Kitty Kasas is a business started by a couple from Basalt, CO, that wants to make better, more modular housing solutions for cats. Perhaps taking a cue from Swedish modular design, the entrepreneurs have created a series of interlocking squares that can be stacked to create a modular home for cats with several different features.
The couple behind Kitty Kasas run a no-kill animal shelter in Colorado and designed the product to be more interactive and interesting for people with one or many cats. In addition, they are designed to be easily cleaned with bleach or power washing.
Lori seemed pleased with the idea and stated that cats would like it because cats prefer enclosed spaces.
Kitty Kasas saw $200,000 in sales over the previous three months. They had seen $600,000 in sales over the last 18-24 months but ran into a "hiccup" after partnering with a major plastics company in Europe.
Kitty Kasas offers three different modules, an enclosed cat bed ($10 to manufacture), a scratching post within the module format ($11), and a top cat bed that could sit on top ($5). In turn, these items would retail for $39, $49, and $22.99 respectively. The entrepreneurs state that "most" of their sales are direct to consumer.
This deal appeared in Episode 10.11.
Making a Deal
The entrepreneurs stated that if they made a deal, they would use the money to build out their e-commerce site and invest in social media marketing.
While guest shark Sara Blakely seemed to like the idea, she dropped out because she is allergic to cats. Likewise, Mark said he was allergic to the pet business. Barbara left the deal because she just plain stated that she hates cats.
The entrepreneurs attempt to get Lori to lower her equity ask to 25% but she declined stating that she wanted to be an equal partner. However, the entrepreneurs are able to get her to lower her ask to an even 30% and a deal is made.
- The entrepreneurs allege that a German plastics company offered to take over manufacturing and to pay Kitty Kasas a royalty but then "stole" the idea and did not pay them anything. Despite having a patent, the entrepreneurs stated that rather than get bogged down in litigation, they found a new manufacturer and essentially started from scratch.