CATEapp Privacy App Update | Season 4
Neil Desai entered
Shark Tank 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
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
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.
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Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!