeks to Be 'Gold Standard' in the Pet Startup World
Shaina Denny had just moved back to the United States from China when she decided she wanted a pup of her own. But as balancing work and home life became more difficult, she found herself looking for a dog service agency that allowed her to drop off her pet for just a few hours at a time— but couldn't find one.
One year later, Denny teamed up with COO and co-founder Greer Wilk in hopes of providing just such a service herself.
Dogdrop launched out of Science Inc., a startup studio in downtown Santa Monica that previously backed DogVacay, in January of 2020— right before the start of the COVID-19 pandemic.
The startup provides dog care with a twist: focusing dog care around convenience, flexibility and accessibility.
Denny said their dog service is unique in that it focuses on creating an industry "gold standard" for customer and pet experience.
"A high-quality member experience is something that humans expect from other services, they can also expect the same experience at a Dogdrop location," said Denny.
Dogdrop co-founders Greer Wilk (left) and Shaina Denny
At Dogdrop, pet owners can drop off their pups whenever they need to and pick them up whenever they are ready.
Dogdrop's customers pay an hourly rate or a monthly subscription. Costs start at $20 per month for three hours and range up to $800 per month for unlimited services.
The COVID-19 pandemic caused economic hardships for many startups and small businesses. Companies like Rover, one of Dogdrop's top competitors, were forced to lay off employees within weeks of the start of the pandemic. Rover laid off 41% of its workers at the end of 2020.
"If people are working from home and not traveling, the impact on our community of sitters and walkers is devastating," its CEO said in a statement last year.
But the American Pet Products Association reported that Americans spent almost $104 billion in 2020 on services such as grooming pet sitting and pet walking. This year the association estimates consumers will spend almost $110 billion on pet services — an increase of 5.7% over last year.
Denny said her company's biggest challenge was not economic, but keeping their employees safe and supporting them through rough times.
"As someone who adopted or got a dog during the pandemic— the demand was there. Especially because we focus on what we call 'quick stops.' People are able to drop their dog off for one to three hours at a time to get them exercising or to have a quiet Zoom call," Denny said. "The real challenge was just making sure our staff felt safe and supported during these times, especially with other difficulties going on in Los Angeles specifically."
Dogdrop announced a $2.9 million raise in late September. The Series A funding round was led by Fuel Capital and also included Mars PetCare, Muse Capital, Animal Capital, Gaingels, The Helm and Wag CEO Garrett Smallwood, the chief executive of one of their biggest competitors.
The company intends to use the new funding to expand its business reach and marketing efforts.
"The pet industry is really growing right now and a lot of investors are attracted to the pet industry space," Denny said. "If we can make it through and be successful during that time it shows investors we will continue to grow."
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Voyage cut eight people from its roughly 60-person workforce last week, co-founder and CEO Rev Reddy confirmed to dot.LA. Besides COO Dave Link, the cuts affected the company’s full-time sales department and some contractors, he said.
“It’s unfortunate to let people go—it’s never a fun thing,” Reddy said. “This is a multi-factor decision, but of course the macro[economic] climate affected [and] was an input in this decision.”
Reddy added that the company hopes the downsizing will be temporary and that Voyage plans to eventually hire more staff, specifically people in the Los Angeles area who have expertise in digital marketing. “We are prioritizing growth efficiency over growth at all costs,” he said.
Voyage CEO Rev Reddy.Credit: Voyage SMSThe ongoing economic downturn has not spared the tech and venture capital sectors, spooking investors into pulling back funding and prompting a wave of layoffs across the industry. It’s a sudden change of winds of Voyage, which earlier this year raised a $10 million funding round and acquired rival SMS marketing startup LiveRecover. Voyage’s text-based marketing strategy is plugged into ecommerce platforms such as Shopify and ZenDesk—but as consumers have cut their discretionary spending to cope with rising inflation, they’re spending less on ecommerce, indirectly hindering Voyage’s business.
Link, Voyage’s outgoing COO, previously worked for LiveRecover and joined the company in February after the acquisition.
“Technically, [Link] wasn’t even an employee—it was a trial,” Reddy noted. “The title was internal and it was very much contingent upon execution of results. And candidly speaking, those results were just not hit.”
Link could not immediately be reached for comment. Other former Voyage employees confirmed on LinkedIn that they were laid off and looking for new work.
While Voyage is not yet profitable, Reddy said he believes the company is on a “path to profitability in a reasonable timeframe.” Still, he acknowledged that the startup’s backers—which include former Airbnb executive James Beshara and venture firms RiverPark and Guild Capital—will be eager to see progress if Voyage is to “attract the capital we need” moving forward.
“Limited partners now look at their portfolio and their allocations, and since the public markets have dropped so much, they look overweight in venture,” York IE managing partner Joe Raczka, whose New Hampshire-based investment firm is among Voyage’s investors, told dot.LA. “So they course-correct a little bit in terms of where their allocations are going, so you see some hesitancy.”
York IE Managing Partner Joe Raczka.
Credit: York IEStill, Raczka said York IE plans to stick with Voyage. “I think the company has a massive market that they play in [and] they have a really strong product,” he said. “I remain very confident in the business.”
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💻 Meanwhile, in the tech, OpenAI just rolled out a game-changing update for ChatGPT. Plus and Enterprise users can now access real-time internet search, powered by Microsoft Bing, bringing ChatGPT's responses fully up-to-date. This means users can now ask about the latest news, hotspots, or recent LA startup announcements, and ChatGPT will pull in fresh, relevant answers directly from the web. Previously limited to information up to 2021, ChatGPT’s new browsing capabilities make it a valuable digital assistant for anyone needing real-time insights in fast-paced industries like tech and entertainment.
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🔍 The real-time search feature also includes “Browse with Bing,” allowing ChatGPT to source information from multiple sites for detailed answers to complex questions. Whether you’re exploring the latest venture capital trends in LA or curious about the best local spots, ChatGPT’s new browsing power helps you stay ahead with the latest info. This leap forward in AI functionality makes ChatGPT even more versatile and powerful for everyone, from business owners to everyday users.
From the Dodgers’ World Series win to OpenAI’s latest ChatGPT update, there’s a lot to celebrate in LA this week. Here’s to champions, innovation, and a city that’s always pushing boundaries. 🌆✨
🤝 Venture Deals
LA Companies
- Final Boss Sour, a Los Angeles-based gaming-themed snack company specializing in healthier sour snacks, has raised a $3M Seed funding round led by Science Inc. to expand its product offerings and operational capabilities. - learn more
LA Venture Funds
- Smash Capital led a $50M Series B round for Read AI, a productivity-focused AI company, bringing its total funding to $81M. The company offers a platform that enhances meeting efficiency through features like note-taking, summarization, and transcription. Additionally, Read AI introduced "Read AI for Gmail," a free Chrome extension that integrates information from various applications, reducing the need to switch between apps. The funds will be used to increase the company's headcount in engineering, data science, and business teams. - learn more
- Distributed Global participated in a $25M funding round for Nillion, a company that provides decentralized privacy solutions designed to secure sensitive data using advanced technologies like secure multi-party computation. - learn more
- Alexandria Venture Investments and Tachyon Ventures participated in a $115M Series A funding round for Axonis Therapeutics, a Boston-based biotechnology company developing innovative medicines targeting KCC2, a key mediator of brain inhibition, to treat neurological disorders. - learn more
- Act One Ventures participated in a $5M Seed funding round for Latii, a construction materials supply chain startup, to enhance its platform that connects contractors with suppliers, aiming to streamline procurement processes and reduce costs in the construction industry. - learn more
- F4 Fund participated in a $3M Seed funding round for Final Boss Sour, a Los Angeles-based gaming-themed snack company specializing in healthier sour snacks. - learn more
- SmartGateVC participated in a pre-seed funding round for Ritual Dental, a company revolutionizing dental care by integrating advanced technology and microbiome science to provide personalized, preventive treatments. - learn more
