Pet Connect Business is a digital management system for pet service providers. We make it easy for service providers to implement and manage branded websites, mobile apps, online bookings, client marketing, and more. More importantly, our customers can do all of this without any coding, no developer involvement, and without any technical experience required.
There are 300,000 service providers across the US ($500M TAM). This market consists of veterinarians, groomers, boarders, trainers, rescues & shelters, and more. 85% of this community are small businesses. Due to the complexities of using applications like Wix and Squarespace and costs of working with mobile developers, almost 50% of pet service providers don’t have a basic website. More alarming is that 99% of service providers don't have a branded mobile app even though over 70% of brand visits occur from a phone. This lack of innovation is having a profound impact on the pet industry.
Over the past three years, there’s been a major shift on the consumer side of the market as baby boomers are no longer the dominant pet parent group. Two out of three pet parents are now millennials or gen z. These digital natives demand instant information from pet service providers. They want to engage with these small businesses online. but they continue to run into poor digital experiences and as a result, stop booking services. Even though pet adoptions are at an all-time high, service visits per pet have plummeted. Health issues, pet abandonment, and euthanasia have skyrocketed. This lack of innovation is not only impacting small business economics, but it’s also negatively impacting our pets’ lives.
Pet Connect Business solves these problems by making it super easy for pet service providers to implement and manage their digital solutions. More importantly, through the Pet Connect Business Hub, pet service providers can manage their website and app content in a matter of seconds. Online bookings, client marketing, any of their content areas can be instantaneously updated in just a few simple clicks. Anyone with the skillset to create a social media post has the necessary skills to manage their digital solutions through Pet Connect Business.
And we’re not only a single operator solution. We have unique enterprise functionality for existing and growing brands that no other technology company offers the pet industry. For enterprises with many locations that carry the same brand flag, we have a franchise app that allows them to showcase all their locations within one app. It’s like the Starbucks app for a large pet service provider. For enterprises with many locations that each carry their own branding, which is common across the veterinary market, we offer a multi-brand solution that allows for many apps to be managed from a centralized source. We even offer enterprise messaging that allows for service corporations to distribute mass messaging from a single marketing post. Our enterprise solutions have already helped us win two multi-unit customer opportunities.
Pet Connect Business launched in March 2021 (https://www.prnewswire.com/news-releases/pet-connect-launches-new-client-engagement-platform-for-pet-service-providers-301253627.html). Pet Connect Business has acquired over 100 committed subscriptions to our platform in the last 200 days. Our client acquisition cost is $450 and our break-even month occurs in month 4. Over 70% of our customers purchase annual subscriptions, which guarantees profitability for most of our customer wins. We have a nice mixture of both independent and enterprise growth and have seen our digital marketing spend provide as high as 12:1 returns in some months. Our focus is to now add sales & marketing leadership to further optimize our digital advertising model, pursue additional sales channels, and to grow our enterprise customer base.
Pet Connect Business is seeking investors to close out our seed round of $750,000. We have raised $400,000 of that round through a combination of investor funds and independent angels. Our investors include the Maryland Department of Commerce, TEDCO, and three independent angels. We also raised an additional $100,000 grant through the Maryland-based RUBRIC program. We have $300,000 remaining in the round. Our convertible note terms are a $4M cap, 20% discount, 8% interest, with a Series A trigger.