Tabby – The Cat Person’s Dating App
DEAL
EPISODE SUMMARY
🕓 Air Date: October 29, 2021
Asking For:
$300,000 for 20%
Investor:
Kevin O'Leary
Deal:
$300,000 for 30%
PRODUCT SUMMARY
Tabby is a dating app specifically designed for cat lovers, providing a space for people to connect based on their love for cats.
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Background Story
Tabby’s origin story traces back to the vibrant city of New Orleans, where three passionate individuals, Nathan, Sterling, and Leigh, embarked on a unique journey. Prior to Tabby, their entrepreneurial spirit had led them to develop a successful venture called Dig, a dating app tailored for dog enthusiasts. However, it was their keen awareness of the unmet needs of feline aficionados that set the stage for Tabby.
Recognizing the challenges faced by cat lovers on conventional dating platforms, where stigma often surrounded their love for feline companions, Nathan and Sterling decided to take action. Both being prominent figures within the cat community, their combined expertise and deep connection with the world of whiskers inspired them to create Tabby.
The pivotal moment arrived when Tabby secured the Million Dollar Dating Project grant, a game-changing opportunity that provided them with $50,000 in equity-free funding. Armed with this financial boost, they set out to launch Tabby, a dating app designed to foster connections among cat enthusiasts. Their mission: to build a safe and inclusive space where individuals could bond over their shared love for feline companions, breaking free from the constraints of conventional dating norms.
The Product
Tabby’s product is a unique fusion of traditional dating app features with a feline flair. At its core, it operates like any standard dating platform, enabling users to engage in the familiar ritual of swiping left or right to express their interest in potential matches. However, Tabby goes beyond the ordinary by weaving in cat-centric elements that resonate with its target audience of cat lovers.
One distinctive aspect of Tabby is its inclusion of cat-specific inquiries. Users are prompted to share insights about their feline companions, such as their monthly expenditures on their cats and whether these beloved pets have the privilege of sharing their beds. These tailored questions not only facilitate meaningful conversations but also strengthen the bonds formed among cat enthusiasts.
Moreover, Tabby offers an inviting digital haven known as “The Cat Tree.” Within this community space, users can congregate to exchange tales of their feline friends, recommend cat-friendly locales, and even propose unique date ideas centered around their shared passion for cats. It serves as a welcoming sanctuary where cat aficionados can connect on a deeper level, transcending the superficiality often associated with mainstream dating apps.
How It Went
The company’s position before Shark Tank
Tabby’s journey in the competitive world of dating apps was marked by resilience in the face of initial challenges. The launch, unfortunately, took place on a platform that lacked mobile-friendliness, leading to a series of technical hurdles. However, even amidst these obstacles, Tabby managed to attract an impressive user base, amassing a commendable 31,000 users. This user engagement translated into tangible financial success, with Tabby raking in $43,000 in revenue.
The revenue breakdown showcases a diversified income stream, with $17,000 flowing in from subscription fees paid by users who valued the platform’s unique cat-centric approach. An additional $25,000 was contributed by a strategic integration partner, reflecting Tabby’s ability to forge productive collaborations within the dating app landscape. Remarkably, Tabby achieved these milestones with no external financial backing beyond the initial grant they received from the Million Dollar Dating Project.
Undeterred by the platform’s technical limitations, the team was dedicatedly focused on enhancing the user experience by developing a new and improved version of Tabby. However, a significant turning point arose when their contract with the original platform was prematurely terminated. This abrupt change prompted Tabby to seek external investment, fueling their determination to evolve the app and solidify its position as the premier dating platform for cat lovers.
The Negotiations:
The negotiation phase for Tabby in the Shark Tank proved to be a pivotal moment for the founders, Nathan, Sterling, and Leigh. They entered the tank seeking a $300,000 investment in exchange for 20% equity in their cat-focused dating app. Kevin O’Leary was the first to make an offer, proposing $300,000 for a higher equity stake of 30%. He emphasized the potential synergy with his existing cat-related investment, Basepaws, highlighting the prospect of collaborating and leveraging a vast cat database.
Nathan and Sterling, clearly appreciative of Kevin’s offer, attempted to negotiate a slight reduction in equity, proposing a 25% stake. However, Kevin stood firm, declining the counteroffer. Lori Greiner, known for her empathy towards entrepreneurs with a passion for animals, expressed her support for Tabby’s mission but opted out of the deal, citing her limited expertise in the tech app industry. Nirav Tolia, the founder of Nextdoor, offered valuable insights about the challenges of building and growing an app. He emphasized the difficulty of gaining traction in a highly competitive market and ultimately declined to invest.
In a surprising twist, Robert Herjavec, recognizing the potential of Tabby, made a compelling offer of $300,000 for 30%, aligning with Kevin’s initial proposal. This alignment with Kevin’s investment showcased a strong desire to create a cat-centric empire. Nathan and Sterling promptly accepted Robert’s offer, eager to join forces and leverage his expertise and resources. The negotiation concluded on a positive note, with the Tabby team securing the investment they sought and looking forward to working with Robert to propel their cat-loving dating app to new heights.
