TailStory TailStory

Business plan
The pet health record that fills itself in.

One photo becomes a structured profile. A tap or a spoken sentence keeps it current. That record then watches the animal, answers health questions with the book cited underneath, crosses a border, briefs a sitter, and recommends products specific enough to earn a commission.

✦ Pre-seed · €350K now · €250K on milestone The Netherlands & Austria first · built for Europe Live beta · 5 languages
TailStory · Amsterdam, the Netherlands
Mohsen Zare · Kimia Nazarian
[email protected]
tailstory-app.com

Section 1

Executive summary

TailStory · Business plan

TailStory is the pet health record that fills itself in. A photo of the animal becomes a structured profile — species, breed, coat, body condition, size, visible health observations — in one AI call. From there the product follows a single rule: never ask the owner to supply data; infer it, then let them confirm in one tap.

The product is live in beta today, in five languages, on iOS and Android; the store releases ship with the Netherlands and Austria launch. Every screen shown to an investor is the real application: photo-to-profile, one-tap and voice logging, a medical timeline, the EU pet passport, expiring share links for a vet and a sitter, an AI vet assistant grounded in the animal's own history, and a shop that compares prices across five retailers. Built end to end by the two founders, no agencies.

What the record then does

Three revenue lines, one asset

LineMechanismStatus
Subscription — TailStory Plus One pet is free forever; a second works fully for 14 days, then needs Plus — unlimited Doctor after its 15-day trial, the vault, wellness checks and export Priced; needs in-app-purchase wiring
Affiliate commission Server-side tracked redirect to five retailers; the purchase happens on the merchant's site. No cart, no checkout, ever Built end to end
Partner Network Sitters, pet hotels, shops and vets subscribe (from €9.99/mo) for a profile and sponsored placement via a separate Partner app; a booking commission settles via Stripe once live Specified (Section 10)

~90M

pet-owning households in the EU — the market TailStory is built for

2

launch markets: the Netherlands and Austria, both languages shipped

€350K

now, plus €250K on milestone — 18 months to a proven € per pet per month

Why the three lines fit together: every one of them is paid for by the same asset — a filled, current pet record. The record is what makes a recommendation specific enough to click, what makes a Sitter Digest worth sending, and what makes deleting the app expensive.

Section 2

Problem and solution

TailStory · Business plan

The problem, stated for an owner rather than an investor

A pet's life is recorded in five places at once: a paper EU passport in a drawer, a photo of a vaccination card, a vet's own system the owner cannot read, a message to the sitter, and memory. Nothing connects. So at the vet the owner reconstructs eight months from memory; at the border the family finds out the rabies shot expired last month; when they travel the sitter gets a hurried voice note and guesses; in the shop they buy on a photo of a bag they liked; and at 2am, when the dog is limping, they read a forum written by strangers about a different dog.

Paper and memory

The passport is in a drawer and the history is in someone's head — both fail at the counter.

Forms and diaries

Existing apps ask the busiest person in the household to become a data-entry clerk in exchange for a chart.

A blank day reads zero

Miss two days and every screen looks broken rather than untouched — so the app gets deleted, not ignored.

The solution, one line per problem

ProblemTailStory
The record does not existA photo makes it exist in one AI call
Keeping it current is workOne tap for a whole ordinary day; one spoken sentence for anything else
Nobody can read it when it mattersEmergency Pass to the vet, Sitter Digest to the sitter — expiring links, printed to A6
The border questionThe passport is stored, and the app says what our copy is missing — never whether the animal may travel
The 2am questionAn AI vet assistant grounded in this pet's history and a book corpus, with citations and a hard bias toward "see a vet now"
Buying blindPer-pet picks with a stated reason, price-compared across five retailers
The insight the whole company rests on: a pet record is not a document. It is an accumulating asset that gets more valuable to its owner every week and is worthless to a competitor. Thirty days in, the app knows the routine, the calorie and water goals, the weight trajectory and the care gaps — and that history does not travel to another app. Every mechanism in TailStory exists to make those first thirty days cost the owner as little effort as possible, because after that the product defends itself.

Section 3

Product and technology

TailStory · Business plan

This section is not a roadmap. Everything in it is built and running.

What is shipped, and what each part is worth commercially

FeatureWhat it doesCommercial role
Photo → profileOne AI call turns a photo into species, breed, sex, birthdate and weight estimates, coat type, body condition, size and visible health observations, each with a confidence chip and a review gate before saveAcquisition. Competing apps ask a nine-field form and lose the user at field four
Quick logs + voiceSpecies-specific one-tap chips; one spoken sentence goes to the model as audio and comes back as several structured entries — one multimodal call transcribes and structures — approved in a tapActivation — the habit that produces every downstream asset
Usual day + forgiving streakThe pet's learned routine logged in one tap; a streak that counts days with any log and never turns redRetention. Guilt is what makes someone delete a pet app
TailStory DoctorRetrieval-augmented: a search_books tool over our own embedded veterinary corpus, plus medical-history tools and a server-pinned pet id, up to four image attachments per message, and the book and chapter cited under the answer (Section 4)The paid feature: recurring, personalised, near-zero marginal cost — and the hardest part of the product to copy
Visible health observationsThe photo analysis already returns body condition, size, an overall visual impression and per-area observations, each marked visible-or-not with its own confidence, and worded as an observation rather than a diagnosisThe foothold health intelligence is built on — and the reason Section 4 is an extension rather than a new product
EU pet passportThe booklet stored as a record — number, issuer, rabies validity, chip dates, section pages, private scansRetention, and the highest-intent purchase window in the product
Emergency Pass / Sitter DigestTwo expiring, revocable share links (30 / 14 days) — one medical, one operational, deliberately differentDistribution, and the on-ramp to sitter bookings
ShopPer-pet AI picks with reasons, price comparison across five retailers with shipping and delivery window, and a tracked redirectRevenue line 2

Section 3 · continued

Product and technology

TailStory · Business plan

The stack, in one paragraph

An Expo / React Native app on iOS and Android talks only to a modular NestJS API which holds the privileged database key — that key never reaches a device, so every business rule lives in one place. AI is a single module in front of one provider, so the provider is swappable without touching feature code. Vector search runs in the same Postgres. Scheduled jobs, not request-time calls, load store catalogs, affiliate feeds and the vet directory into our own database.

The architectural fact with the largest commercial consequence: no request path calls a third party synchronously. An outage, a pending marketplace approval or a suspended affiliate programme degrades freshness — never availability. It is why the shop could ship complete while every store is still feed-fed, and why nothing user-facing waits in a partner's approval queue.

Four positions enforced in code, not in a policy document

Section 4

The AI stack

TailStory · Business plan

Three claims deserve scepticism in any consumer AI pitch: AI-powered, grounded in veterinary literature, and reads health from a photo. This section states exactly what each one means at TailStory, which parts run today, and which parts this round builds.

Retrieval, end to end — every stage is ours

TailStory Doctor is a retrieval-augmented system, not a prompt in front of a general model. The corpus, the index and the retrieval all live on our own infrastructure; the model provider is the only replaceable part.

StageWhat happensWhere it runs
IngestVeterinary and animal-behaviour books parsed to text and split on chapter and sentence boundaries into ~800-token passages with ~100 tokens of overlap, so a quoted passage is still readable on its ownOur own pipeline, once per book
Embed768-dimension vectors, batched with retry and rate-limit backoffProvider API, offline — never on a request path
Storebook_chunks as vector(768) in the same Postgres as the pet record. Row-level security is enabled with no policies: the corpus is not user data and only the backend can reach itOur database
RetrieveCosine nearest-neighbour search in a SQL function, exposed to the agent as a search_books toolOur database
GroundThe same tool loop reads this pet's profile, recent activity and full medical history. The pet id is pinned server-side and no tool accepts one, so nothing a user types can reach another account's animalOur API
CiteBook title and chapter of every passage used, de-duplicated, returned with the answer and rendered under itOur API
The commercial consequence. A curated corpus, its embeddings and the retrieval layer are assets that stay with the company; the model provider is a commodity that sits behind a single service and can be replaced in an afternoon. This is the difference between an AI feature and an AI dependency — and it is why a change in anyone's pricing or terms is a config decision here rather than an existential one.

Voice, in one call

Audio goes to the model as a media part: a single multimodal call transcribes a spoken sentence and structures it into proposed log entries, with no separate speech-to-text vendor, no second bill and no second failure mode. The same primitive gives the Doctor a microphone — and there the transcript lands in the composer editable and un-sent, because a mis-heard question produces a confident answer to something the owner never asked.

Section 4 · continued

Health intelligence

TailStory · Business plan

The record already knows what was done to the animal. Health intelligence is the layer that knows something about the animal itself — from a photograph of a symptom, from a lab report, and from the shape of the last ninety days of logs.

Two rules, and they are not negotiable

What the model is asked — and what it is never asked

The vision schema contains closed enumerations for colour and consistency, booleans for visible blood, mucus, parasites, discharge and swelling, an image-quality field, and a is this even the body part we asked for flag. The words urgency, diagnosis, cause, condition and recommendation do not appear in the schema at all — not as a property, not in a description. A photo of the floor returns a normal band and a "wrong area" code, not an error: it is a user event, not a failure.

Four bands, four actions

BandWhat the owner seesWhy four and not three
normalNo banner. A "log it anyway" action"Book an appointment this week" and "call someone now" are different actions. Collapsing them makes the urgent one unbelievable, and an urgency nobody believes is worse than none
monitorA gold banner and the proposed log entries
vet soonA coral banner, plus a pre-filled vet appointment
vet nowA filled coral banner and the emergency-call action — never auto-dialled, never blocking
Nine body areas, in one gesture: stool, food, water, ear, eye, skin, mouth, wound and paw. Food and water are the boring ones — a bowl becomes an estimate of kcal or ml — and they sit in the same row on purpose. The frightening version and the ordinary version of this feature are the same three taps, which is the only reason the ordinary one gets used often enough for the frightening one to have a baseline to compare against.

Section 4 · continued

The trend engine, and the limits on it

TailStory · Business plan

The trend engine

Fifteen rules over the assembled history of one animal, evaluated on a schedule. Each is a pure function of a context object, so every threshold is unit-tested and no rule can quietly disagree with another about what "this week's mean water intake" is. Six of the fifteen:

SignalFires whenBand
Rapid weight loss≥5% of body weight across ≥14 days (cats: ≥3%)vet soon
Drinking more7-day mean ≥ 1.8× the preceding 21-day mean, and above goalvet soon
Not eating — catZero kcal logged for 24 hoursvet now
Repeat concerning stool≥3 concerning toilet logs inside 7 daysvet soon
Symptom persistingAn open symptom, unresolved, ≥5 days oldvet soon
Lab value out of rangeA flagged measurement with no vet visit after itmonitor → vet soon at ≥2
The single most important constraint in the feature: every rule declares a minimum history before it may fire at all, and only two of the four bands are ever allowed to send a push — at most one per pet per day. An alert derived from two data points, or a third push in an afternoon, is the alert that teaches an owner to ignore the next one. The restraint is the product.

Why this is not a medical device, by construction

The honest description of the whole layer is one sentence: it notices, and it tells you to ask someone who knows.

Section 4 · continued

What the layer is worth, and what is built

TailStory · Business plan

What it is worth commercially

A daily reason, not a monthly one

A record you consult when something is wrong is opened more often, and by the person who would otherwise have opened a search engine at 2am.

The strongest Plus surface

Trend alerts, lab-record scanning and the analyte charts are exactly what a worried multi-pet owner will pay for — at the existing price, with no new tier.

The vet channel, earned

A clinic recommends what makes a consultation better. "My owners arrive with a dated photo history and their lab values charted" is that argument.

Status — what is shipped and what this round builds

CapabilityWhat it does todayStatus
Photo → profilePer-area visible health observations, body condition and a confidence on every field, at pet creationShipped
Doctor + corpusRetrieval over the book corpus, the pet's medical history, image attachments, citations under the answerShipped
VoiceOne multimodal call transcribes and structures; the Doctor microphone extends the same endpointShipped · extends in Q1
Phases 0–2Symptoms as a first-class record, the nine-area photo check, voice in the DoctorSpecified in full · Q1
Phases 3–5Lab and vet-record ingest, the trend engine and its push, the two-component health scoreSpecified in full · Q2
Why this is in the plan rather than the backlog: the expensive halves — the vision pipeline, the retrieval layer, the multimodal ingest and the safety architecture that keeps a model from ever choosing an urgency — are built and running. What remains is the rule tables and the surfaces that read them, which is why two engineers and two quarters is the whole estimate. The layer is also the reason the Plus argument stops being "more pets" and starts being "it watches the one you have".

Section 5

Market and launch sequence

TailStory · Business plan

Every figure here is a planning assumption pending verification against European pet industry data — sized to be directionally defensible, not quoted as fact (Section 14).

LayerDefinitionAssumption
TAMPet-owning households in the EU~90M households; ~340M companion animals
SAMPet-owning households in NL + AT + DE, smartphone-first, in the multi-pet and travel segments~19M households; ~6M multi-pet
SOM (36 months)Reachable via organic search, vet, breeder and shelter partnerships, and paid in the launch markets~500k installs; ~140k monthly actives

European pet spend is recession-resistant and rising — owners cut their own spend before the animal's — and the multi-pet household is not a niche: about a third of pet-owning households have more than one animal, and they spend disproportionately.

Why the Netherlands and Austria first

The Netherlands

The home market, so support, legal and partnership work happen in person. It is the most app-native, highest-density pet market in Europe, with high per-animal spend and a population comfortable adopting a new consumer app in English or Dutch. Dutch is already shipped. Amsterdam is a whole metro area inside one liquidity pool, so the first sitter city carries national coverage on its own.

Austria

Eight land borders make travelling with an animal routine — and the paperwork is the part people get wrong. Austrian rules are the hard case and are already encoded as data: heat thresholds, rail carriage conditions, EU 576/2013. German is already shipped, and Vienna is small enough to saturate as the second sitter city.

Why a pair rather than one country: two markets sharing no border, language or retail landscape prove that opening a market is a store list and a listing, not a rewrite. Clear both, and Germany — the volume market — is next.

Expansion sequence

PhaseMarketsWhat actually changes
1NL + ATLive. Both languages already shipped
2DE + BEStore lists and app-store listings; German and Dutch are already there
3CH, CZ, SK, HUCurrency for CH; regional data becomes a per-country table
4EU-wideMulti-currency in the shop; per-country affiliate programmes

The sitter marketplace expands city by city, not country by country: a national launch with no density is a launch with no bookings.

Section 6

Competition and moat

TailStory · Business plan
CategoryExamplesWhat they do wellWhere TailStory wins
Pet diaries and trackers11pets, DogLog, PetDeskReminders, vaccination listsThey are forms. TailStory's record is inferred, and it does not stop at storage — it answers, shares and buys
Vet-practice appsClinic-branded portalsTied to a real medical recordSingle-clinic, no travel, no daily habit, no commerce — and the owner cannot take the record with them
Sitter marketplacesRover, Pawshake, local platforms in NL and ATLiquidity, reviews, insuranceThey have the booking and no record. TailStory arrives with the animal's routine, goals, dose times and house rules already written
Pet retailZooplus, Fressnapf, AmazonRange, price, logisticsThey sell to a shopper. TailStory recommends to a specific animal and compares them against each other rather than being one of them
General AI assistantsConsumer chat assistantsFluent answers; they can look at a photoNo record, no history, no corpus, no citation, no continuity — and no clinical table behind the photo, so the urgency is the model's opinion. The Doctor answers about this pet, names the book it used, and hands the urgency decision to code
As far as we can find, nobody occupies the intersection. Diaries do not sell. Retailers do not record. Marketplaces do not know the animal. The intersection is only defensible if one company holds the record — which is why the record is the product and the three revenue lines are consequences of it.

The moat, in order of durability

Any one of these is copyable in a quarter. The combination is not.

Section 7

Business model — three revenue lines

TailStory · Business plan

Line 1 monetises ownership. Line 2 monetises buying. Line 3 monetises leaving the house. They peak at different moments in a year, which is the point: affiliate spikes at seasonal and life-stage changes, sitter bookings spike in July–August and December, and the subscription is flat and compounding underneath both.

Line 1 — TailStory Plus

One pet is free forever. A second pet requires Plus. That is the correct place for the wall for three reasons specific to this product. The single-pet experience is already complete, so the free tier is a real product rather than a demo. Adding a second pet is the highest-intent moment in the app — someone typing a second animal's name has already decided TailStory is where their animals live. And multi-pet households are where retention, basket size and vet frequency all concentrate at once.

FreeTailStory Plus
Pets1Unlimited
Photo → AI profile, logging, voice, usual day, streak
Health score, weight curve, timeline, EU passport
Emergency Pass / Sitter Digest
Shop, AI picks, price comparison
TailStory Doctor · photo health checkFree to try for 15 days, then PlusUnlimited
Lab-record scan · analyte charts · trend alerts · wellness check · document vault · record export · household sharing
PlanPriceNote
Monthly€5.99Below a single bag of premium food, above the "is this serious?" floor
Annual€44.99€3.75 / month, −37%. The plan to push: it removes eleven churn decisions a year
Founding member€29.99First 1,000 subscribers, locked for life — early users write the reviews

Store commission is 15% under the small-business tiers of both app stores, so net revenue is €5.09 per monthly subscriber and €38.24 per annual one. Billing is in-app purchase, which the stores require; the backend needs one check — is this user premium?

The risk this creates, stated openly: every pet behind the wall is a pet not producing logs, and logs are what make the other two lines work. The mitigation is a generous trial rather than a hard block — a second pet works fully for 14 days, then goes read-only. Read-only, never destructive: a paywall that deletes an animal's record is a one-star review, and it is not worth the marginal conversion.

Section 7 · continued

Business model — three revenue lines

TailStory · Business plan

Line 2 — affiliate commission

Fully built. A tap on "Buy from Zooplus" opens our own redirect, writes a click row with our sub-id, and forwards to the merchant with the tag attached; a nightly import matches conversions back to the click. Four properties matter commercially: the app never builds an affiliate URL, so a changed tag or a suspended programme is a config edit rather than an app release; a missing tag still returns a working link, so a purchase is never broken to protect a commission; conversions are not counted optimistically, because networks confirm or reject weeks later; and reporting by source judges the AI directly — if recommendation clicks do not convert better than search, the model is decorating the shop and the AI spend should be cut. Blended commission assumption: 5% of basket. A Verified Shop subscription tier — boosted placement and its own analytics dashboard for retailers, still fulfilled through the same redirect — sits on top of this line; see the pricing note in Section 10, which applies to it as well.

Line 3 — the Partner Network

Specified in full in Section 10. The one-line version: sitters, pet hotels, shops and vets subscribe — from €9.99 a month, tiers priced by the Amsterdam pilot — for a verified profile and sponsored placement, managed from a separate TailStory Partner app — revenue that starts before a single booking button exists. TailStory already produces the document a sitter needs, and every Sitter Digest shared today is a handoff happening off-platform; a booking commission layers on top once reservations go live. Take rate on a booking: 15% from the sitter, 5% service fee from the owner, settled through Stripe Connect because a real-world service consumed outside the app is outside the app stores' billing rules.

Section 8

Unit economics

TailStory · Business plan

Cost to serve one user

CostAmountNote
Vision calls~€0.001–0.003Photo → profile, a photo health check, a scanned lab report
Doctor message~€0.002–0.006A tool loop is up to five model calls
Voice log or memo~€0.001–0.002One multimodal call transcribes and structures at once
Recommendations~€0.003 / pet / weekRule prefilter, vector rank, one model pass, cached seven days
Storage and database~€0.02 / active user / monthImages bucket, Postgres, and the book-corpus index
Infrastructure€60–200 / monthTotal, at current scale
A very heavy Plus user — thirty Doctor messages a day, a photo check and a scanned lab report — costs a few cents a month. At €5.09 net, gross margin is above 95%. The health layer does not change that: the trend engine costs €0 in model calls, every rule being a pure function over our own database.

Revenue per acting user, per month

LineDriverNet
Plus€5.99 gross, 15% store fee€5.09
Affiliate1.5 shop clicks/mo × 4% conversion × €55 basket × 5%€0.17
Sitter0.08 bookings/mo × €100 booking × 20% blended take€1.60

LTV and CAC

Plus monthly churn5% (3% blended once the annual mix reaches 40%)
Plus average lifetime~28 months blended
Plus LTV, net of store fee€142
Affiliate + sitter contribution over the same lifetime~€50
Blended LTV of a Plus subscriber~€190
Blended CAC, organic-weighted€18–35
LTV : CAC5:1 to 10:1

The organic weighting is structural, not optimistic: every Emergency Pass handed to a vet and every Sitter Digest sent to a neighbour distributes the product with no media budget.

Section 9

Go-to-market

TailStory · Business plan

Do not launch as "a pet app". Launch as the thing that answers one dated, frightening question. The wedge is the EU pet passport and cross-border travel: seasonal, searchable, high-anxiety, and with a deadline attached — which is precisely what makes it convert. "Can I take my dog to Italy in July?" has a date, a checklist and a real consequence for getting it wrong. From there the app opens sideways into the daily habit, and the habit produces everything else.

Channels, in priority order

ChannelMechanismWhy it fits
1. Vet clinicsThe Emergency Pass is already a printable A6 card. A clinic that asks new patients to "send us your pet's pass" distributes TailStory for freeThe highest-trust referral in the category, and the product is already the artefact
2. Organic search and contentCountry-by-country EU pet-travel guides, rabies-validity calculators and breed care pages, each ending in the app that stores the answerThe wedge question is searched, dated, and repeats every year
3. Shelters and breedersThe first week with a new animal is peak anxiety and peak willingness to buy — and a photo becomes a profile in one tapPartner-led, near-zero CAC, highest-LTV cohort
4. The Sitter Digest loopEvery Digest sent is a branded page arriving with a neighbour, a friend or a professional sitterBuilt, free, and already happening
5. Partners as supply-side distributionA sitter, hotel or vet who joins the Partner Network brings an existing client list; each client is an owner installThe classic marketplace supply-first play
6. Paid socialOnly after organic CAC is measured. The creative is the photo-to-profile moment — it demos in four secondsScales what already works; never used to discover whether it works
7. App-store optimisationFive languages already shipped; German- and Dutch-first listings with travel-seasonal keyword rotationCheap and compounding

Section 9 · continued

Go-to-market

TailStory · Business plan

Launch sequence

MonthMilestone
0–2Instrument everything. Nothing else in this plan is knowable until the funnel is measured. Analytics ship before features
2–4Ship TailStory Plus — billing, the pet-count wall, the 14-day second-pet trial, the read-only degradation path
3–5Affiliate live — tags applied in NL and AT, conversion import running, reporting by source
4–7Vet partnership pilot — ten clinics in Amsterdam and ten in Vienna distributing the Emergency Pass
5–7Partner Network subscriptions open — profiles, verified badge and sponsored placement live for sitters, hotels, shops and vets in Amsterdam and Vienna; the pilot that prices the tiers
6–9Sitter pilot, Amsterdam only — supply first: 50 vetted sitters before a single owner-facing booking button
9–12Vienna — second sitter city, German content engine, AT affiliate programmes
12–18Germany — store listing, DE content and affiliate programmes; household sharing; the Series-A decision
Positioning statement. For pet owners who want their animal's life properly recorded without becoming a data-entry clerk, TailStory is the pet health record that fills itself in — from a photo, a sentence, or a single tap. Unlike pet diaries that hand you a form, TailStory infers the record and asks you only to confirm it, then turns that record into answers, into a document a vet or sitter can actually read, and into products that fit this specific animal.

Section 10

The Partner Network — the third line

TailStory · Business plan

The third line was originally scoped as sitter-booking commission alone. It is now broader: sitters, pet hotels, shops and vets apply, get vetted, and pay a subscription for a verified profile and sponsored placement inside the consumer app — earning revenue before a single booking button exists. The sitter-booking commission on the following pages layers on top once reservations go live; it does not replace this.

A separate app, on purpose

A pet owner wants a simple record for one or two animals. A business wants leads, booking notifications, ad performance and review replies — different data, different urgency, different screens. TailStory Partner is a distinct app, so neither product carries the other's tools and the consumer app never grows a business dashboard nobody asked for.

Entry price published; tiers are a pilot output

The published entry price is €9.99 a month. What a sitter, a pet hotel, a shop and a vet clinic will each pay above that differs by category and by market, so the Amsterdam pilot (Section 9) prices the tiers against comparable local small-business listing and advertising spend — and the figures that survive it, not the ones here, are what enter the financial model in Section 11.

What the subscription includes

IncludedDetail
ProfileA listing in the consumer app's Partner Network directory, managed from the Partner app
Verified badgeIssued after the same ID and business-verification pass used for sitter vetting (opposite page), extended to hotels, shops and vets
Sponsored placementAlways labelled Sponsored; never changes the order an owner sees in organic search or recommendations — the same ranking rule that already governs the affiliate shop
Review toolsA public reply to any review, and a flag that routes a suspected-fake review to our moderation queue. No option, at any price, removes a genuine review
Why lead with subscriptions rather than the booking marketplace: a subscription and an ad product need a profile, a moderation queue and a payment rail — a fraction of what Stripe Connect, insurance and vetting (opposite page) cost to stand up for bookings. It is revenue the same verification pipeline produces on the way to the booking marketplace, not a detour from it. It is also exactly the kind of number a pilot should set rather than a business plan — see the risk register in Section 14 for the assumption this line depends on before it is trusted.

Section 10 · continued

The Partner Network — the third line

TailStory · Business plan

Every sitter marketplace begins with a cold-start problem on both sides. TailStory starts with the handoff already in the product. The Sitter Digest exists, carries the learned usual day, the daily goals, the dose times and the house rules, expires in 14 days and is revocable. Owners are already sending it, and each one is a booking that happened without a commission.

Demand is observable before it is built

Count Sitter Digest creations per month and segment by season, and the booking demand curve is measured rather than assumed — before writing a line of marketplace code.

The differentiator ships on day one

Rover and Pawshake hand a sitter a text box. TailStory hands them a structured care plan generated from the animal's own logged routine, and a live checklist the owner can watch being ticked off.

Model

DecisionChoiceWhy
Take rate15% sitter + 5% owner service feeRover-class platforms take 20% from the sitter alone. Undercutting on supply is the fastest way to import a sitter's clients
PaymentsStripe Connect (Express)Real-world services are outside app-store billing rules. Stripe handles KYC, payouts and tax identity
Payout timingReleased 24h after the stay endsStandard chargeback and dispute protection
CancellationThree owner-selectable policies, shown before bookingSitter-side certainty is what keeps supply on the platform
InsuranceThird-party liability cover via a partner underwriter, inside the service feeNon-negotiable for trust; the single largest line item in this business
VettingID verification, reference check, a required care-basics moduleTrust is the product on the supply side
ReviewsTwo-sided, published only after both submit or a 14-day window closesPrevents retaliation bias
GeographyCity by city, supply first. Amsterdam, then ViennaA marketplace with no density is a marketplace with no bookings and one very bad first impression
The line that makes this defensible: a sitter's check-ins are written into the owner's own timeline. When the owner comes home, the four days they missed are already logged — no gap in the record, no reconstruction, and the strongest possible argument for booking through TailStory rather than a neighbour. The sitter line feeds the record the other two lines depend on instead of competing with them for attention.

Section 10 · continued

The Partner Network — the third line

TailStory · Business plan

Risks specific to this line

Liquidity failure outside the first city

Do not open Vienna until Amsterdam's request-to-acceptance rate is above 60%. Supply first, always.

Disintermediation after the first booking

Payments held on-platform, insurance void off-platform, a repeat-booking discount, and the Digest and live-logging integration that only works inside the app.

An incident with an animal

Insurance, vetting, an incident line during a stay and a written escalation policy — budgeted before it happens, not after.

Platform reporting and contractor classification

EU platforms facilitating paid services must report seller income (DAC7): capture the data at onboarding rather than re-contacting every sitter later. Sitters are independent contractors; get a written opinion in each market before the pilot.

Subscription pricing and moderation load

Tiered subscription and ad pricing above the €9.99 entry price is unset until the Amsterdam pilot runs; a moderation queue that does not scale with applications and review disputes is the other failure mode. Price against comparable local small-business listing and advertising spend, and route every dispute through the same queue built for sitter reviews rather than a second system.

Section 11

Financial plan

TailStory · Business plan

Base case, bottom-up from the drivers in Section 8. Annual, in euro, rounded — a plan to be falsified by instrumentation, not a forecast to be defended.

Drivers

DriverY1 · NL + ATY2 · + DE, BEY3 · EU
Cumulative installs30,000150,000500,000
Monthly actives (exit)9,00045,000140,000
Pets registered24,000130,000450,000
Multi-pet share of active owners30%32%33%
Plus subscribers (exit)5503,20011,000
Plus conversion of monthly actives6%7%8%
Shop-active share of monthly actives25%27%30%
Sitter bookings per year2004,00020,000

Revenue

LineY1Y2Y3
TailStory Plus, net of store fee€18,000€118,000€440,000
Affiliate commission€4,000€26,000€124,000
Sitter commission€4,000€76,000€400,000
Sitter gross booking value (memo)€20,000€400,000€2.0M
Total net revenue€26,000€220,000€964,000
Exit ARR run-rate€45,000€340,000€1.35M

Sensitivity — the two numbers that move everything

ScenarioWhat changesY3 net revenue
BearPlus converts at 4%; sitter liquidity fails outside Amsterdam€390,000
BaseAs modelled above€964,000
BullPlus converts at 11%; sitter reaches three cities with density€2.1M
The largest swing factor is not price but what share of activated owners have more than one pet. At 20% rather than 32% the subscription line halves and the wall moves to features instead of pet count — one query, instrumented in week one.

Section 12

Cost base and use of funds

TailStory · Business plan

Cost base

CostY1Y2Y3
Team€210,000 (3 FTE)€480,000 (6 FTE)€900,000 (11 FTE)
AI and infrastructure€4,000€18,000€70,000
Marketing€40,000€140,000€350,000
Legal, compliance, insurance, audit€25,000€45,000€90,000
Payments, trust and safety (sitter line)€2,000€22,000€95,000
Total cost€281,000€705,000€1,505,000
Net−€255,000−€485,000−€541,000

Cumulative burn to end of year three is ~€1.28M. Tranche one covers months 0–11, the €250k milestone tranche to month 18; the Series-A-or-profitability decision lands in month 20.

The ask — €350,000 now, €250,000 on milestone

A €600,000 pre-seed in two tranches. €350,000 now funds months 0–11: instrumentation, TailStory Plus, the affiliate line, Partner Network subscriptions, and the Amsterdam sitter pilot. €250,000 releases on three measured numbers — multi-pet share ≥ 25%, Plus conversion ≥ 5%, 50 vetted sitters in Amsterdam — and funds Vienna and the German listing. Euro figures below are tranche one.

Team — 60% · €210,000 of tranche 1

Two engineers and one growth hire. They ship the instrumentation, the subscription and the marketplace. No agencies, and no headcount beyond these three in the eighteen months.

Marketing — 18% · €63,000 of tranche 1

The EU pet-travel content engine, vet clinic partnerships, shelter and breeder programmes, and paid social only after organic CAC has been measured.

Partner marketplace — 15% · €52,000 of tranche 1

Payments infrastructure, liability insurance, ID and business verification and vetting across sitters, hotels, shops and vets, the incident line, and supply acquisition in the first two cities.

Legal and compliance — 7% · €25,000 of tranche 1

GDPR, DAC7 seller reporting, DSA hooks, consumer withdrawal terms in NL and AT, and the contractor-classification opinions required before the sitter pilot.

What it buys: a measured funnel, a shipped subscription, a liquid sitter market, and a defensible € per pet per month across all three lines — the number that decides everything after it.

Section 13

Compliance, legal and data

TailStory · Business plan

Already enforced in the product

RequirementHow it is met
No in-app purchase for physical goodsNo cart, no checkout, no digital goods in the shop. Every purchase is an external browser on the merchant's site
Affiliate disclosureVisible on the shop tab and every product detail; the wording lives in translation files so a required phrasing can be corrected without a release
Ranking transparency (Omnibus 2019/2161)Commission never affects ordering; ordering is total price ascending, decided server-side
Price indication (AT / NL / DE)VAT-inclusive prices, shipping stated separately, and the time each price was checked always displayed
GDPR — clicksFirst-party only. A derived country is stored, never a raw IP. No user agent, no advertising id, no cross-site identifier
GDPR — deletionAccount deletion detaches the user from commission records rather than destroying them: the accounting record survives, the person does not
Medical-claim boundary"Not a substitute for a veterinarian" on every AI surface; red flags and "see a vet now" ahead of everything; the health score clamped so it can never read as an alarm
Sensitive documentsPrivate storage, an expiring signed link after an ownership check, never in a share link, never in a model prompt
Share-link security32 random bytes; missing, revoked and expired answer one identical 404; no indexing, no referrer, no caching
Data residency. Health documents and passport scans sit on EU infrastructure in private storage only the owning account can open. TailStory sells no data and carries no advertising or cross-app identifier — a promise a network trace would expose if untrue.

Section 13 · continued

Compliance, legal and data

TailStory · Business plan

What the new revenue lines add

RequirementTriggerAction
In-app purchase for the subscriptionTailStory PlusStore billing, restore purchases, and the EU "manage subscription" link
Consumer withdrawal rightsEU distance selling14-day withdrawal on the annual plan unless expressly waived, documented in the terms
Price transparency on the paywallAT / NL / DEFull price, billing period and renewal terms visible before purchase, not after
Payment servicesSitter bookingsStripe Connect handles KYC, AML and sanctions screening. TailStory must not touch funds directly
DAC7 platform reportingSitter incomeCapture seller data at onboarding; annual report to the tax authority in each market
Digital Services ActSitter profiles and reviewsNotice-and-action mechanism, a contact point, and transparency reporting that scales with size
P2B RegulationSitters are business users of a platformTerms stating ranking parameters and giving 30 days' notice of changes
InsuranceAny stayThird-party liability cover in place before the first booking. There is no acceptable version that starts later
EU AI ActTailStory DoctorThe Doctor is not a medical device and must not become one: advisory, disclaimed, biased toward "see a vet now", and never a diagnosis or a dose
AI transparency and traceabilityHealth intelligenceEvery finding is a code with a recorded input, the urgency comes from a versioned table rather than a generation, and the model's own sentence is shown only as a marked quotation. An auditor can be shown why a given band was returned; "the model said so" is not an answer we would ever have to give
Veterinary-practice law (AT / NL / DE)Photo checks and alertsDiagnosis and treatment of an animal are reserved to veterinarians. The layer is built to observe and to route to a vet — no cause, no condition we inferred, no dose — and the constraint is enforced in schema and code, not only in copy
Business (KYB) verificationPartner Network onboardingID and business-registration check, extended from sitter vetting to hotels, shops and vets
Ranking & review integrity (EU UCPD)Partner Network placements and reviewsEvery paid placement marked Sponsored, organic ranking stays commission-blind; no mechanism, at any price, deletes a genuine review

Section 14

Risks, metrics and assumptions

TailStory · Business plan

Top company risks

Multi-pet share is far below 30% · high

Instrument in week one. Fall back to a feature-based wall — Doctor, wellness check and vault — rather than a pet-count wall.

The pet-count paywall damages the free experience · high

A 14-day second-pet trial, read-only rather than deletion, and a wall that never touches the shop.

Nobody logs anything · high

The entire effortless-logging system exists for this. Three-logged-days conversion is the single leading indicator, watched from day one.

A sitter incident and reputational damage · high

Vetting, insurance, an incident line, a written escalation policy, and city-by-city rollout.

A health signal is wrong, in either direction · high

A missed urgent finding and a false alarm are both failures, and the false alarm is the one that destroys the feature — an owner who is frightened for nothing stops reading the next one. Mitigation is structural: the model never decides an urgency, every threshold is unit-tested, every rule declares a minimum history, only the two urgent bands push, and never more than once a pet a day. Every band above normal carries the not-veterinary-advice notice and routes to a real vet.

Model provider pricing, terms or availability · medium

One module in front of one provider, and the corpus, the embeddings, the vector index and every clinical table are ours. A provider change is a file. Without a key the AI endpoints return 503 and the rest of the product is unaffected — no model call sits on a request path that matters.

Affiliate programme suspension · medium

Five stores and no dependency on any one; a missing tag still returns a working link; the provider abstraction makes a swap a database row.

A competitor copies photo-to-profile · medium

It is the shallowest part of the moat and should be assumed copied within two quarters. The accumulated history, the multi-pet lock-in and the document surface are what hold.

Partner Network priced wrong or moderation does not scale · medium

No tier above the €9.99 entry price is set until the Amsterdam pilot runs. Mitigation: price against comparable local small-business listing and advertising spend, and route every review dispute through the queue already built for sitter reviews rather than standing up a second one.

Section 14 · continued

Risks, metrics and assumptions

TailStory · Business plan

The four metrics that decide the business

MetricDefinitionTarget
Multi-pet shareShare of activated owners with two or more pets≥ 30%. Below 20%, the pricing model changes
Three-logged-days conversionShare of added pets that cross the habit checkpoint≥ 40%
Plus conversionPaying subscribers ÷ monthly actives≥ 6%
€ per pet per monthAll three lines ÷ active petsThe number that governs the Series-A decision

Assumption register — the order to measure them in

#AssumptionValue usedHow to verify
A1Multi-pet share of activated owners30–33%One query, available now
A2Plus conversion of monthly actives6–8%Ship Plus, measure 60 days
A3Three-logged-days conversion40%Funnel instrumentation
A4Basket size€55Affiliate conversion import
A5Blended affiliate commission5%Each programme's live rate card
A6Sitter booking value€100Amsterdam pilot
A7Monthly churn5% (3% blended)90 days post-launch
A8Blended CAC€18–35First paid tests, once organic is measured
A9EU pet-owning households~90MEuropean pet industry annual data
A10Sitter Digest creation rate todayunknownInstrument now — the demand signal for line 3, measurable before line 3 exists
A11Photo checks per active pet per monthunknownShips with phase 1. It is the leading indicator for whether health intelligence is a habit or a novelty
A12Share of urgent bands an owner acts onunknownMeasured from the check-to-vet-event link. Low action on urgent bands means the copy or the threshold is wrong, and it is the number that governs whether a rule stays in the table

Section 15

Team and the ask

TailStory · Business plan

Mohsen Zare · Co-founder, Developer

Technical product engineer. Builds TailStory end to end — the mobile app, the AI layer behind the Doctor, and the backend that keeps every store feed and vet directory off the request path. The product in this plan is shipped, and he shipped it.

Kimia Nazarian · Co-founder, Marketing

Leads brand, growth and go-to-market. Owns the launch playbook for the Netherlands and Austria — vet clinics, shelters and breeders, the travel-content engine, and the voice that makes TailStory feel like a friend rather than a tool.

The round funds three more people and no more: two engineers and one growth hire. Everything in the eighteen-month plan is sized to that team, which is why the plan is sequenced — instrument, charge, then open the marketplace one city at a time — rather than run in parallel.

The ask

€350,000 now, and €250,000 on milestone — a €600,000 pre-seed over 18 months: instrument the funnel, ship the subscription, launch sitter reservations in Amsterdam and then Vienna, and reach a proven € per pet per month across all three lines before raising again.

60%

team — two engineers and one growth hire

18%

marketing — content engine, vet partnerships, measured paid

22%

marketplace, legal, insurance and compliance

In one paragraph. TailStory turns a photo into a structured, compounding record of one animal and keeps it current without ever asking its owner to fill in a form. That record answers questions at 2am — from a veterinary corpus we ingested and indexed ourselves, with the book named underneath — notices when the animal itself changes, crosses a border, briefs a sitter, and makes a product recommendation specific enough to earn a commission. It becomes more expensive to abandon every week it exists. One pet is free forever, because a single-pet owner with a complete product is the top of every funnel the company has. More than one pet requires a subscription, because the second animal is the highest-intent moment in the app. Affiliate commission monetises what they buy, the Partner Network monetises every sitter, hotel and vet the pet touches, and all three lines are paid for by the same asset. The commercial priority is not more features — it is instrumentation, so that the plan above can be replaced by facts.
TailStory · Amsterdam, the Netherlands · Mohsen Zare & Kimia Nazarian
[email protected] · tailstory-app.com · Deutsch · English · Nederlands · Русский · Türkçe