"This is a stupid idea" - When Kevin O'Leary's Shark Tank investment in Basepaws paid off

Shark Tank investor Kevin O'Leary recently shared on his Instagram, an update about the company that he had invested in called BasePaws. It was owned by a woman named Anna Skaya.

Kevin describes that all of it happened four years ago during the filming of Shark Tank. He described that the cat DNA test kit, which cost a user about $29, was used by taking a swab and "stick it where the sun doesn't shine in your cat."

This needs to be sent to their labs. The company will then analyze the data and then tell the customers what they should feed their cats to elongate their lives.

Kevin says that he was not fully on board with the idea and even told the owner that instead of using a cat DNA testing kit, he could buy a new cat for $5 when this one expires. Talking about the same, the Shark Tank investor said,

"I looked at it and said, 'Anna, I can buy a new cat for 5 bucks. Why would I give, you know, when the cat sniffs, I can just get another one?' Because the average life of a cat is 12 years. She could extend the life to 20. I said, 'Anna, no one is gonna give you a dime, this is a stupid idea.' But she was so persistent. For $250,000 I'm gonna get her put of here, I'm gonna give her a deal."

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Shark Tank investor Kevin O'Leary updates about his investment in BasePaws

Shark Tank's Kevin O'Leary invested in BasePaws which appeared on the show in 2019 when Anna Skaya, the owner, convinced the shark to invest in her business. She sold at-home DNA testing kits that learned about a cat's breed composition and its traits along with genetic compositions to better feed it and take care of the animal during various seasons.

Even though Kevin did not understand the idea and thought it was "stupid," he invested nevertheless just to get the entrepreneur out of there. Talking about the same, the Shark Tank investor continued by saying,

"That company was not in the cat business, it was in the DNA data collection business and it got bought by Zoetis for such a number that we had to sign an NDA, to not disclose the purchase price. All cash, 36 months later. I made a sh*tload of money. I'd invest in her in two seconds but she's too rich."

Back when Anna Skaya appeared on Shark Tank, she sought $250,000 for 5% of the company. BasePaws, she said, was the world's first DNA test for cats, which contains a kit with a tape that is to be stuck on a cat and pulled off like waxing, but it doesn't hurt the animal.

Anna says that they test the genetic material in the lab and then give a comprehensive overview of the cat and its body, which would help the owner understand their pets better.

By the end of the pitch, Kevin made an offer to Anna, but it was too high for her to consider. Soon, Robert joined in and made a deal with Kevin together for $250,000 in exchange for 10% of the company. Kevin also wanted advisory shares apart from this. Ultimately, she ended up accepting both of their offers in a joint deal.

In an update about the same, Kevin said,

"I invested in Anna for Anna. She is so good at promoting her products. She has built that business tenfold since she was on Shark Tank."

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Shark Tank season 16 episodes are released weekly on ABC at 8 PM Eastern Time on Fridays. They are later available to watch on Hulu.