CATEapp Privacy App Update | Season 4

Neil Desai entered Shark Tank Season 4 hoping to earn an investment for his mobile app, CATEapp. The app is unique because it allows users to keep select calls and text messages discreet. Will he earn a deal on Shark Tank Season 4? Find out in our CATEapp

Shark Tank CATEapp Update

CATEapp Update

  • Entrepreneur: Neil Desai
  • Business: Call and text eraser app
  • Ask: $50,000 for 5% equity
  • Result: $70,000 for 35% equity
  • Sharks: Kevin O’Leary and Daymond John

Neil did not create the CATEapp, but revealed to the sharks that he had purchased it from a police officer for  $17,500. Immediately, his shameless hustle and focus on the bottom line captivated the sharks, except for Robert Herjavec who felt that the app was unscrupulous.

Kevin O’Leary got down to brass tacks right away and asked about sales. Neil replied that the app had 10,000 downloads, with 5,500 of the users enjoying the paid version and 4,000 of them using the free version.

According to Neil, it cost $4.99 for the paid version on Android and iPhone, while the Blackberry version cost $9.99.

Daymond John asked a follow-up question. With so few sales, why the high valuation? Why would Neil come onto Shark Tank and offer so little equity?

Neil, unfazed, replied that it was open to negotiation, but he felt it was an appropriate starting point.

Kevin decided he wanted in and didn’t care for further explanation. He recognized that the app’s ability to hide privileged data from parties who were not privy to it had more application than just in romance and relationships. He offered $50,000 for 50% of the business.

At this juncture, Mark Cuban spoke up and said that he appreciated Neil, loved the energy and the hustle, but he did not like the app, and so he was out.

Robert echoed the same sentiment, stating that he didn’t want to invest in something that he’d be ashamed of showing to his children, so he went out next.

Daymond spoke up at this point and said that, while the app was not in an area of his expertise, he would join Kevin in his deal to add value as another shark in the deal.

Barbara Corcoran made an offer as well, $50,000 for 30%, provided that the app refocused itself as a privacy app, and not a cheating app.

With two offers and three sharks still in, Neil countered to see if anyone would drop to 15%. Daymond replied that 35% would be his floor. Barbara replied that she would go down to 25% to undermine Kevin and Daymond.

Neil countered again, asking if Daymond and Kevin would increase the cash to $75,000 if they were taking 35%.

Barbara asked if Neil was only planning to negotiate with Daymond and Kevin, but actions spoke louder than words because Daymond and Kevin offered $60,000 as a counter. Neil countered one more time with $70,000, to which Kevin and Daymond agreed.

Now that Neil got a deal on Shark Tank, what happened next for his company? Keep reading our CATEapp update to find out!

Unfortunately, the deal with Kevin and Daymond was never finalized, which meant Neil received none of the funding as discussed on the pitch.

This put Neil back to square one and while the app did receive another 10,000 users after the episode aired, it vanished from app stores within months.

The company is now out of business, so this will be our final CATEapp update.

Would you like to learn about the other companies featured on Season 4 Episode 2? Follow the links below!

For even more on companies and products, be sure to stop by our Season 4 Products Page!

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Andrew Smith is the founder and owner of Shark Tank Recap. He is a longtime Shark Tank fan that has been watching it for years and has seen every episode multiple times. His friends know him as the Shark Tank expert, because he can answer any question about the show! His favorite Shark Tank products are Bertello's pizza oven and Bug Bite Thing!