Fidotek DOG Wellness Platform raising $500K followed by $5M Series A

Fidotek is raising a $500,000 SAFE to finalize MVP of the pet industry's first smart collar, food & water bowl system (patented) and integration with our proven cloud AI.

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Fidotek™ is in the $110B High Growth Pet Industry

  • It's a big data / AI company lead by a seasoned, startup-hardened team. 
  • In short, Fidotek acquires massive round-the-clock data on each dog, performs proprietary AI analytics and outputs actionable data that personalizes dog products and veterinary services tailored to each dog.

                  •--> See Fidotek's investor-view page at https://fidotek.com/technology/
                  •--> See Fidotek's Decks, Financial Summaries, Appendices in our Dropbox Document Vault here.

Fidotek does

  • Generate recurring revenue via consumer sales in the #5 CPG category, but we are NOT a CPG company.
  • Curate and personalize 40-50,000 pet products and services for each dog *our go-to-market business model, but we're more than a D2C NFX Marketplace. 
  • Use smart consumer electronics for data acquisition (think: Amazon Echo for dogs) but we're not just a Consumer Electronics company (any more than Amazon).
  • Acquire and analyze big data on dogs that we may ultimately license dog data to vets and pet pharma & food manufacturers, but we're more than a SaaS platform.

Fidotek Raise

Fidotek's Ideal Smart Money Investment Partners can recognize a disruptive model that's not easily duplicated, one that does not fit neatly into a single investment thesis. They will add some domain expertise, and tell us to show how we will deploy and disrupt the $55B US dog market, generate recurring revenue and create outsized equity/exit value.

 Fidotek™ is raising a $500,000 (SAFE) with follow-on $5.0M Series A in Q1 2022.

                         Total Raise: $500,000 (SAFE prior to $5M Series A)
               Minimum SAFE:  $50,000
                  Discount Rate:         75%
                 Valuation CAP: $15,000,000 of the total $5.5M raise 
        Current CAP Table: Founding team only

Fidotek Highlights

Invest in the jockey, not the horse.

Fidotek™ Corporation is managed by veteran serial entrepreneurs (multiple exits) and seasoned domain experts across operations, finance, pet technology, big data / AI, quantitative analytics, hardware, manufacturing, SaaS and marketing.

The Company is a digital transformation pioneer and a patent leader in the $110B US pet industry. There is presently no single company in the industry with a comparable technology or solution offering.

The Company believes that now is the opportune time for new investors to capitalize on its 5-year and $2.7 million technology investment foundation.
 
Here's why.
 
By 2017 the company had already sold 1,000 of its Consumer Electronics Show award-winning smart dog collars (GEN-1); it's been collecting and analyzing collar data ever since. Its artificial intelligence is now 97% accurate in remotely identifying pet behaviors and problems. Fidotek™ pivoted away from the old Hardware as a Service market sharing investor recognition that HaaS business models are largely unsustainable. 
 
Fidotek™ then committed to pioneering the most robust "Connected Dog Home" IoT network  to establish itself as the industry leader in dog big data acquisition & analysis (the "google" or "Facebook" industry data dominator) - delivering the first technology that can personalize the 10s of thousands of dog products and services for each individual dog.

And now, the Pet Industry is a huge, high growth market with pet food & treats being the #5 consumer packaged goods (CPG) category in the US.

Is the Dog Market that BIG?

  • 70 million American households have 100 million dogs - that's more than there are kids in the US!
  • They spend $55  billion on dog products and services annually and it’s growing like crazy (products up 7% / $40M over 2019).
  • Our Service Obtainable Market is around $500M representing about 600,000 dogs (about 0.6%).
  • Yea. It’s that BIG!

Why Fidotek? Why Now?

  • Market is flooded with more inexperienced dog owners than ever – pets it’s a freaking huge $110B, 7.4% CAGR high growth market!
  • Over 4 million new "Pandemic Pet" owners in 2020 will be pet customers for the next 10-15 years.
  •  An insane 50,000+ dog products and services, and dogs have no way to contribute to the buying decision - until Fidotek™!
  • Dogs can’t tell you when (or why) they don’t feel well- until Fidotek™!

There Must be Lots of Competition!

  • Some, but we know what the other companies offer and why they’re failing.
  •  Essentially – they suck at providing useful, actionable information to dog owners, vets, and pet product and service vendors.
  • Their antiquated business models and their technology have significant  limitations.
  • We have all the comparison charts that VERIFY all of this – we just can't upload them here.
Sustainable Differentiator: In order for Fidotek to deliver a DOG DATA driven product and service recommendation engine equivalent to Amazon's Human Data recommendation engine, three points of data acquisition are required: (1) collar activity data, (2) food & nutrition IoT devices, and (3) water consumption IoT devices. Fidotek intends to be the first to integrate these data into a deliverable platform (on which we have more patents). No other company that we know of has Fidotek's required 3-data sources.

Value Proposition

  • Amazon attributes 35% of its online revenue to its Recommendation Engine. However, that otherwise spectacular technology fails miserably in recommending dog products and Amazon lost ground to Chewy.com to the tune of $3 BILLION.
  • Conversely,  in 2020, Chewy spent $750,000,000 to acquire 5 million new customers by running a Very Costly customer service department. Chewy's customer acquisition cost (CAC) was a whopping $150.00 per customer!
Fidotek™ believes that its Dog behavior Based Recommendation Engine can reduce customer acquisition costs to under $25.00 per customer while generating Customer Lifetime Value of over $800, an LTV/CAC ratio that may approach an industry outsized 32:1 (although a 20:1 would be spectacular).

Fidotek Leadership

      CEO: Andy Gibbs LinkedIn
      CFO: Ian Hochberg LinkedIn
      VP Technology: Alexandre Delille LinkedIn
      Chief Scientist: Suranjan De Ph.D. Linkedin

  • Highly experienced multiple start-ups, bruises and scars, and a couple of exits.
  • World-class IoT product developer.
  • Fortune 500 C-level operations experience.
  • Credentialed data scientists.
  • Serious Intellectual Property know-how.
  • A seasoned numbers guy.
  • Proven digital marketing chops.
  • Great chemistry - working together for ages.
  • Strong outside support network.

Use of Funds ($500,000 Total)

  • Electronics development: load sensors & data recording      $105,000 (V)
  • Hardware, firmware, data acquisition                                                  $75,000 (L)
  • Bowl data integration with collar data (machine learning)      $50,000 (M)
  • Industrial design, 3d printing, pre-tooling engineering           $100,000 (V)
  • OPEX: admin, patent & legal, prep for $5M Series A                $170,000 (N)
        Notes: 
  1. Development of the pet bowl contents measurement & data transmission to a smartphone app is rated No (N), Very Low (V), LOW (L), and Moderate (M) risk. Bluetooth connected food bowl weighing technology has been proven for many years, and is available at retail for under $5.00 (De-risked Proof here)
  2. Industrial Design & Engineering risk is rated LOW since the GEN-1 design has already been 3D printed and patented. (Here, here and here)
  3. Legal fees include closing of this SAFE transaction and patent legal fees for continued patent prosecution.
  4. Deeply detailed assumption-driven financials are available upon request.

Fidotek Traction: $2.7M in Tech & Patents

Fidotek's current smart collar (GEN-1) and cloud AI technology is the result of investing $2.7M over 5 years of development and testing on over 1,000 dogs. The company is 80% complete on development of GEN-2 of its Smart Dog Collar with added functionality.

Fidotek believes that it is a leading (if not the leading) intellectual property pioneer in dog data, dog health, and dog data acquisition products. A short list of granted patents and applications follow (publicly available information).
Granted & Pending
  • Pet Feeding System; Pat No: US 9,928,511
  • Animal Food and Water Bowl System; Pat No: US 10,674,702
  • Pet Feeding System; Patent Number: US 10,115,110
  • Combined Pet Food and Water Bowl Elevated Base; Pat No: USD 761,494 
  • Animal Nutrition System and Method; Pat No: US 10,506,798
  • Animal Food and Water Bowl System; Pub No: 20200305387
  • Animal Nutrition System and Method; Pub No: 20200120901
  • Animal Nutrition System and Method; Pub No: 20180235183
  • Pet Feeding Control System; Pub No: 20180228128
  • Pet Feeding System; Pub No: 20180218373
  • Pet Food Feeding System; Pub No: 20180168126
  • Pet Feeding System; Pub No: 20170330194
  • Animal Food and Water Bowl System; Pub No: 20160192619
  • Multiple Continuing Applications: To Be Filed
THE INFORMATION PRESENTED HEREIN DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY SECURITIES WHICH CAN ONLY BE MADE TO QUALIFIED INVESTORS PURSUANT TO AND AS DESCRIBED IN A CONFIDENTIAL SUBSCRIPTION DOCUMENT.

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