'Shark Tank' contestant pitches wild app that helps couples cheat, but still walks away with $70K deal
A 'Shark Tank' contestant managed to get a deal in his kitty even after facing heavy criticism for his app. While appearing on an episode of 'Shark Tank' Season 4, Neal Desai pitched his company, Cate App, an application that allows users to conceal their text and voice messages on their mobile phones, in front of the esteemed Sharks Mark Cuban, Kevin O'Leary, Daymond John, Robert Herjavec, and Barbara Corcoran. In the episode, Desai was seeking $50,000 in exchange for a 5% stake in his company. Herjavec described Desai's product as a "cheater's app," questioning its morality, but it did not stop the other Sharks from offering him a deal.
At the onset of his pitch, Desai said, "Now, whether or not we like it, we all know someone who's been cheated on, been accused of cheating, or who's actually cheated. Let me show you a situation that actually happens to millions of people every day." The young entrepreneur then played a clip showing a husband getting a text from an office worker as he lay beside his wife. His wife immediately snatches the phone, reads the text, and the husband's cheating act is revealed. The video left the judges in splits, and O'Leary said, "Tell me more." Desai replied, "Well, Cate helps prevent fights like this simply by keeping your indiscretions discreet. Quite simply, Cate is a smartphone application, and with it, you select a blacklist of contacts, and if those contacts call or text you, Cate will intercept those calls and texts and store them within its interface."
Continuing with his unconventional pitch, Desai said, "So even if your significant other is looking directly at your phone when blacklist contacts text you, she'll have no idea it happened. Let's just say if Tiger had Cate, he might still be married to Ellen," inviting more laughter from the judges. "It's been estimated that 80% of marriages have at least one cheating partner, for real. We like to say love is blind. We keep it that way," Desai added. Herjavec entered the conversation by telling Desai that this is a "cheater's app." Desai responded by saying, "But in reality, it's a privacy app."
But Herjavec countered, "Well, let's call a spade a spade. It's a cheater's app," and Desai agreed. "I'm okay with that. It's a cheater's app," he said, scanning for any potential offers he might get. "Why did you develop this? You don't seem like the cheater type of guy," John questioned. Desai responded with, "You are correct. But I didn't actually develop the app. What I've done pretty much since I was 14. I was a hustler. I sold Pokémon cards on eBay. I went to college, did the four-year degree thing, but I couldn't get a job I really wanted. Went back to Pokémon cards. I found a guy selling this app, turns out to be a cop."
Shortly afterward, Desai mentioned that he bought the app for $17,500 and shared that it had already amassed 5,500 subscribers at a subscription cost of $4.99. Without wasting any time, O'Leary got down to business. "I'm gonna give $50,000 for 50% right now. Let's go," he told Desai. John offered to join him as a partner on the same deal. But Desai insisted that he'd like to hear the other offers first. Cuban backed out, saying that he didn't like the app. Herjavec was the next to drop out. Corcoran, however, made a counteroffer, dropping to 25% for $50,000. Eventually, Desai sealed the deal with O'Leary and John at $70,000 for 35%.