Deal Dive: Backing a founder again after they’ve spun out from their acquirer

It’s not often that a venture capital firm gets to back a startup again after it has exited — especially one that is still a private company.

So when Builders VC got the call that the founders of cattle management software Performance Livestock Analytics (PLA) were looking to spin out from Zoetis, which acquired them in 2020, to keep scaling, Builders general partner Mark Blackwell said he was “jumping for joy.”

On Tuesday, PLA announced that it would be spinning out from Zoetis with $7.5 million in funding from Builders VC and Alaris Capital. Builders originally backed the company in 2019 during its seed round. Blackwell said that while the company’s original exit to Zoetis was a solid outcome for the founders, he’s excited to see the startup have the ability to reach what he thinks is its true potential: becoming a software platform for cattle farmers.