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Founder Zahra Kassam appeared on Shark Tank in season 10 episode 12, which aired on January 27, 2019, to pitch her early childhood education toys subscription, Monti Kids. The company was geared towards an early learning system for kids from birth to the school-age years.
The Harvard graduate had raised over $2.8 million for her company. Almost all the money raised was used up in the process, and the venture also burned over $90,000 a month.
Shark Robert Herjavec was surprised that despite all the losses, the founder had a smile on her face. While he described the company's progress as a "horrible story," he was charmed by Zahra's "captivating" character.
He told the founder that she seemed to overlook the harsh reality of how difficult it is to acquire such significant funds, especially after exhausting almost all of her early investment prematurely. Herjavec further remarked that, upon evaluating the situation, he believed she was ultimately "lacking discipline."
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"So you have a great degree; Harvard sounds really fancy. But you missed one school. You didn't go to school hard Knocks. Somebody like you who burns through 2.6 million like that tells me you miss a reality in life of how hard it is to get that kind of money. You know what you're missing? You're missing discipline," he said.
Monti Kids on Shark Tank: Zahra Kassam secures a deal with Kevin O'Leary after intense negotiations
Zahra Kassam pitched her early childhood education toys subscription, Monti Kids, on Shark Tank in season 10 episode 12. She sought a $200,000 investment in return for 2.5 % equity in her company.
"Sharks, 85% of the brain is formed by age 3. Research shows these early years are the most critical for learning, yet most children under 3 aren't even in school yet. They're at home, leaving their parents and guessing how to support their baby's development. That's why when I became a mom, I created Monti Kids for my kids," she pitched.
The Shark Tank contestant further explained that Monti Kids was a comprehensive learning program designed to fill the gap from birth to the school-age years. It was inspired by the Montessori method and was specifically designed to be simple and convenient for families to use at home.
The families could subscribe anytime between pregnancy and age 3. Every three months, they would receive a box of Montessori toys tailored to their child's stage of development.
The program featured eight levels, each lasting three months. With all the content provided for parents, the annual subscription was priced at $297, while the production cost was $120 per unit.
The founder shared that at the time of filming for the Shark Tank episode, the company had been selling for 14 months, had done over $550,000 in sales, and was growing "20% month over month".
Zahra had raised $2.8 million for her venture. Of all the investments the company had initially gathered, only $200,000 was left in the bank. She further mentioned that they were burning about $95,000 a month and had a team of six people.
While the sharks were fascinated by the founder's enthusiasm for her company and its concept, they believed it was burning off way too much money. Due to its lackluster growth and loss, Mark Cuban, Lori Greiner, and Daymond John declined to invest in the company.
However, Robert Herjavec showed interest in Monti Kids' and believed there was a market for the venture.
"Because of your incredible ability with this crazy story... I wanna be in on it. I think there's a market out there... I love the market. I love where you're going. I know how hard it is to raise money. I know how to get revenge. You gotta ramp up the revenue," he told the founder.
He offered $200,000 for 10% of her company and a seat on the board. Herjavec believed in the company and felt he could help run things for the better.
Zahra initially expressed interest in closing a deal with Herjavec; however, after some back-and-forth negotiations, the shark decided to step away. By the end of the Shark Tank segment, the founder secured a deal with Kevin O'Leary, who offered $200,000 for 2.5% equity plus a $2.50 royalty per unit until $600,000 was repaid.
Shark Tank season 16 episodes air every Friday on ABC.
