Cat Amazing Interactive Toys & Feeders For Cats
DEAL
EPISODE SUMMARY
đź•“ Air Date: April 15, 2022
Asking For:
$200,000 for 10%
Investor:
Lori Greiner
Deal:
$200,000 for 22% with 5% from each share for shelter cats
PRODUCT SUMMARY
Cat Amazing offers a line of interactive puzzle feeders designed to entertain indoor cats and stimulate their natural instincts.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Andrey, the founder of Cat Amazing, hails from Fort Lee, New Jersey, originally from Russia. Having experienced the challenges of integrating into a new community, he found solace and companionship in the household pets during his childhood. After moving to the United States, he continued to cherish the bond he shared with these animals. The inspiration for Cat Amazing struck when Andrey and his wife adopted their cat, Mooky, in their small studio apartment.
Faced with the task of keeping Mooky engaged and active within the limited space, Andrey observed Mooky’s fascination with a simple red ball. Motivated by Mooky’s playfulness, he began crafting makeshift mazes and puzzles using available materials, which eventually led to the development of the Cat Amazing line of interactive puzzle feeders. Andrey’s journey with Cat Amazing started as a passion project, gradually evolving into a business venture as he recognized the potential for providing enrichment to indoor cats.
Driven by his personal connection to his pets and a desire to contribute to the well-being of shelter cats, Andrey’s commitment to the product’s development and growth has been fueled by his passion for fostering happiness and engagement among feline companions. Cat Amazing’s headquarters remain in Fort Lee, where Andrey continues to lead the company’s operations and expansion, supported by his team and the partnerships forged with the Sharks.
The Product
Cat Amazing offers a range of interactive puzzle feeders specially designed to entertain and engage indoor cats. These puzzle feeders, available in three sizes—Classic, Sliders, and Mega—offer varying levels of difficulty, catering to cats of different skill levels and intelligence. The feeders are designed to stimulate cats’ natural hunting instincts, encouraging them to explore, scratch, sniff, and retrieve hidden rewards, providing hours of mental and physical stimulation.
Not only do these puzzles provide entertainment, but they also promote better digestive health and weight control, as they slow down eating, preventing overindulgence. The product’s innovative design ensures that it is a suitable match for a cat’s intelligence and dexterity, keeping them consistently challenged and engaged. Furthermore, each purchase contributes to the company’s mission of donating toys to shelter cats, making it a product with a positive social impact.
Cat Amazing’s interactive feeders are primarily available for purchase on Amazon, where they are priced between $16 for the smaller sizes and up to $30 for the larger, more complex versions. With a strong emphasis on affordability and accessibility, the product is positioned as a must-have for cat owners looking to provide their indoor feline companions with enriching and stimulating activities, enhancing their overall well-being and quality of life.
How It Went
The company’s position before Shark Tank
Cat Amazing, based in Fort Lee, New Jersey, has exhibited a robust performance in the market, marked by steady growth and a strong customer base of devoted cat lovers. With a sales journey that initially began as a modest side project, the company experienced a significant upswing, reaching $300,000 in sales in 2018 and further escalating to $420,000 in the following year and $550,000 subsequently. The business has demonstrated profitability, maintaining a lean structure and managing to secure a substantial market presence primarily through its strategic positioning on the Amazon platform.
While the company primarily relies on its direct-to-consumer model, it has formed partnerships with various organizations dedicated to animal welfare, emphasizing its commitment to supporting shelter cats. Cat Amazing’s key partnerships and collaborations revolve around its mission to provide enriching experiences for indoor cats while contributing to the well-being of shelter animals, aligning with its founder’s vision of fostering happiness and engagement among feline companions.The company’s distribution model primarily centers around direct sales through Amazon, leveraging the platform’s wide customer base and efficient logistics infrastructure.
With a focus on maintaining accessible pricing for consumers, Cat Amazing has kept profit margins relatively low, currently averaging around 20%. The company’s available capital has been predominantly generated through its sales revenue, with a deliberate focus on reinvesting in the business’s growth and expansion efforts. In terms of the company’s structure, Cat Amazing operates under a relatively streamlined organizational setup, with Andrey serving as the primary decision-maker, overseeing key aspects of the business, including sales management and product development.
The Negotiations:
During the “Shark Tank” negotiations, Andrey, the founder of Cat Amazing, presented his product and his unique vision for helping shelter cats. His pitch garnered the attention of several Sharks, each of whom made offers and engaged in a thoughtful discussion. Kevin O’Leary offered $200,000 in exchange for a royalty of $2 per unit until the initial investment was recouped, after which it would drop to $1 in perpetuity. However, Andrey was hesitant about the royalty component.
Lori Greiner and Daymond John recognized the potential of Cat Amazing and made a joint offer of $200,000 for 25% of the company. What made this offer special was their commitment to allocate 5% of their respective shares to support shelter cats, a cause that deeply resonated with Andrey. This offer was presented as a way to honor Andrey’s promise to his late cat, Mooky. Robert Herjavec and John also made a similar offer of $200,000 for 25% with a commitment to allocate 5% of their shares to helping shelter cats.
However, Andrey was hesitant about making a deal that might compromise his promise. Mark Cuban then stepped in with an offer of $200,000 for 22% equity, without any royalty. He also proposed a joint commitment to allocate 10% of the equity to support shelter cats. Although Andrey was considering this offer, Lori Greiner made a final, compelling offer of $200,000 for 25% equity. This offer aligned with Andrey’s vision and commitment to helping shelter cats. In the end, Andrey accepted Lori Greiner’s offer, fulfilling his promise to Mooky while securing a partnership with a Shark who shared his passion and vision.
