CitiKitty
DEAL
EPISODE SUMMARY
🕓 Air Date: May 13, 2011
Asking For:
$100,000 for 15%
Investor:
Kevin Harringon
Deal:
$100,000 for 20%
PRODUCT SUMMARY
CitiKitty offers a solution for cat owners by providing a toilet training kit for cats, eliminating the need for messy litter boxes.
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Background Story
Rebecca Rescate, the founder of CitiKitty, resides in Yardley, Pennsylvania, with her family and beloved cat, Samantha. The genesis of CitiKitty can be traced back to Rebecca’s experience living in a cramped Manhattan apartment where the presence of a litter box was a constant source of frustration due to its odor and mess. Despite regular cleaning, the litter box remained a noticeable and unpleasant feature in her home. Determined to find a solution, Rebecca scoured the market for products that could alleviate the problem but found none that met her expectations.
Fueled by her entrepreneurial spirit and passion for problem-solving, Rebecca decided to take matters into her own hands. Drawing from her background in product development and marketing, she embarked on a journey to create a revolutionary solution for cat owners worldwide. After extensive research and experimentation, CitiKitty was born—a toilet training kit designed to gradually transition cats from using litter boxes to using the toilet directly.
Rebecca’s vision for CitiKitty goes beyond simply providing a practical solution for cat owners. She aims to transform the way people interact with their pets, offering a cleaner, more hygienic, and environmentally friendly alternative to traditional litter boxes. With a deep understanding of the challenges faced by cat owners and a commitment to innovation, Rebecca has positioned CitiKitty as a game-changer in the pet care industry, empowering cat lovers to enjoy a cleaner and more harmonious living environment with their feline companions.
The Product
CitiKitty is a revolutionary toilet training kit designed to eliminate the need for traditional litter boxes and provide a cleaner, more hygienic solution for cat owners. The kit includes a specially designed training seat that fits securely over most standard toilet bowls.
The training process is simple and gradual, allowing cats to adapt to using the toilet over time. The seat features multiple rings that are gradually removed as the cat progresses through the training stages, ultimately encouraging them to use the toilet directly. CitiKitty’s step-by-step training guide provides clear instructions for cat owners, making the transition smooth and stress-free for both pets and their humans.
By eliminating the need for litter boxes, CitiKitty offers several benefits to cat owners. Not only does it reduce household odor and mess, but it also saves money on litter and eliminates the need for frequent cleaning. Additionally, toilet-trained cats are less likely to track litter throughout the home, leading to a cleaner living environment overall.
CitiKitty can be purchased directly from the company’s website or through select retail partners. The product retails for $29.99, making it an affordable and convenient solution for cat owners looking to improve their pet care routine. With over 40,000 units sold and widespread media coverage, CitiKitty has garnered praise from cat owners worldwide for its effectiveness and simplicity.
How It Went
The company’s position before Shark Tank
CitiKitty has demonstrated strong performance and growth since its inception, positioning itself as a leading provider of innovative solutions for cat owners. With sales projections of $350,000 for the current year and over $1.4 million in total sales to date, the company has established a solid foundation for continued success. Despite limited advertising, CitiKitty has gained widespread attention through media features on platforms such as “Good Morning America,” CNN, and “The Wall Street Journal,” as well as positive word-of-mouth marketing from satisfied customers.
The company’s success can be attributed to its strategic partnerships and distribution channels. CitiKitty has forged relationships with reputable wholesalers and retailers to expand its reach and accessibility to customers. These partnerships have enabled CitiKitty to tap into new markets and attract a diverse customer base of cat owners seeking innovative solutions for pet care. In terms of funding, CitiKitty initially received an investment of $20,000 from founder Rebecca Rescate. Since then, the company has remained profitable, reinvesting earnings back into the business to support growth and development initiatives.
With a clear vision for scaling the business, CitiKitty is open to strategic investment opportunities to further accelerate its expansion and market penetration. The company is structured to maximize efficiency and effectiveness in product development, marketing, and operations. With a dedicated team of professionals passionate about improving the lives of cat owners and their pets, CitiKitty is well-positioned to capitalize on opportunities for growth and innovation in the pet care industry.
The Negotiations:
During the negotiations on Shark Tank, Rebecca Rescate presented CitiKitty, seeking $100,000 for a 15% equity stake. The Sharks reacted with mixed interest, with Kevin O’Leary and Daymond John opting out due to their lack of interest in cats and the product. Kevin Harrington, intrigued by the product’s potential for mass-market appeal and TV sales, offered $100,000 but demanded a substantial 40% equity share, emphasizing his expertise in direct-response television.
Barbara Corcoran also expressed interest, offering $100,000 for the requested 15% but with a contingency that her partner in New York, who owns a major TV business, would need to approve the product. This added an element of risk to her offer, as it hinged on a third party’s agreement. Rebecca faced a tough decision between Kevin Harrington’s certain yet costly offer and Barbara’s more favorable equity terms but with uncertainty. After some back-and-forth discussion, Rebecca countered Kevin Harrington’s offer, proposing $100,000 for a 20% stake.
Kevin accepted this counteroffer, finalizing the deal at $100,000 for 20% equity. This agreement with Kevin Harrington provided Rebecca with immediate access to his TV marketing expertise and resources, positioning CitiKitty for accelerated growth and expanded market reach. Despite Barbara’s appealing offer, the immediate certainty and strategic alignment with Kevin Harrington’s capabilities ultimately swayed Rebecca’s decision.
