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On Shark Tank Season 10 Episode 10, Kitty Kasas founders Nikki Linn and Rusty Niedwick were seeking $200k for 20% of their business. Their cat toy products impressed the sharks as they revealed Kitty Kasas had made $600,000 in sales. The founders further shared they recently made $200,000. Each unit was priced at $10 to $11 to make and was priced between $29 and $49 depending on the toy's features.
Kevin O'Leary was the first shark to place an offer of $200,000 for 33.3% equity; however, he wanted to change the future plans of the business by focusing more on selling products on a direct-to-consumer basis. Kevin said,
"When I look at the margins, you don't make a lot of money selling to retail. That's the problem. I don't like retail for this I don't like the size of the product this thing is very interesting on a direct-to-consumer basis. Look I like it."
Then, Shark Tank investor Lori Greiner matched Kevin's offer, expressing her love for cats. The founders had high hopes of partnering up with a shark to build a brand name in the pet business. After placing a counteroffer that Lori accepted, Nikki Linn and Rusty Niedwick secured a deal with her.
Kitty Kasas founders accepted Shark Tank investor Lori Greiner's offer
The Shark Tank investor Kevin O'Leary suggested that the better way to scale this business was to shift the strategy to a direct-to-consumer basis. He placed an offer of $200,000 for 33.3% equity of the company. Then, Lori mentioned she loved cats and the product was just the right fit for the target market. Lori started asking more questions about the product, sales, and overall business strategy.
O'Leary interrupted, asking Lori to compete with him, as he was also interested in partnering up with the founders. The Shark Tank investor said,
"You know one of the things I start to feel is I'm not loved and when I don't feel loved... if Lori wants to compete bring it forward I'm trying to help her move along."
Lori decided to match Kevin's offer; she said,
"I think that potentially I could sell this while in QVC, for one big reason, so many pet lovers. I'm going to make you an offer; 200k for 33.3%, just because he's [Kevin] such a cat hater. So I am going to match exactly what he did."
The founders then countered with 30% equity, which Lori accepted. Mark Cuban backed out from placing an offer as he didn't like investing in pet businesses; Barbara Corcoran, on the other hand, stated she hates cats, which is why she backed out as well.
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As of 2022, the business has now been acquired by Jolly Pets, who sell their products on platforms such as Amazon and stores including Petco and Pet Supplies Plus. The company's CEO, Robert Miavitz, stated that the Kitty Kasas founders were still involved in the business. There has been no confirmation about whether Lori is still involved after Jolly Pets acquired the company.
Shark Tank is available to stream on ABC.
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