'Shark Tank' contestant makes the judges fight, then convinces them to team up for $250,000 deal
Every now and then, a genius product comes into "Shark Tank" and all the investors end up wanting a piece of it. One such product came from Genius Litter, whose founder, Ramon Van Meer, impressed the Sharks with his entrepreneurial acumen. He ended up triggering a Shark fight, at the end of which Kevin O'Leary got chewed out by Mark Cuban, who struck a $250,000 deal along with his fellow Sharks, Lori Greiner and Robert Herjavec.
Van Meer was seeking $250,000 for 4% equity in his company. In his pitch, he shared that his cat Quinsel got seriously sick from a urinary tract infection, and by the time he found out, it was too late. Thus, he came up with the idea of Genius Litter, a cat litter that changed colors based on the quality of the cat's urine, to detect infections and other urinary problems. “It tests the urine. If it’s a high pH or a low pH, it will tell you if there’s a potential health issue. For example, if it turns red, it could be a kidney problem. If it’s blue or green, it could be a UTI," he said.
Van Meer shared that he was a seasoned entrepreneur and had previously sold companies for millions of dollars, which allowed him to put $1 million of his own cash in the business and raise another million from investors. “I want to build and scale this business and then sell it,” he told the Sharks. He added that he had two more products in the pipeline for dogs as well. “Great idea,” Hervajec said. “You’re really such an impressive man." "You’re wonderful," guest Shark Emma Grede added.
Grede then asked if similar products existed, and Van Meer admitted that although they were available, his products were more comfortable for cats. When asked about the numbers, Van Meer left the judges in awe after revealing that the company had generated $3.1 million in revenue, with $465,000 in profits.
With this, the Sharks started making moves. O'Leary first expressed interest, saying he had invested in another pet product company, BasePaws, and his database would help Van Meer greatly. However, Grede and Cuban were not too keen to make a deal, due to their unfamiliarity with the pet industry. So, they dropped out.
O'Leary quickly teamed up with Greiner to make an offer. “Lori and I have been talking about this. Here’s the deal: we want 10% of the company for $250,000, but we want a $2 royalty until we get back $1 million,” he said. However, Van Meer wasn't interested in making a royalty deal and asked if the Sharks would do a straight equity deal. This prompted the two investors to make another offer of $250,000 for 20%.
Herjavec then jumped in, making an offer of his own. He put up $250,000 for 10% equity to undercut the other offer. “How about three Sharks?” Van Meer responded, asking the three investors to team up.
As they deliberated with O'Leary resisting, Cuban jumped back in saying, “Ramon, you came in asking for 4%. I’m so tired of this, I’ll do $250,000 for 8%. But you’ve got to say yes right now." When Van Meer asked Greiner to join Cuban, she said, “He should not be able to just come in and scoop it."
Finally, O'Leary broke his silence and said, “Ramon, I love you, but I’m going to pass. It’s just not enough,” he said. Herjavec and Greiner then changed their ask to 8% equity and 2% in advisory shares, and Cuban asked if he could replace O'Leary. Van Meer then accepted the three-Shark deal with open arms.
According to Shark Tank Recap, there is no public information available on whether the deal closed after the show. However, Genius Litter is still going strong with its expanded range of products available on its website.
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