From Fathead to Great Pet: Brock Weatherup's Journey Through Multiple Successful Exits

Brock Weatherup has had a remarkable entrepreneurial journey, with multiple successful exits in the pet industry. In this article, we'll explore Brock's experiences building and selling companies like Fathead, Pet360, and Great Pet, and glean valuable insights for entrepreneurs looking to navigate the world of startups and exits.

The Fathead Experience

Brock's entrepreneurial journey began with Fathead, a company that created life-sized wall decals of popular athletes and sports figures. As CEO and co-founder, Brock helped grow the business rapidly:

• Fathead went from zero to $30 million in revenue in just 2.5 years
• The company tapped into fan enthusiasm for major sports leagues like the NFL, NBA, and NHL
• Fathead's unique product resonated with both fans and athletes themselves

However, Brock's time at Fathead came to a difficult end in early 2009:

• The company's bank account was unexpectedly drained of funds
• Brock faced ethical dilemmas about how to handle the situation with employees and vendors
• He ultimately resigned/was fired after confronting the majority owners about the issues
• Brock lost his $300,000 personal investment in the company

This experience, while challenging, provided valuable lessons that would shape Brock's future endeavors.

The Pet360 Turnaround

After Fathead, Brock was approached to lead a turnaround of PetFoodDirect.com, which he transformed into Pet360:

• The business was doing under $20 million in revenue and losing $7-8 million per year when Brock joined
• Brock focused on execution, people, and the business model
• They raised $20 million in growth capital after 18 months
• Pet360 grew to $100 million in e-commerce revenue and $10-15 million in media revenue
• The company was ultimately acquired by PetSmart for about $200 million

Key lessons from the Pet360 experience:

• Understanding equity structures like participating preferred shares is crucial
• The emotional impact of selling your "baby" to a larger company can be challenging
• Exits don't always result in the financial windfall entrepreneurs expect

The PetCoach Acquisition

Brock's next venture was PetCoach, a telemedicine platform for pets:

• Brock invested $1.5 million to acquire a majority stake in the early-stage company
• The business provided online veterinary consultations and pet health content
• PetCoach was acquired by Petco, with Brock joining as Chief Digital Officer

Lessons from the PetCoach exit:

• Structuring deals with a mix of cash and stock can have pros and cons
• Working in a large corporate environment after an acquisition requires different skills

The Great Pet Success Story

Brock's most recent venture, Great Pet, showcases the power of experience and relationships in entrepreneurship:

• Started from scratch with a team of 7, many of whom had worked with Brock before
• Self-funded with $1.5 million of Brock's own capital
• Grew to $20-25 million in revenue in just 24 months
• Sold to Covetrus for $30 million

Key factors in Great Pet's success:

• Leveraging industry knowledge and relationships
• Building a strong, trusted team
• Being willing to take calculated risks

Lessons for Entrepreneurs

Brock's journey offers several valuable insights for aspiring and current entrepreneurs:

1. Build genuine relationships: Treat people well, as they may become valuable team members or connections in future ventures.

2. Understand equity structures: Learn about participating preferred shares and other financial terms that can impact your payout in an exit.

3. Be prepared for emotional challenges: Selling a company can be emotionally difficult, even when financially successful.

4. Balance control and growth: Consider the trade-offs between maintaining full ownership and bringing in outside capital to fuel growth.

5. Learn from each experience: Use early ventures as "training wheels" to build skills and knowledge for future success.

6. Focus on building great businesses: Don't start a company just to sell it; focus on creating value and solving problems.

7. Be prepared for retrading: Expect potential last-minute changes in deal terms when selling a company.

8. Celebrate milestones: Take time to acknowledge and celebrate successes along the way.

Brock's Current Ventures

Brock continues to be active in the entrepreneurial world:

• He's involved with Vetted Capital, a venture fund focused on the pet industry
• Brock is also working with Wild Society Nutrition, a protein and wellness company

Entrepreneurs interested in connecting with Brock can reach out via LinkedIn.

Conclusion

Brock Weatherup's journey through multiple successful exits in the pet industry demonstrates the power of persistence, relationship-building, and continuous learning. His experiences offer valuable lessons for entrepreneurs at all stages, from first-time founders to seasoned business owners looking to exit. By focusing on creating value, understanding the nuances of deals, and building strong teams, entrepreneurs can increase their chances of success in the challenging world of startups and exits.

Whether you're just starting your entrepreneurial journey or preparing for an exit, Brock's insights serve as a reminder that success often comes from a combination of hard work, strategic thinking, and a willingness to learn from both triumphs and setbacks. As you build your own business, keep these lessons in mind and stay open to the opportunities and challenges that come with entrepreneurship.

Article created from: https://www.youtube.com/watch?v=tinijcl6xjQ