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Scoop: Small Door Vet open to deal

Sep 28, 2023
Illustration of a pet carrier overflowing with money.

Illustration: Aïda Amer/Axios

Small Door Vet is working with Lincoln International on strategic options, including a possible sale, two sources familiar with the situation tell Axios.

Why it matters: Auctions for traditional vet platforms stalled out last year, but investors see promise in Small Door's strategy, one source says.

How it works: Small Door is a membership-based, tech-enabled veterinary chain, aiming to help customers and their pets get seen more quickly than they might at a traditional vet.

  • Small Door provides in-person routine and emergency animal care, as well as 24-hour telemedicine care via a mobile app.
  • Memberships cost $169 per pet, per year, according to the company's website.
  • The company has 12 clinics in New York, Washington D.C., and Boston — up from five last year.

What's happening: Small Door is having management meetings with prospective buyers ahead of collecting first-round bids, the sources say.

  • The New York-based company, which is not yet profitable, is being marketed on $70 million in pro-forma revenue.
  • Small Door could look at General Atlantic's acquisition of GoodVets as a possible comparable, the sources say. One source notes that deal yielded a $300 million price tag. (General Atlantic declined to comment.)

Catch up fast: Small Door raised a $40 million Series B last year, led by the chief investment officer of an unidentified publicly traded private equity firm.

  • C&S Family Capital and FS Investors also participated, alongside existing investors Toba Capital, Lerer Hippeau Ventures, Primary Venture Partners and TriplePoint Capital.
  • Small Door has grown solely through de novo clinic openings. CEO Josh Guttman told Axios last December the business was generating $10 million-plus in annual revenue, with five clinics open.

State of play: Tech-enabled veterinary companies have drawn significant investor interest in recent months, as pet owners look for more efficient care.

Small Door Vet and Lincoln did not return requests for comment.

Editor's note: The headline has been clarified to reflect that Small Door is working to raise financing, but not exclusively pursuing a sale.

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