The mobile game entrepreneurs invests millions in Dog Buddy, through their venture capital company Sweet Capital, to make life easier for dog owners.
The business idea is rather simple. It’s about connecting dog owners with daycare centers and dog hotels. Some people leave their dog when they go to work, others leave their dog when they go on vacation. Dog Buddy takes a 15 to 20 percent cut on the fee when people find daycare centers through its site.
Richard Setterwall founded the company in London, in the summer of 2013. The service is currently available in the U.K., Germany, France, Spain and Italy. Dog Buddy is launching in Stockholm this spring, and plans to grow throughout the country from there.
“Sweden is an attractive market for us. There are 40,000 dogs in Stockholm alone. Swedes in general spend a lot of money on their dogs and we also go on a lot of vacations. I have a lot of friends who are just waiting for Dog Buddy to be available here”, Richard Setterwall says, when we meet him in Stockholm.
Later today, Friday, Sweet Capital will announce that it has invested in Dog Buddy.
“We didn’t plan to do another venture capital round before summer but we chose to take them in as a strategic investor. They have so much experience, and they really understand what it means to be a startup because they’ve made that journey themselves”, Richard Setterwall says.
Sweet Capital was started by the founders of Sweden’s greatest mobile games success, King: Sebastian Knutsson, Thomas Hartwig, Patrik Stymne, Riccardo Zacconi and Lars Markegren. Sweet Capital usually make seed investments of up to $1.2 million (10 million SEK), but they can also participate in series A rounds of between $3-5 million.
Richard Setterwall does not want to comment on how much the King-founders have invested in Dog Buddy, but reveals that the company has raised around $4.7 million in total. The company has already raised just short of $3 million (25 million SEK), which indicates that Sweet Capitals investment is somewhere between $1.2 million and $1.7 million.
Several angel investors are investing alongside Sweet Capital. Among them are Sophia Bendz (former CMO at Spotify), Claes Dahlbäck (former CEO at Investor) and Vigor Carlund (former CEO at Kinnevik). Breakit has previously reported that Anders Böös and Fredrik Palmstierna have invested in Dog Buddy(article in Swedish) as well.
The company has grown a lot since Breakit first wrote about it. The number of daycare centers and hotels has doubled from 10,000 to 20,000, and both dog owners and the number of nights spent at dog hotels has surpassed 200,000. That implies revenues of between $6 and $12 million since the company was founded. Richard Setterwall declined to comment on the ocmpany’s financial situation.