The Toilet Timer By Katamco
DEAL
EPISODE SUMMARY
🕓 Air Date: December 4, 2020
Asking For:
$200,000 for 19%
Investor:
Mark Cuban
Deal:
$200,000 for 25%
PRODUCT SUMMARY
Katamco's flagship product is "The Toilet Timer," a sand timer designed to encourage people not to spend too much time in the bathroom.
WATCH HERE
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Background Story
Katamco founders, Katie and Adam Stephey from Normal, Illinois, presented their unique product, the Toilet Timer, on Shark Tank. They sought a $200,000 investment in exchange for 10% equity in their company. The product is a sand timer invented by Adam that encourages people to spend less time in the bathroom, addressing what they humorously refer to as “poo-crastination.”
The Product
The Toilet Timer is a humorous yet functional sand timer with a unique mechanism. It provides users with about five minutes to complete their bathroom business, preventing them from spending excessive time on the toilet.
The founders presented it primarily as a gag gift, but it also has practical benefits, as prolonged toilet sitting can be detrimental to gut and butt health. It can be purchased online, primarily through Amazon.
How It Went
The company’s position before Shark Tank
Katamco had a successful track record, with $250,000 in sales during Christmas 2019. Their cost to produce the Toilet Timer was just under $3, and they sold it for $14.99. Their primary sales channel was Amazon, where they benefited from the platform’s algorithms. The founders expressed a desire to scale production in China using $70,000 of the investment.
The company was experiencing growth, with $318,000 in sales, and expected to reach $1 million in sales for the year. They believed they could achieve $3 million in sales with additional funding.
The Negotiations:
Mark Cuban was the only Shark to make an offer, proposing $200,000 for 25% equity. The founders accepted this offer, ending the negotiations successfully. Other Sharks, including Kevin O’Leary, Lori Greiner, Daymond John, and Barbara Corcoran, all opted out for various reasons.
Lori and Barbara were concerned about the health implications, Daymond felt it was a threat to men’s privacy, and Kevin and Robert believed the valuation was too high for a gag product. In the end, Mark Cuban’s offer was accepted, and the founders were excited to partner with him.
