A look at innovative financing options for veterinary practices

By Keith Loria

Healthcare financing becomes more challenging every year, especially for those in the veterinary field. Rising operational costs, inflation, and student debt are pushing many veterinarians to seek creative funding solutions to stay afloat. In fact, a recent survey reports that 60 percent of veterinary team members feel unsatisfied with their financial situations.¹

"Traditional loans often fall short for new veterinary practices due to high setup costs, slow ROI, and lenders' limited understanding of the sector," says Pernia Rogers, founder of Your Finance Travel Buddy, which provides financial advice through eBooks and online courses. "That's where alternative financing methods—like crowdfunding, grants, and impact investors—offer a much-needed solution, particularly for mission-driven or community-focused clinics."

This emerging trend offers an alternative to traditional lending methods, which often pose challenges for veterinary practices seeking to expand their services. As the industry navigates financial hurdles, these approaches are reshaping how veterinary care facilities are built and sustained, promising enhanced access and improved animal health care in communities nationwide.

Richard D. Armstrong III, senior advisor of Faith Investor Services, an advisory firm in St. Louis, Mo., says these funding methods can significantly reduce or eliminate the debt burden associated with accessing capital by lowering the annual and total interest charged. This will free up cash flow to be diverted toward additional investing, hiring, etc.

"While it's worthwhile to weigh all options, traditional methods included, the alternative routes can provide more affordable capital and increase community engagement through social mission alignment in ways that banks can't often offer," Armstrong says. "Grants are nice as they can improve working capital and debt-to-equity ratios and can help avoid complicated equity splits, which make the firm more attractive to potential buyers when planning for an exit."

Crowdfunding works

Austin Rulfs, founder of small business financial investor Zanda Wealth, says traditional lending is often restrictive and burdensome, with banks hesitant to back new ventures that lack long-term financial histories. So, it only makes sense to try these newer funding alternatives.

"Crowdfunding itself provides a method for access to a larger base of financial supporters, most notably those who have a strong emotional interest in the veterinary community," Rulfs says. "Animal owners and pet enthusiasts tend to be willing to support projects that promote the welfare of animals. It provides a special means to promote the practice to the community while still raising the necessary funds. With Kickstarter and GoFundMe, it is now a realistic goal to raise $50,000 or more with a well-written campaign."

Rogers notes crowdfunding can do more than raise capital; it can also build a loyal client base before the doors even open.

"Platforms like Crowdcube or Seedrs allow clinics to offer equity or perks in exchange for funding, and it's especially effective when the practice serves a defined local or underserved area," he says. "This method also enables practices to maintain ownership and avoid restrictive loan covenants."

GoFundMe is one of the best-known crowdfunding platforms, and many veterinarians have used it to raise money to open or expand their operations.
"GoFundMe makes it fast and easy for people to create fundraisers for causes they care about, including for clinics to rally support from the communities they serve," says Ese Esan, communications manager at GoFundMe. "We encourage GoFundMe organizers to be transparent and specific when sharing their stories. People want to know exactly how their support will help."

For example, Runaways Animal Rescue in Pasco, Fla., is fundraising to open an on-site veterinary clinic.

"Initially, our clinic will focus on providing spay and neuter services and general veterinary care for the animals in our rescue, but in the future, we plan to extend these services to support other rescue partners and then our community," says Genesah Duffy, chief financial officer of the rescue facility. "By having an on-site veterinary clinic, we can save more animals in need and reduce animal suffering by providing quicker access to medical care."

"We don't usually choose a platform like GoFundMe, but we wanted a platform that had a clear goal and could be shared among all the other platforms," says Danielle Giroux, Runaways Animal Rescue founder and CEO. "Our clinic provides medical care and surgery for the animals at our shelter. We also have a TNVR clinic where we do TNVR for 30-40 cats a week."

Additionally, Rustic Acres Wildcat Rescue, a facility in Providence, R.I., is currently raising funds on GoFundMe to finish construction for an on-site veterinary clinic, which will allow it to provide medical care to the wild and domestic cats at their sanctuary.

Adam Spencer, founder and president of Forest, Va.-based Furlanthropy, Inc., explains he started his charity-owned crowdfunding platform after realizing that more than 2,000 other crowdfunding platforms were all for-profit.

While most of the crowdfunding has gone towards pets that need care, veterinarians can expand their clinics or purchase expensive medical equipment.

"As long as there's a charitable arm to the business, Furlanthropy can benefit a clinic," Spencer says.

Landing investors

Impact investors, Rogers says, are increasingly drawn to veterinary services that improve animal welfare, increase rural access to care or offer sustainable, low-cost services.

"These investors are often more flexible than banks, value-driven, and patient in their return expectations," she says. "To garner interest, start by clarifying your clinic's 'why,' whether that's sustainability, affordable pet care, or community outreach. That narrative will drive interest from both crowdfunding backers and impact funders. Also, build a robust financial plan that shows scalability and resilience, which is critical for gaining trust in any funding route, traditional or alternative."

This summer, Tandem Vet Care in Boston, Mass., secured $10 million in pre-seed funding to open its flagship clinic, which offers primary care, urgent care, surgery, and more.²

"There's no one-size-fits-all approach to financing," says Prem Sharma, CEO and founder of Tandem Vet Care. "We used a mix—impact investors, strategic bank loans, and smart partnerships. Traditional loans are great for large capital needs, like equipment or build-outs, but they're rigid by design. You don't want to rely on just one source, especially when the model you're building doesn't fit neatly into existing lines."

That's where the right impact investors make a difference. For his business, that meant people who were aligned with its product-led growth vision, who understood the long game and believed in the system it was building.

"They're not just asking about projections; they're asking how we support vets, how we increase access and what long-term change looks like in this space," Sharma says. "That kind of alignment is everything."

Getting investors requires focus and a strong message.

"I led the round from start to finish—crafting the story, building the deck, and pitching a new model for vet care," Sharma says. "But before we ever raised a dollar, we pressure-tested the idea in the real world. When we lost our first clinic lease, I didn't wait—I grabbed a folding exam table and set up a pop-up in a Boston apartment building. I ran the appointments myself. People showed up, paid, and trusted us with their pets. That was the moment we knew we had something real."

Tandem Vet Care repeated that model in dozens of buildings, and that traction—combined with its long-term vision of mobile clinics, telehealth, and Tandem Hubs—was what Sharma brought to the right investors.

"Not just people chasing scale, but those who believed in rebuilding the system for both vets and pet parents," he says. "You've got to show the work. For us, that means tracking how many families we've reached through neighborhood wellness clinics, how much time we're saving vets, how many emergency cases we've helped avoid with earlier intervention. But just as important are the real stories. You need the data, but it's the human impact that makes it real."

One of the biggest challenges was convincing investors that the company's vertically integrated model was possible and essential to truly reshaping veterinary care.

"At the time, most of our peers were focused on narrow solutions—just telehealth, or just AI scribes," Sharma says. "We knew that wouldn't be enough. It took a lot of work to show that this wasn't just a bold idea, but a viable one—and that we could build it step by step, with a product-led approach that vets and pet parents would actually use."

Utilizing grants

Grants are also often underutilized when it comes to veterinary care. Most local governments and national governments, as well as private foundations, have grants available specifically for small healthcare and animal services businesses.

"The money does not need to be repaid and can be a very valuable source of funding when beginning a clinic," Rulfs says. "A lot of these grants aim to stimulate innovation in animal care as well as assist underprivileged communities. The practices should be proactive in looking for and applying for these grants, as it might be competitive in terms of applications."

When applying for grants, Armstrong notes that because they are ultra-competitive, vets should proactively track pro bono cases, clients you subsidize, and rescues served on a frequent basis, as data can be powerful here.

"The important part is tying this to real outcomes, such as improved client retention, revenue growth, and community impact," he says. "Prepare to share stories behind the data, as your partnerships will be able to connect with the mission behind the company."

Help is out there

These non-traditional forms of financing are particularly well-suited to the veterinary sector, where many potential investors and contributors are already passionate about the cause.

"Veterinary clinics seeking capital have more options compared to banks," Armstrong says. "Impact investors—found through networks like the Global Impact Investing Network—value mission-driven care and community impact. Loan alternatives, such as Kiva or Honeycomb Credit, offer accessible funding, and grants from Petco Love or USDA can support expansion. I recommend leaning on your network of CPAs, attorneys, and advisors to make the right connections."

Still, no single platform will solve this, so practices need to work hard to network, talk to banks, and find groups that have invested in similar concepts.

"The key to success is transparency, clear communication, and a well-defined plan that resonates with those who share the vision for advancing animal care," Rulfs says.

With these methods, veterinary practices can bypass the barriers of traditional lending while strengthening their relationships with the community and investors.

"As pet ownership and demand for ethical animal care rise, veterinary practices that leverage alternative finance aren't just securing funding, they're building a business model with purpose at its core," Rogers says. "For clinics priced out of traditional loans, this can be a strategic path to sustainable, community-backed growth."

A graduate of the University of Miami, Keith Loria is a D.C.-based, award-winning journalist who has been writing for major publications for close to 20 years on topics as diverse as veterinary medicine, travel, and entertainment. Loria started his career with the Associated Press and has held high editorial positions in publications aimed at healthcare, sports, and technology.

References

1. https://www.merck-animal-health-usa.com/offload-downloads/2023-vet-team-wellbeing-presentation
2. https://www.businesswire.com/news/home/20250224238437/en/Tandem-Raises-USD-10M-in-its-Pre-seed-Round-to-Revolutionize-Pet-Healthcare