Deal Details
Valuation: $5 million cap (the maximum valuation your shares will convert at)
Security: Convertible debt (a note that will convert into preferred shares)
Maximum amount to be raised: $1,000,000
Currently raised: $132,000 (as of 10/10/2016)
Minimum investment: $100
VetPronto offers on-demand veterinary service.
That’s right. Your pets can now take house calls from licensed veterinarians.
I believe VetPronto has the team, vision, and tenacity to turn this into a large and profitable business.
The company is currently operating in two cities, San Francisco and Los Angeles. It’s signed up more than 50 vets in California and has amassed 3,400 customers to date.
Growth has been solid at around 15% per month. Here’s a chart showing quarterly revenue growth.
I expect its growth rate will increase in the coming months as it adds new vet partners all across the country.
This is due to an improved business model that the company is adapting.
Under the old model, the company paid vets a flat fee of $125 per house call. VetPronto paid for setup costs, equipment, lab testing, etc. Then it kept the profit.
With the new model, VetPronto provides vets with customer leads and charges $75 per house call. The veterinarian gets to decide how much they charge for services beyond that.
The new model will focus more on providing software and other marketing tools for its veterinarian partners. VetPronto now plans to offer easy-to-use tools that help independent vets run their businesses without the overhead costs of running a brick-and-mortar business.
Bottom line: The new model should allow VetPronto to scale much more quickly.
Early retention has been impressive, with 40% of customers booking again within the first six months.
All-Star Team
VetPronto’s founders have the right experience and skills. Two of the three previously started RestEngine, which they sold to Twitter. Startup experience like this is a major positive. (The other founder is a veterinarian.)
As a testament to this team’s character, VetPronto is a graduate of the highly prestigious Y Combinator startup accelerator program. Every year more than 10,000 companies apply, and only 100 or so are accepted. Y Combinator is known for choosing startups with strong leadership. Fellow graduates include Reddit, Dropbox, Instacart and many more.
VetPronto is keeping costs low by using contract web developers as opposed to full-time engineers.
Our Call With the CEO
When VetPronto’s deal went live on Wefunder, I was already familiar with the company.
My friend Phil Nadel, who is a co-founder of Barbara Corcoran Venture Partners, invested in the company a while back.
So I asked Phil if he’s still bullish on the company. He is. Phil spoke highly of Joe Waltman, the CEO, and made an introduction for us.
Andy and I had a long discussion with Joe. We came away extremely impressed with him and his vision for growing the company.
Joe told us that vets who work with his company can make more than $1,000 a day. This is substantially more than vets can make working at a clinic.
For me, this is one of the true tests for an on-demand business. Is it better for the workers?
I’ve found that companies in this space that allow their partners to make more money, with more flexibility in their schedules, tend to do well.
I’ve seen this in my own portfolio companies, including UpCounsel, an on-demand legal services provider, and Soothe, which offers on-demand massage. Both offer a better option to professionals in their fields.
How You Can Help VetPronto
VetPronto is actively looking for veterinarians outside of the San Francisco Bay Area. If you know any vets who’d be interested in making additional income, please have them email care@vetpronto.com or visit vetpronto.com.
How to Invest
This deal is available for investment on Wefunder.com. We are very familiar with Wefunder and have known the founders for about three years. They’re professional and easy to work with.
So if you haven’t registered for a Wefunder account yet, click here.
Once you’re registered and logged in, click here to navigate to VetPronto’s page.
Then click the green “invest” button to the right. From there, you’ll be guided through the investment process.
Risks
This is an early-stage company valued at $5 million. Deals at this stage are high-risk, but higher-reward.
Of course, it is possible that a large market for in-home pet care will not materialize.
There is also a risk that the company won’t be able to raise enough capital to reach profitability.
Since this is an early-stage company, you should expect to hold these shares for years. Do not invest money you can’t afford to lose. Early-stage investing is about putting your money in high-quality companies, then being patient.
Reminder: We recommend spreading your investment across 10-plus early-stage companies. Building a big diverse portfolio over time will give you a better chance at hitting a home run.