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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“We fundamentally believe right now that just the way the market is, it’s harder than ever to start companies,” CEO Adam Struck said. “VCs are generally flocking to what they consider very high-quality opportunities, and the bar is much higher than it was last year to raise a seed round.”
Struck and his colleagues–CTO and co-founder of Resy Michael Montero and Tom Ryan, CEO of streaming at Paramount–wanted to create a company for risk-averse executives. In Struck’s view, these executives present the profiles they are looking for in a founder. In return, his company will offer them 50% of the startup.
Struck Studio's executive team, from left to right: CEO and co-founder Adam B. Struck, CTO and co-founder Michael Montero,, ChairmanTom Ryan, COO Andrew Green, and CDO (Chief Design Officer) Gordon Tindall.Photo courtesy of Struck Studio.
Struck said the Studio currently has five ideas in product development, and the team is constantly brainstorming future concepts. So far, three startup concepts have been green-lit. One is building solutions for home subscription rental services for digital nomads; another allows Web2 developers to interact with Web3 and blockchain technologies; and another will provide vet recommendations for pets.
Once a concept goes through the validation process and enters its product development stage, the time frame takes eight weeks to complete. During this period, Struck and his team will turn to their “founder funnel,” a vetted list of candidates will be added to its network and organized based on what sector they come from.
“You kind of have to be recruiting for founders even before you know which idea is ultimately going to be spun out,” Struck said.
While the company is based in Santa Monica, Struck said they are not limiting their pool of applicants to those that live here.
Struck’s team of 19 is currently distributed across the U.S. He claims they have put together a team like the Avengers because he believes his colleagues' combined experiences are Struck Studio's superpower.
He also added that the Studio’s goal is finding signs of product market fit. Once the ideal customer profile and buyer persona are identified, Struck said there is an excellent opportunity to go to vetted founders and offer to take the reins of the startup.
“We are huge supporters of the L.A. ecosystem. And we have a natural bias for building companies in L.A.,” Struck told dot.LA, “but if we find an incredible founder and they're not in L.A., we're still gonna go with that because we think that gives the company the best chance of success.”
This story has been updated to correct Struck Studio Chairman Tom Ryan's title at Paramount.
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