Mars-backed Leap Venture Studio wants pet startups that can prove their science 

Nearly a quarter of U.S. pet owners spent less on their animals last year, according to the American Pet Products Association (APPA), which found that 22% of owners cut back in 2025, a 10% increase on 2024 figures.

Overall spending still went up; APPA puts the U.S. pet industry at $158 billion USD last year and expects it to reach $165 billion USD in 2026.

Leap Venture Studio is hoping startups can help solve that problem. The pet care accelerator, run jointly by Mars Petcare, TAW Ventures and Michelson Found Animals, is accepting applications for its eleventh cohort until October 18. This year it’s looking for science-backed companies working on cats, older pets, dental health and allergies. 

Its last virtual information session is today, October 7, from 1:00 to 2:00 pm PT. 

“A smart world for pets looks like one that doesn’t require families to choose between the care their animal needs and what they can actually afford. We’re committing to scaling that kind of impact and look forward to meeting the founders bringing it to life,” said Phillip Kim, executive director at Michelson Philanthropies. 

Vet care is one of the biggest costs pet owners face, with Americans spending $41 billion USD on it in 2025 alone, more than on anything except food and treats. 

Vets are feeling the change, too. At the VMX conference in Orlando in January, John Volk of Brakke Consulting said prices outpaced inflation in 2025 while client visits dropped, and added that clinics are dealing with more owners who question the bill. 

Skipping an annual checkup might save money now, but for an older dog or cat, it often means problems aren’t caught until they cost far more to treat. 

Cats get less coverage 

APPA says 53 million U.S. households now have a cat, with much of the growth coming from Gen Z and millennial owners. 

Fewer of those cats are insured. According to the North American Pet Health Insurance Association, 2.29% of U.S. cats have coverage, compared with 5.99% of dogs; across all pets, coverage is below 5%. 

Premiums are also rising. Gross written premiums for U.S. pet insurance grew 20.8% last year to $5.2 billion, outpacing the number of new policies. As a result, the average cost of a policy is going up, too. 

This makes Leap’s focus on cats easy to understand. Cat ownership is growing quickly, but they get less insurance coverage and less attention from investors than dogs do. 

Pet longevity is getting serious 

For years, pet longevity mostly meant supplements and marketing claims. The field is now attracting more scientific and regulatory attention. 

San Francisco-based Loyal is probably the best known example. In January, the FDA accepted the safety section of the application for LOY-002, its daily pill for senior dogs, representing the second of three major sections to clear after the efficacy section in 2025. The FDA is still reviewing manufacturing, however. 

If the drug is approved, it will be the first medicine the agency has cleared to extend lifespan in any species, human or animal.

Owners are also asking for more proof, however. Euromonitor’s latest pet care trends report, published on October 1, found that buyers worldwide are becoming more skeptical of health claims, with clinical evidence becoming one of the main ways premium health brands stand out. 

“We’re especially looking for startups using science-backed approaches to extend pet healthspan and improve quality of life,” said Rachel Sheppard, director of Ventures at Mars Petcare, of Leap Venture Studio’s Cohort 11. 

Jane Lauder, who founded TAW Ventures in honor of her Goldendoodle Thaddeus Alistair Warsh, stressed a strong product is only the starting point, while “building an enduring brand requires a broader vision.”

“We’re excited by founders who are developing products that deliver demonstrable value for pets, while also thinking thoughtfully about how to build consumer trust, create meaningful differentiation and establish the kind of relevance that can sustain a brand over time.”

Applying for Cohort 11 

Leap’s program lasts 12 weeks and runs in a hybrid format, so founders don’t need to relocate. Each startup has its own mentors and entrepreneurs-in-residence and gets help with day-to-day operations and marketing. 

Founders also get direct access to experts and investors at Mars Petcare, TAW Ventures and Michelson Found Animals. 

So far, Leap has invested in 63 companies across 10 cohorts in 17 markets. Cohort 10 received more than 300 applications from over 40 countries and, in response, the accelerator is moving back to a Spring schedule, starting March 30, 2027. 

One place is reserved for an Impact Seat, going to a company judged mainly on its positive impact on the pet care ecosystem, and non-profits can apply. Previous Impact Seat companies include myBalto Foundation, BestyBnB and Petcademy.

Applications for Cohort 11 and the Impact Seat close on October 18 at 11:59 PM PT.

Featured image: Leap Venture Studio via Youtube.

Disclosure: This article mentions a client of an Espacio portfolio company.