Dutch Financial Model
Biotech/Pharma Startup Financials (Free Excel Download)
Dutch is a pet telehealth platform offering online vet consultations, prescription treatment plans, and D2C medication delivery for dogs and cats with chronic conditions.
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About this model
Dutch is a direct-to-consumer pet telehealth platform for chronic conditions in dogs and cats, initially anxiety and allergies. It combines asynchronous and live veterinary consultations, treatment plans, monthly prescription or OTC delivery, unlimited follow-ups, and a proprietary EMR platform for messaging and pharmacy workflows.
Subscriptions start at $39 per pet each month, with medication orders adding revenue. The company expects later revenue from teletriage, private-label OTC products, pharmacy partnerships, pet food, insurance, and EMR white-label licences; these were future plans rather than proven lines at the August 2021 deck date.
One month after launch, Dutch had raised quiz completion eightfold and purchase conversion 40%, with a $48.55 average order value. It was live in eight states and targeting 32 by December. The model should build pet members, subscriptions, prescriptions, refills, vet capacity, marketing cost, product margin, and retention.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
About Dutch
dutch.com
How to build a detailed financial model for Dutch
A complete walkthrough of the business, drivers, and assumptions behind the downloadable Dutch model - distilled from its pitch deck and publicly available information.
Product & value proposition
- Online vet consultations (async + live) replacing in-person visits.
- Vet-prescribed treatment plans for chronic conditions, initially anxiety and allergies (itch/flea/dermatology).
- D2C Rx and OTC medication shipped monthly; no pharmacy trip required.
- Unlimited telehealth follow-ups included in plan for behavior modification and medication adjustments.
- Proprietary homegrown EMR platform enabling asynchronous/live messaging, pharmacy agnosticism, controlled Rx prescribing, and future white-label licensing.
- Subscription starts at $39/mo.
Market
- $109B will be spent on pets in 2021.
- 1 in 5 American households acquired a pet between March 2020 and May 2021.
- 2 in 3 households currently own a pet.
- Millennials spend 2x the average annually on pets.
- 100MM dogs and 85MM cats in the US.
- Only 2% of pets have insurance (vs. 92% of humans) - pure cash-pay pharmacy market.
- Pet insurance market: $2B in 2020, flagged as 2023 expansion opportunity.
- Palliative care for cancer addressable in ~97M pets; arthritis affects ~20% of all dogs; urinary incontinence affects ~20% of spayed cats.
Revenue model
- Subscription plan starting at $39/mo per pet covering consultations and follow-ups.
- D2C Rx and OTC medications shipped monthly (prescription fulfillment revenue layer on top of subscription).
- Revenue recognized per subscription; medication revenue is incremental per order.
- Future revenue streams identified: on-demand teletriage (2022), private-label OTC (2023), pharmacy partnerships (2023), custom pet food (2023), pet insurance products (2023).
- EMR platform white-label licensing flagged as future opportunity.
- Channel: direct-to-consumer digital (quiz-to-purchase funnel, performance marketing).
Traction & metrics
- Launched July 1, 2021 - deck dated August 2021, so ~1 month live.
- Quiz completion up 8x (since initial launch / brand refresh).
- Purchase conversion up 40%.
- AOV: $48.55.
- Live in 8 states at deck date; expanding to 12 states by September 2021, 32 by December 2021.
- 60% of pets Dutch is treating have no vet or have not been seen for these conditions - capturing untapped demand.
- Seed round included Jimmy Fallon among investors; $5MM seed confirmed in press coverage.
- No revenue run-rate or customer count disclosed at time of deck (too early post-launch).
Unit economics
- Expected CAC: <$200.
- Expected LTV (Anxiety condition): $468.
- Expected LTV (Allergies condition): $250.
- Implied LTV:CAC ratio (Anxiety): >2.3x; (Allergies): >1.25x.
- Gross margin: 40% in 2021, expanding to 62% in 2022, 65% in 2023.
- Payback period: Not explicitly stated..
Competition / moat
Competitive landscape from deck [slide 8, 11]:
- Tele-vet triage only (TeleTails, Airvet, Vetster, Pawp - $19–$19.99/mo): offer quick advice but no diagnosis, no Rx, no VCPR - trap users in in-person cycle.
- D2C food/supplements (Ollie, The Farmer's Dog, Finn, Front of the Pack): no clinical/Rx capability.
- Online pharmacies (Chewy, 1-800-PetMeds): require external vet Rx; no VCPR ownership.
- Modern brick-and-mortar (Modern Animal, BondVet, Small Door): in-person only; geography-constrained.
Dutch's moat:
- Only end-to-end VCPR (Veterinary-Client-Patient Relationship) via telehealth - legal basis to prescribe.
- Proprietary EMR: async + live messaging, pharmacy agnostic, controlled Rx, future white-label.
- Pharmacy ownership roadmap: VCPR enables launching own pharmacy business and bespoke insurance products.
- Founder pedigree: Joe Spector, co-founder of Hims; team has built DTC telehealth Rx infrastructure before.
Team & funding ask / use of funds
- Founder/CEO: Joe Spector - co-founder of Hims; telehealth, D2C Rx, and veterinary network experience.
- Head of Marketing: Andrew Grant.
- Head of Customer Experience: Daniel Wilcox (ex-Ro, Bark).
- Branding partner: Red Antler.
- Headcount: 16 (2021) → 55 (2022) → 110 (2023).
- Raising: $15MM Series A.
- Use of proceeds:
- Grow team to 32 by EOY 2022.
- 2022 performance marketing: $16MM.
- Expand to additional chronic conditions.
- Integrate new services (on-demand support).
- Expand coverage to 32 states.
- Note: Performance marketing budget ($16MM) exceeds the $15MM raise - implies additional revenue-funded or debt-funded marketing, or deck typo. Flag as open question.
Recommended financial model
- Archetype + why: DTC subscription + pharmacy P&L model. Dutch is a recurring-subscription business (monthly pet health plan) with a layered D2C Rx/OTC fulfillment revenue stream. The deck provides a P&L summary with subscription counts, revenue, and gross margin - this is the natural skeleton. Analogous to Hims/Ro model: subscription fee + medication revenue, both recurring but with different margin profiles.
- Forecast horizon & granularity: Monthly for 2021–2022 (growth phase; performance marketing spend is the primary lever); annual for 2023. Deck provides annual anchors for 3 years.
- Key drivers & assumptions:
| Driver | Value | Source |
|---|---|---|
| Subscription price | $39/mo | - |
| AOV (medication add-on per order) | $48.55 | - |
| Expected CAC | <$200 | - |
| Expected LTV - Anxiety | $468 | - |
| Expected LTV - Allergies | $250 | - |
| Total subscriptions EOY 2021 | 10,800 | - |
| Total subscriptions EOY 2022 | 25,700 | - |
| Total subscriptions EOY 2023 | 62,400 | - |
| Revenue 2021 | $1.3M | - |
| Revenue 2022 | $26.0M | - |
| Revenue 2023 | $75.0M | - |
| Gross margin 2021 | 40% | - |
| Gross margin 2022 | 62% | - |
| Gross margin 2023 | 65% | - |
| Performance marketing budget 2022 | $16MM | - |
| Headcount 2021 / 2022 / 2023 | 16 / 55 / 110 | - |
| Monthly churn rate | ~3–5%/mo | - |
| Revenue per sub / month | ~$39 subscription + variable Rx | - |
| Vet/pharmacy COGS (2021 → 2023 margin expansion) | 60% → 38% → 35% COGS | - |
| Average salary / fully-loaded cost per head | ~$120K–$150K fully loaded | - |
| States expansion cadence | 8 → 12 → 32 (2021) | - |
- Scenarios (Base / Bull / Bear - which variables flex):
- Base: Deck projections as anchor - 10,800 / 25,700 / 62,400 subs; gross margin expansion as stated.
- Bull: CAC <$150, churn <3%/mo, pharmacy margin ramp accelerates to 68% by 2023; additional conditions (arthritis, cancer palliation) launched on schedule.
- Bear: CAC hits $250+, churn 6–8%/mo (early-stage pet health subscription risk), pharmacy buildout delayed, state expansion slows below 32 states, performance marketing ROI deteriorates.
- Flex variables: CAC, monthly churn, avg. revenue per subscriber (Rx attach rate), gross margin ramp pace, state expansion speed.
- Required sheets / outputs:
- Assumptions - all drivers in one tab; CAC, churn, ARPU, margin inputs.
- Subscription cohort model - monthly new subscriber adds, churn, net subscriber count; drives recognized revenue.
- Revenue build - subscription revenue + Rx/OTC medication revenue (separate line); total revenue reconciling to deck P&L.
- P&L summary - revenue, COGS (vet network, pharmacy fulfillment), gross profit, S&M (performance marketing), R&D (EMR), G&A, EBITDA.
- Headcount plan - by function (clinical/vet, tech, marketing, ops, G&A); links to opex.
- Cash / runway - uses of $15MM Series A, burn rate, runway to next raise.
- Unit economics summary - CAC, LTV by condition, LTV:CAC, payback period.
- Scenarios tab - toggle Base / Bull / Bear; output sensitivity on revenue, burn, and runway.
Frequently asked
Is the Dutch financial model free?+
Yes. The Dutch model is a free Excel (.xlsx) download with live formulas. Sign up with your email and the workbook is yours to keep, review, and edit.
What's included in the model?+
A 5-year monthly forecast with P&L, cash flow and runway, valuation (exit multiple plus a DCF cross-check), MOIC/IRR returns, and unit economics, with live formulas throughout.
How was this model built?+
It was built from Dutch's pitch deck and publicly available information, then structured to investment-banking standards as a fully editable Excel model.
Can I change the assumptions?+
Yes. You can change assumptions and the live formulas will recalculate in the downloadable Excel model.
Have more financial modelling questions? Contact us
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