KetoNatural Pet Foods

KetoNatural is aiming to disrupt the $24 billion U.S. pet food market.

The company has developed a new type of dog food that features the nutrition and benefits of a raw diet, with the convenience and affordability of ordinary kibble.

The pet food sector is experiencing enormous growth right now — as well as high levels of M&A:

In February 2018, for example, General Mills acquired Blue Buffalo, a pet food company, for $8 billion…

In April 2017, PetSmart acquired pet food e-commerce company Chewy.com for $3.3 billion…

And in 2014, Freshpet, a maker of premium pet food, went public on the NASDAQ.

With its line of premium "ketogenic" dry pet food, KetoNatural aims to be the next successful dog food brand.

According to KetoNatural, carbohydrates in food are wreaking havoc on the health of America’s pets.

80% of pet food is created via a process known as “extrusion,” resulting in a product that is often comprised of between 40% and 75% starchy carbohydrates.

The problem is, dogs have no nutritional need for carbohydrates. As a result, this excess intake of carbs leads to health issues including obesity, cancer, diabetes, and heart disease.

KetoNatural has created a solution to this problem. By creating a product that has a proprietary, high-collagen base, the company’s dog food is made up of only 5% to 10% digestible carbohydrates.

KetoNatural launched in April 2017. After raising $127,500, it began product testing in October 2017. The company soon received regulatory approval for two dog food formulations.

In November 2017, the company’s product, called “Ketona,” hit the market on Amazon.com, and on KetoNatural.com.

It costs the company between $1.75 to $2.25 per pound to make its product, while it sells its product for $3.50 and $5.95 per pound at retail.

With funds raised from this investment, KetoNatural will launch its Chicken and Salmon Recipes for Adult Dogs. The company will also scale marketing campaigns through Amazon and Chewy.com.

KetoNatural’s team has extensive experience in the pet industry:

Co-Founder and CEO Daniel Schulof wrote a book about the health dangers of pet food called “Dogs, Dog Food, and Dogma”…

And the company’s leaders previously grew KetoNatural’s “sister company,” Varsity Pets — an e-commerce dog toy company — to more than $1 million in annual revenues.

Team Background

Nathan Mostow - Co-Founder & COO

Before serving as KetoNatural’s Chief Operating Officer, Nathan served as a senior financial analyst for Merrill Lynch.

For seven years, he was as a Partner at Daniel’s company Varsity Pets.

In addition, he served as a financial consultant for AXA Advisors (CS: EPA), an insurance company.

He earned Bachelor’s degrees in Mathematics and Psychology from Emory University.

Daniel Schulof - Co-Founder & CEO

Daniel has extensive experience in the pet industry.

Prior to starting KetoNatural, he founded Varsity Pets, an e-commerce company focused on dog toys. Under his guidance, Varsity Pets grew to more than $1 million in annual revenues.

In addition, he previously served as an attorney for Kilpatrick Townsend & Stockton, an Atlanta-based law firm.

Daniel earned a Bachelor’s degree and JD from Emory University.

Michael D'Amico - Chief Financial Officer

Before working for KetoNatural, Michael was a Partner at Daniel’s e-commerce company, Varsity Pets.

In addition, he formerly served as Director of Great-West Retirement Services, a financial planning company.

For nearly two years, he served as a senior investment specialist for Janus Capital Group, a Colorado-based investment firm.

Michael earned a Bachelor’s degree in International Relations from Emory University and a Master’s in Finance from the University of Denver.

Co-Investors