'Shark Tank' judges get into a heated argument over a 6-figure deal involving a unique cat product
The investors on "Shark Tank" are incisive and even get vicious when they negotiate a deal with entrepreneurs, who find themselves facing a pack of sharks. But some founders come with a business idea so tempting that sharks turn against each other to get a bite of the promising product. One such pair of entrepreneurs was Nikki Linn and Rusty Niedwick, who founded 'Kitty Kasas.' The company's innovative product, high margins, and great sales numbers managed to impress the Sharks so much that Kevin O'Leary and Lori Greiner got into a nasty fight to sign a deal. After a mean exchange, Greiner won the battle and sealed a $200,000 deal with the entrepreneurs.
In the episode from Season 10, Nikki and Rusty entered the Tank seeking $200,000 for 20% of their business. They made a spectacular entry by smashing through their cat homes on a motorcycle. In their pitch, the couple shared that they have a soft spot for cats, but they couldn’t find easy-to-clean, durable toys and homes for their cats, so they eventually created Kitty Kasas. Their product is a modular, stackable cube system for cats, which can be used individually or stacked in hundreds of different ways. When guest shark Sara Blakely asked the partners how they got into the cat toy business, the duo shared that they had been running a no-kill animal shelter for animals for the last 20 years, and their idea just stemmed from their experience.
They shared that in two years of the company’s existence, Kitty Kasas generated almost $600,000 in sales, and just in the last quarter, it fetched $200,000 from sales. However, they added that they got into a legal dispute with a plastic maker who ripped off their idea, which slowed their growth for a bit.
While the numbers, including profit margins, were strong, Blakely decided to drop out, citing a lack of experience in the industry. However, O’Leary was interested in a deal as he offered the founders $200,000 but for 33.33% equity, which would make him a third partner. Following his offer, Greiner jumped in, calling herself a cat lover. But she wasn't sure about making an offer, so she asked some questions about the product and shipping. "Lori! While we're still young please," O'Leary said, mocking the fellow shark.
In the meantime, Barbara Corcoran and Mark Cuban decided to drop out because they didn’t like cats and the pet business. Even after their monologues, Greiner still seemed to be working on her offer. "This will be the first time a cat actually died waiting so long," O'Leary quipped again. After thinking about it a lot, Lori decided to make the exact same offer as O'Leary, which was $200,000 for 33.33%. "Just because he's such a cat hater, I'm going to match exactly what he did," Greiner said. Nikki and Rusty countered with an offer of 25% equity, and before Greiner could respond, O'Leary delivered another jibe, saying, "She has no creativity."
When Greiner got the chance to respond, she told the couple that she wasn't willing to go down to 25%. Thus, the founders finally offered 30% equity, and Greiner accepted the deal, beating her fellow Shark in the negotiations.
The deal turned out to be great for both the founders and Greiner, and by 2019, pet-toy manufacturer Jolly Pets bought Kitty Kasas for an undisclosed amount as per an official statement cited by Pet Product News.
