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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- MuckerLab Accelerator Application is Live
MuckerLab Accelerator Application is Live
Santa Monica's Mucker Capital, which focuses on investing in high-growth startups based outside of Silicon Valley, is looking for startups to join its MuckerLab accelerator.
The program partners with 12 to 15 companies each year, working one-on-one with founders on a weekly basis providing hands-on support. Mucker invests between $100k to $200k with follow-on capital available. Founders do not have to be in Los Angeles and can work remotely.
Since its inception a decade ago, MuckerLab portfolio companies have gone on to raise more than $5 billion in outside funding since graduating. Standouts include Honey (raised $39M and later acquired by PayPal for $4B), ServiceTitan (raised a total $400M to date), and Emailage (raised $15M and later acquired by LexisNexis for $500M).
Applications are reviewed year-round, but the next set of applications is due September 25 and applicants are encouraged to apply early.
Omaze Sells Celebrity Meet-and-Greets for Charity. It Raised $30M
Omaze LogoOmaze, the online platform selling celebrity meet-and-greets, trips and prizes for charity, closed a $30 million Series B round by FirstMark Capital.
Founded in 2012, Omaze allows users to enter to win experiences with celebrities like Michelle Obama and Oprah, and prizes like a custom tiny home or a Lamborghini blessed and signed by Pope Francis.
The Culver City-based company works with the Charities Aid Foundation America to distribute funds and says it's raised over $130 million for over 350 charities. In two years, the company says, it has grown its revenue by 500%.
"We're grateful to close this round during a challenging year and fundraising environment," co-founder and CEO Matt Pohlson said in announcing the news Thursday. "These funds come at a critical inflection point for the company."
The raise follows a $12 million Series A round in 2018. With the funding, Omaze will continue to invest and scale its home and car categories. It'll also accelerate plans to expand internationally, beginning in Western Europe and Asia.
The announcement also includes two new board members, Celtics lead owner and co-founder of Causeway Media Partners Wyc Grousbeck and Penni Thow, former executive VP at SB Projects and the founder and CEO of Copper.
Additional investors of the funding round include Causeway Media Partners, BDMI, Tusk Ventures, Inherent Group, Gaingels, Penni Thow's Copper and talent manager Guy Oseary.
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“The L.A. ecosystem is really mature as far as a place to build technology companies, and more capital than ever is coming into L.A. to fund our companies as they grow and scale toward an IPO,” Rosen said, noting that Wonder already deploys more than 90% of its capital in Southern California-based ventures. “We still believe that the earliest stage is underfunded—pre-traction and pre-seed. That stage is the hardest time to raise and get elite investors, and that explicitly is what Wonder does.”
Rosen pointed to an eclectic group of more than 60 L.A.-based founders and tech executives who have invested in its latest fund, including those from current and former Wonder portfolio companies like Clutter, Tala, and Honey. Other investors from local startup success stories like Snap, GoodRx, and Dollar Shave Club also pitched in.
Fom left to right: Valentina Rodriguez, senior investor; Dustin Rosen, managing partner; and Taylor Bolhack, head of platform and community for Wonder Ventures.
Courtesy of Wonder Ventures
Among the first companies to be funded by the new vehicle is RealAppeal, a Santa Monica-based startup that finds savings in homeowners’ property tax assessment bills through an appeals process. Rosen said he filed his own appeal on the company’s website as its founders made their pitch to him on the phone. “I hope to save thousands of dollars,” he noted.
Among Wonder’s most successful investments to date has been Honey, the ecommerce rewards app that PayPal acquired for $4 billion in 2019. The VC’s initial early-stage investment in the Arts District-based startup returned an exit worth more than Wonder’s entire $5 million first fund, according to Rosen.
The firm’s largest portfolio holding today is WhatNot, the Marina del Rey-based livestream auction marketplace that raised more than $220 million in venture capital last year on the way to reaching a unicorn valuation of $1.5 billion. That investment has proven even more lucrative than its bet on Honey; Rosen noted that the current value of Wonder’s stake in WhatNot is “worth more than the entire [$15 million] second fund.”
In addition to launching the new fund, Wonder has made two new hires to help oversee its portfolio of nearly 80 companies. Valentina Rodriguez, formerly an analyst and trader with Morgan Stanley, has joined the venture firm as a senior investor, while Taylor Bolhack, previously with Santa Monica-based micromobility operator Bird, has been named head of platform and community.
Wonder Ventures isn’t the only L.A-based VC firm targeting local seed and pre-seed startups. After five years with San Francisco-based Crosslink Capital, investor Joe Guzel has launched a fintech-focused early-stage fund with McLain Southworth called Haven Ventures, Guzel told the LA Venture podcast this week.