Felcana is the Digital Pet Health Platform that provides digital health services to pet owners and vets.
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | felcana.com |
| Sectors | Healthcare Digital Mixed B2B/B2C |
| Company number | 09521139 |
| Incorporation date | 1 Apr 2015 |
Idea
Introduction
Felcana is a pet care business which uses the latest digital technology to help predict, simplify and treat pet health problems. Our Digital Pet Health Platform helps owners and vets better care for their pets through the use of data and analytics to provide personalisation, convenience and value.
We have received £445,000 of grant funding from Innovate UK, institutional & angel investment and multiple design awards.
Developed by a world class team of veterinarians and engineers, Felcana is designed to be the best for you, your pet and your vet.
Intended impact
Digital technology is now disrupting pet care in line with other industries. Felcana’s vet founders are building a leading pet care company that uses digital technology to pioneer a new generation of care.
Connecting information between pets, pet owners and vets enables a step-change in how we predict, simplify, and treat pet health problems.
Felcana’s products and services provide personalisation, convenience and value to:
• PET OWNERS: earlier detection of health problems, 24-hour monitoring, convenient telemedicine consultations, and reduced costs of treatment through earlier intervention and closer monitoring.
• VETS: data to support diagnosis and monitor treatment. Telemedicine enables vets to work more efficiently by prioritising their caseload while also providing a convenient emergency out-of-hours service.
• PET CARE COMPANIES: understand their client base, differentiate from competitors and work with Felcana for direct marketing.
• PET INSURERS: help policy pricing and monitor claims.
Substantial accomplishments to date
PRODUCT
Over the past two years, we have been busy designing and refining our launch product, Felcana Go.
At the start of 2018, we began beta tests and are launching in the UK this October.
Our software analytics platform is up and running and our iOS app is available for download. Our supply chain is built and tooling is complete. Two patents are filed: one for our overall system and beacon technology; and one for range extending antenna technology.
We are ready to scale-up and deliver our vision to transform pet care using digital technology.
CUSTOMERS
Executed a successful Kickstarter campaign in 2016 and pre-sold over £25,000 of products.
Agreed two paid-for pilots with pet insurers commencing in Q3 2018. Advanced discussions are ongoing with other leading pet insurance companies, distributors and veterinary clinics in the UK and internationally.
TEAM
Recruited an expert team with broad capabilities, ranging from product design to data analytics. Our team have previously worked at companies such as Bain & Company, Dyson and TomTom.
AWARDS
Received £445,000 of grant funding from Innovate UK, through 4 grants since 2016. In 2017, Felcana was awarded a Spark Design Award, and was shortlisted for Innovate UK’s Design Innovation Award.
Selected to take part in three startup accelerator programmes: Design Council Spark; Techstars London 2017; and K-Startup Grand Challenge in South Korea. In August 2018, Felcana was identified as one of the top-10 pet startups to watch in Europe.
Monetisation strategy
We are focused on B2B sales through pet insurers, pharmaceutical companies and veterinary clinics. We also sell Felcana through B2C channels like our own website and will plan to soon be launching on eComm platforms beginning with Amazon.
Currently, Felcana makes money by selling connected devices. In the future, we plan to launch a subscription model for value added services like telemedicine while also providing pet and veterinary businesses access to Felcana data analytics tools under licence. Other potential revenue streams include direct marketing and licencing of our IP.
Our launch product, Felcana Go, has a RRP of £69.99. Our expertise in procurement and supply chain enables us to maintain a gross margin over 50% at low production volumes.
We plan to expand internationally using distribution and licence agreements. We are in discussions with a large Asia Pacific conglomerate who would like to launch Felcana; numerous distributors want to sell our products in their respective countries.
Use of proceeds
We are executing this funding round to continue scaling up business operations while also investing in new product development. Use of proceeds is detailed below:
NEW PRODUCT DEVELOPMENT:
• Continue to undertake research and development into the insights our data science team can generate.
• Support of research collaborations with academic institutions
• Build up larger production runs to support product demand and increase efficiencies of scale.
MARKETING AND SALES:
• Grow customer reach and brand awareness through increased marketing expenditure.
• Attend trade events such as the London Vet Show in November.
• Launch additional pilots with pet insurance companies and other industry players.
• Recruit a full-time Marketing Manager.
TEAM AND OPERATIONS:
• Recruit additional team members to support our continued growth.
• Support overhead costs.
Market
Target market
We focus on dogs and cats. Pet care is a lucrative market, demonstrating stable or accelerated growth across all major markets. Euromonitor estimates the global population of pet dogs and cats at 630M+ supporting a market that in 2016 was worth over $130 billion. The pet care market is predicted to grow at 5% CAGR until 2025, driven by increased willingness to spend on pets and growing pet ownership across developing nations like China.
By 2021, analysts forecast 2.8M pets will wear monitoring devices in Europe and North America, representing a 45% CAGR from 2017. Human health market proxies provide insight on the potential for digital technology in pet care. For example, the human telemedicine market is expected to reach $113B by 2025. Assuming the veterinary market is 20X smaller, we believe a market opportunity in excess of $5B remains.
The UK pet insurance market is the largest with over £1B of Gross Written Premiums in 2016 and growing at over 7% per annum. Other large pet insurance markets include the USA and the Nordics.
Characteristics of target market
Increasingly people treat their pets as family members. Driven by growth in single person households, a requirement for companionship and higher incomes, ‘humanisation of pets’ has been described as a great investment theme of the moment by market commentators.
‘Humanisation’ combined with easier application of technology has driven new digital products and services for pets. Connected smart devices, dog walking marketplaces and DNA testing businesses have recently emerged.
Veterinary clinics are undergoing a period of consolidation driven by institutional investor capital inflows and fewer exit options for retiring veterinary partners. Technology can improve operational efficiency with in new corporate chains.
The pet insurance market is fragmented. Many different pet insurance brands offer similar products. Average pet insurance claim payouts have grown 56% since 2010. Insurers can use Felcana’s technology to differentiate products and to optimise pricing/claims handling.
Marketing strategy
People have amazing bonds with their pets; ensuring Felcana’s marketing has an emotional edge is key to success. Our marketing strategy highlights Felcana’s focus on health, veterinary credibility and product superiority to reinforce the trust customers place in us.
Current marketing activities include:
• EXHIBITING AT MAJOR TRADE SHOWS: In 2018 we will have exhibited at Crufts, The Wearable Technology Show, VetForum, and the London Vet Show.
• DRIVING PR: We have achieved significant exposure across print and television including features in the Daily Telegraph, Sky TV & Channel 4.
• ENGAGING WITH SOCIAL MEDIA AND INFLUENCERS: Pets achieve tremendous reach on social media, relationships with influencers promotes adoption of products and services.
• BUILDING VETERINARY RECOMMENDATIONS: Work with our Felcana vets to build professional awareness.
• FEATURING ACROSS VETERINARY PUBLICATIONS: Collaborate with veterinary academia to develop research publications on clinical data insights.
Competition strategy
Competitors like Whistle and PitPat focus on activity monitoring without veterinary integration. Telemedicine providers like Fuzzy and ask.vet are focused on the US market.
Felcana differentiates by:
• FOCUSING ON HEALTH: Integrates digital products such as telemedicine, connected devices, and clinical records.
• BEING VETERINARY CREDIBLE: Founded by vets with the scientific background to know what pets, owners and vets need.
• BUILDING RESEARCH PARTNERSHIPS: Works with the Royal Veterinary College.
• DESIGNING SUPERIOR PRODUCTS: Designed with our customers, Felcana collects data, analyses that data in real time, and feeds back to constantly improve analytical insights.
• ENSURING EASE OF INTEGRATION: Built to easily integrate with all data sources, be that an open API from competitor devices or a veterinary practice management software system.
• MAKING OUR SOFTWARE SCALABLE: Written in Elixir, a software language, means we can quickly scale to millions of users.
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