$300M Investment in Pet Care

Mars Petcare, in collaboration with Digitalis Ventures, has launched the ambitious Companion Fund II—a staggering $300 million venture capital initiative poised to transform the pet care industry. This bold move, tripling the initial commitment of its predecessor, marks a significant escalation in Mars’ strategy to drive pet care innovation forward.

A Financial Titan in Pet Care Innovation

Mars Petcare is not just a player in the pet care industry; it's a titan, with an estimated annual revenue of $18 billion from this sector alone. The introduction of Companion Fund II comes at a time when the pet care market is projected to soar to $202.6 billion by 2026. This fund positions Mars to fuel the transition of high-potential startups from nascent stages to robust growth phases, focusing particularly on direct-to-consumer (DTC) models and science-based ventures.

The launch of Companion Fund II reflects a proactive approach to a previously under-tapped startup ecosystem within the pet care industry. Despite the inherent risks—evidenced by a high failure rate among new ventures—Mars Petcare opts for a diversified investment strategy, supporting a wide array of startups rather than betting on a select few. This method underscores a profound understanding of the industry’s intricacies and a steadfast commitment to broad-based innovation.

Strategic Partnerships Bolster Startup Ecosystem

Mars Petcare’s investment strategy transcends mere financial support. By integrating startups into its vast ecosystem, Mars facilitates partnerships with leading specialists from Mars Veterinary Health and taps into advanced nutritional and health research.

Looking to the future, Mars Petcare’s backing of Companion Fund II is about more than financial growth—it’s about fostering sustainable industry practices. By supporting startups that innovate in sustainable pet care, Mars underscores its commitment to environmental stewardship, aligning with the values of today's eco-conscious consumers.

Conclusion: Shaping the Future of Pet Care

With the establishment of Companion Fund II, Mars Petcare is setting the stage not just for today’s innovations but for the future of the pet care industry. By leveraging its comprehensive industry knowledge, global resources, and a dedication to sustainable and scientific progress, Mars is poised to maintain its leadership role, driving transformative change and nurturing growth within this dynamic sector.

The focus on DTC brands within this strategy is particularly astute. These companies are celebrated for their agility, streamlined operations, and data-driven consumer interactions. By integrating more closely with DTC startups, Mars Petcare seeks to enhance its adaptability and consumer engagement—essential traits in today’s competitive market.

What do the experts say?

Igor Gourari

Co-Founder and CEO at LEV

Managing Director at Young America Capital

“The pet industry has been explosive over the past few years and that’s not stopping soon. We’re seeing increased demand from a growing population of pet parents for products and services that fit their lifestyle including more dog friendly places, better quality care, and increased access to information and guidance.

On the business side, the same is true. Currently with Lev, we have over 100+ pet related businesses looking to disrupt the market and reach their audiences in a new and innovative way through our advertising platform… the pet industry of the future is still to come and it looks bright!”