Embark Veterinary Valued at $700M After $75M Series B Funding

Embark Veterinary Secures $75 Million to Advance Canine Health Through DNA Testing

Following a surge in pet adoptions, particularly during the COVID-19 pandemic, Embark Veterinary is focused on extending the lives of canine companions. The company offers DNA testing designed to identify and mitigate preventable diseases.

Significant Funding Round

The Boston-based dog genetics firm recently completed a Series B funding round, raising $75 million. This represents the largest Series B investment to date for a pet-focused startup.

SoftBank Vision Fund 2 spearheaded the investment, with participation from existing investors including F-Prime Capital, SV Angel, Slow Ventures, Freestyle Capital, and Third Kind Venture Capital.

Company Growth and Valuation

According to Crunchbase data, this new funding brings Embark’s total funding to $94.3 million since its inception in 2015.

The investment also establishes a post-money valuation of $700 million for Embark, as confirmed by founder and CEO Ryan Boyko in an interview with TechCrunch.

The Founder's Vision

Ryan Boyko’s lifelong passion for dogs, combined with his academic background in biology and evolution, fueled the creation of Embark. He observed the remarkable diversity within dog breeds – ranging from just a few pounds to over 200 – and sought to understand their evolutionary history.

“I realized that dogs offer a superior model for utilizing genetics to improve health compared to humans,” Boyko explained. “Their breeding patterns allow genetics to significantly influence both health outcomes and overall quality of life.”

Embark’s DNA Testing Services

Embark’s dog DNA test is available to consumers, breeders, and veterinarians for $199. It provides personalized care recommendations based on a dog’s unique genetic makeup.

The test analyzes over 350 breeds and 200 genetic health risks, alongside physical characteristics. It functions similarly to human DNA tests like 23andMe, revealing insights into breed composition, health predispositions, and ancestry.

Proactive Health Management

For instance, the test might reveal a predisposition to intervertebral disc disease, even in a currently healthy dog. This knowledge would prompt proactive weight management and limitations on jumping to minimize risk.

Another common genetic risk identified is Hyperuricosuria (HUU), a condition causing elevated uric acid levels that can lead to bladder stones. Dietary adjustments can mitigate this risk, preventing painful and costly treatments, according to Boyko.

Advanced Technology and Data

The test’s core technology utilizes proprietary genotyping, analyzing over 200,000 genetic markers. This represents twice the information offered by any other dog DNA test currently available.

This extensive analysis has enabled Embark to build the world’s largest database of canine health and biological information, facilitating new discoveries and providing deeper insights into health risks, traits, and breeds.

Future Growth and Expansion

Embark aims to become the industry standard for dog health management. The company experienced 235% growth between 2019 and 2020, and a fivefold increase in sales over the past two years.

The new funding will be allocated to strategic hiring and database expansion, with plans to add over 100 employees between 2021 and 2022.

A Booming Pet Industry

Boyko highlighted the substantial opportunity within the pet industry. U.S. spending on pets reached nearly $100 billion in 2020, a rise from $95.7 billion in 2019, as reported by the American Pet Products Association.

Increased Venture Capital Investment

Venture capital investment in U.S. pet-focused companies grew by 29.5% from 2019 to 2020, according to Crunchbase data.

Other pet startups also saw success in 2021, including Wagmo (pet insurance, $12.5 million), Fi (connected collar, $30 million), and Rover (preparing for a public offering via SPAC).

SoftBank’s Perspective

Lydia Jett, a partner at SoftBank Investment Advisers, shared that this was her firm’s first investment in the pet sector. She emphasized the growing consumer desire to enhance the quality of life for their pets.

Jett believes that Embark’s focus on DNA-based analytics represents the future of pet healthcare, marking a significant shift in the convergence of emotional bonds with pets and the ability to improve their well-being.

“This company is a catalyst for change,” she stated. “As a leading consumer investor, we’re observing a trend of consumers prioritizing and personalizing choices for their pets, and Embark aligns perfectly with this evolving landscape.”