Mars pivots to pet tech via venture funds after 2017 antitrust warning

Before 2017, Mars was best known for its confectionery brands such as Snickers and M&M’s, but owned a large veterinary clinic network that drew antitrust scrutiny. An FTC order required Mars to divest 12 clinics to proceed with its $9.1 billion acquisition of VCA animal hospitals, highlighting a conflict between its candy and pet‑care businesses.

In response, Mars Petcare leadership launched Leap Venture Studio in 2018 together with Michelson Found Animals and R/GA Ventures, and set up the $100 million Companion Fund. These vehicles target early‑stage pet‑tech startups in areas like nutrition, telehealth, and diagnostic kits, leveraging Mars’ existing pet‑care infrastructure.

By 2023 the initiative had made 21 investments totaling over $92 million, with a portfolio of about 50 companies including PetPlate, MySimplePetLab and Scout Bio. The move coincided with a surge in pet‑tech funding—global venture capital in the sector rose 156% from 2020 to 2021 to $1.7 billion—showing Mars’ early bet paid off.

Mars built a pet‑tech investment platform that has deployed over $92 million in 21 deals, backing 50 startups and strengthening its role as top pet‑food maker.

Regulatory pressure from the FTC antitrust warning limited Mars’ ability to expand its veterinary clinic business through M&A.

The pet‑care market was experiencing rapid growth, especially in digital health and nutrition, offering an attractive adjacent opportunity.

Mars already owned extensive pet‑care assets (vet hospitals, food brands, research institutes), giving it an unfair advantage to identify and support promising startups.

When regulatory limits block core acquisitions, corporate venture funds in adjacent high‑growth areas can diversify revenue, cut risk, spur innovation, and keep the parent brand’s focus.

Since the launch of its venture arms, Mars has continued to expand its pet‑tech investments, follow‑on funding for portfolio companies, and integrate successful innovations into its Mars Petcare division. The initiative has helped Mars diversify beyond confectionery, reduce reliance on legacy candy sales, and position itself as a leader in the fast‑growing pet‑tech landscape, even as overall venture funding contracted in other sectors during 2022‑2023.