People love their pets, but anyone who has taken their beloved Fido or Felix to the veterinarian lately knows that medical costs can add up fast.
Trupanion is hoping that it can help alleviate some of the sticker shock at the vet’s office. And now the Seattle company has reeled in an extra $9 million in venture capital financing from Maveron and Highland Consumer Fund to help achieve that goal.
Total funding in the 11-year-old company — which employs 190 people in North America — stands at $37 million. It plans to use the cash to expand its national sales effort.
Trupanion’s service covers 90 percent of the costs associated with veterinary care, and does not penalize pet owners for multiple claims or aging pets.
Trupanion declined to disclose the total number of pets covered, but CEO Darryl Rawlings said that the company is growing five times faster than the overall industry. He also noted that Trupanion is now the second largest provider of pet insurance in North America.
“Trupanion has proven again and again their commitment to providing one simple, fair plan with the industry’s highest medical loss ratio,” said Ted Philip, Managing General Partner of the Highland Consumer Fund. “This results in the category’s happiest customers and fast, profitable growth.”
As a dog owner myself, I just ran the numbers for my own pet. Here’s how it breaks down for my 80-pound Flat-Coated Retriever, Henry.
Att 11-years-old, I’d pay $41.92 per month for Henry with a deductible of $685. The Trupanion Web site offers a handy deductible calculator, allowing the pet owner to see quotes change in real time by altering the deductible amount. For example, with a $150 deductible, I’d pay $67.53 per month for Henry. With a $1,000 deductible, I’d pay $31.62 per month.
In order to get a sense how the numbers change based on breed and age, I also ran the numbers for my dad’s two-year-old Boxer, Gunner.
At a $650 deductible, the cost would be $58.12 per month. For an extra $15.01 per month, one could also add hip dysplalsia and alternative medicine coverage.
Trupanion was founded in Canada in 1999, and expanded to the U.S. in 2008. Maveron — the venture capital firm led by investment banker Dan Levitan and Starbucks Chairman Howard Schultz — bankrolled the company at that time.
Trupanion marks the second pet-oriented startup bankrolled by Seattle venture capital firms (third, I guess, if you count the wackiness at Cheezburger Network). Earlier this month, Madrona announced that it is backing Rover.com, a Web site where pet owners can find nearby pet sitters.
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