The Challenge Facing Pet Tech Companies and the Boom in the Pet Market

The pet tech ecosystem has evolved from a niche market into a major investment player. According to reports, pet tech is projected to generate US$188 billion by 2027. This growth is closely tied to the trend of “humanization,” where pet owners are increasingly willing to invest in their pets’ well-being.

However, building a unicorn in this sector is no longer just about launching apps, but about solving infrastructure problems, navigating ethical boundaries, and devising highly calculated expansion strategies.

For Ayaz Ahmadov, founder and CEO of Dosty, much of the industry is designing its products based on a flawed premise, as they assume that pet care only kicks in when the animal gets sick. This approach, which optimizes platforms for “moments of panic,” leaves a huge gap in utility.

Instead, Ahmadov told Contxto that Dostr focuses on “moving from event-based utility to a continuous care infrastructure”. This means the product must accompany the pet through all stages of its life, across providers, and across geographic locations. By anchoring every interaction—such as feeding habits, behavioral changes, and routines—to a persistent pet identity, the system learns and adapts even during calm, healthy years.

This approach requires rethinking metrics that other startups have already used, such as time spent on the app. “We’re not competing with TikTok. We’re competing with uncertainty,” says Ahmadov. In pet health, excessive time spent on an app is often a sign of confusion; if a user opens the platform, resolves a critical issue in two minutes, and exits, that represents a resounding success, says the CEO.

As he explains, the most valuable startups don’t create addictive loops, but rather “layers of trust” that allow users to demonstrate their responsibility, such as showing a vaccination history or keeping track of vet appointments.

More than 56% of the world’s population has at least one pet, representing an opportunity to build communities of pet owners. After redesigning its community section, Dosty realized that users seek shared experiences to validate their questions. Therefore, discussions must be strictly tied to the real-world context (breed, age, symptoms), valuing the moment when one user brings peace of mind to another more than the amount of time spent scrolling.

The challenge of raising capital

This entire product vision must be backed by a flawless business strategy if the goal is to attract major investment funds. Rachel Sheppard, Ventures Director at Leap Venture Studio, receives a growing volume of applications annually from regions such as Latin America and South Asia, and her advice to international founders is clear: “Don’t obsess over the U.S. market from day one,” she explains.

The most common and destructive mistake Sheppard observes is launching products in massive markets simply because they are the largest, assuming this will grant a competitive advantage. “Large markets are also expensive markets, and they can substantially increase your monthly burn rate,” the investor warns. Taking the leap without understanding the dynamics of that market often results in an extremely costly trial-and-error process.

Instead, the recommendation is to master the local market first. This allows entrepreneurs to refine their channel strategy, understand the nuances of consumer behavior, and sense fluctuations in economic optimism or uncertainty within their own community.

Don’t Overuse AI

The popularity of artificial intelligence adds new ways to create pet-focused solutions. While many founders use AI to simulate medical authority and offer diagnoses, Ahmadov warns that this erodes trust in the long run. Regulation is a necessary design constraint; therefore, the technology must strictly separate educational guidance from clinical diagnosis.

“At Dosty, AI organizes symptoms, suggests next steps, and clearly indicates its uncertainty. By staying within its lane, the platform becomes a preclinical ally to veterinarians rather than a competitive threat,” says the founder.

Added to this is information management. Data portability isn’t just an export button; it’s an ethical responsibility for continuity of care. If platforms block data export to retain customers, they aren’t building loyalty—they’re engineering dependency.

The pet must be at the center of data ownership, allowing interoperability to fuel the entire ecosystem (clinics, insurance) without forcing owners to start from scratch if they switch providers. “Pets live 10 to 15 years. Products come and go. The data should outlive the product,” he explains.

Ultimately, the golden rule for venture capital is honesty. Investors look for founders who can communicate the value of their product. If it’s an emerging or smaller market, they don’t demand astronomical figures right away, but they do require tangible proof that there is consumer demand and acceptance. Showcasing a team with diverse skills, a shared vision, and a solid business model that charts a scalable path to profitability will always be the ultimate argument for securing funding.