COVID was best for Kitty as pet insurance apps boomed – businesstraverse.com

Technology proved to be a boon for pets during the pandemic. Without direct access to vets, pet owners turned to mobile apps to track their pets’ health, often through educational content, and in some cases linked to insurance companies. The behavior has lit up the VC world as startups roll out these relatively simple ups that turn out to be big money spinners when this insurance angle is confirmed.

This is why pet app and insurance company Lass today closed a Series A round of €11 million led by Felix Capital. Existing investors Inventure and Passion Capital also participated, as well as prominent angels such as Josefin Landgård (co-founder KRY & Mantle), Fredrik & Caroline Hjelm (VOI siblings) and Karl-Johan Persson (chairman of H&M). The proceeds will be used to scale up the company outside of its home base of Sweden.

About seven in ten pet parents take their pet’s physical and mental health more seriously than their own, so Lassie’s pitch is that not only does it cut vet costs, but it also prevents injuries from occurring in the first place. Pet owners are then rewarded with lower insurance prices when they take courses on proper pet care.

Lassie co-founder and CEO Hedda Båverud Olsson said in a statement: “We are seeing a major shift as people begin to see their insurance as something that can help prevent disease. We are now looking to bring more products to market and improve our preventive pet insurance outside Sweden.”

Susan Lin, Partner at Felix Capital added: “Over the past decade we have seen an ongoing shift in modern family structures and attitudes towards pets as an increasingly critical member of the family. Together with a huge interest and commitment to preventive health and wellness, these trends have only been accelerated by COVID-19.”

Lassie’s biggest current competitors are Bought by Many (ManyPets) and Dalma.

Olsson told me, “We are all transforming Pet Insurance to become more digital, empathetic and seamless. What makes Lassie (and our blue ocean strategy) very unique is our preventive business model…. We are on a mission to become a central platform for pet care and we have already established a large database on pet health, enabling us to make market-leading discoveries about preventive health.”