A Chorley-based startup using anti-fraud technology to combat illegal and unethical practices within the pet sector has closed a six-figure angel investment round.
Petproov has received the final funding from serial entrepreneur and business consultant James Butcher, who is also one of Lancashire’s Fhunded Angels – a community of private investors looking specifically for early-stage and high growth investment opportunities in the county.
His investment is the first to come through the Fhunded Angels cohort since the Lancashire County Council’s initiative was launched earlier this year.
The company has developed a range of digital tools which identify potential pet scams, including non-existent animals being listed on websites, pets being sold with undisclosed health problems, misleading descriptions of breeds and falsified pedigree histories.
Its multi-layered vetting system contains several verification processes such as government-grade ID checks, biometric security and financial background analysis, which are cross-referenced to generate a risk rating of the pet seller.
By using the PetProov app, customers are able to access these risk ratings and make an informed decision before moving forward with any purchase.
Petproov’s AI-driven technology can further be utilised by breeders and pet listing sites to identify potentially fraudulent owners, while animal shelters can apply the same checks to screen-out unsuitable adopters.
The firm has already brokered commercial partnerships with several leading pet business partners since it was founded in late 2023, including Beco, Napo, Scooch and Maven.
It is set to use the angel investment to meet demand for anti-fraud interventions across the UK’s pet sector, as well as speed up the process of rolling out its service.
“Despite securing investment from several angels last year, we were still seeking additional funding to help us take PetProov to the next level,” said Garry Clarke, PetProov co-founder and CPO.
“I also really wanted to keep the business rooted in Lancashire, so I contacted Chorley Council to see if there were any regional support initiatives for startups seeking finance.
“They introduced me to Rory Southworth, from Lancashire County Council’s Fhunded programme, who helped get our proposition in front of the Fhunded Angels, including James. He immediately grasped the magnitude of the problem we’re addressing, and quickly came on board with the remaining funds we were seeking.
“James’ investment provided the final commitment we needed to complete a six-figure round and begin scaling operations. With this funding, we can accelerate the roll-out of the PetProov service, helping us to empower more customers and breeders to tackle the issue of fraudsters and scammers operating throughout the pet market.”
Butcher added: “Fraudulent activities are massively on the rise within pet retail, but a lack of regulation means thousands of people are being scammed without any real recourse to the law.
“PetProov offers an effective and affordable solution to this problem, and with around one in three listings on pet websites believed to be fake or misleading, the growth potential for the service is immense.
“Both Garry and Kate (Margolis, co-founder) have previously worked in industries where online fraud is rife, and have proven expertise in the use of sophisticated technologies to combat the problem.
“That, combined with their passion and commitment to eradicating criminal behaviour and unethical practices from across the pet industry, and supporting animal welfare in the process, made my decision to invest very easy.
“In my view, what the Fhunded Angels programme is doing to actively connect founders with experienced entrepreneurs and investors is not only vital for young businesses like PetProov, but also good for the region’s economy as a whole.”