You’ve probably seen the Shark Tank shows and wondered what was real or staged. You thought there might be some sort of reality show. Well, it’s not that.
Shark Tank deals are one of the hottest and most important ways to grow your business. They are definitely worth the time and money to do, but why does the exposure matter so much?
Are shark tank deals real or staged?
Shark Tank deals are real and involve real financial investments from the shark investors to the contestants pitching their business proposals. The show is not staged or scripted since investors invest their own money. However, they do further due diligence to verify the facts and figures presented before they invest.
There are also a lot of people who have created their own Shark Tank deals and have been very successful with them.
Some sharks help with their businesses, but most just want to promote their product or service so they can make money from it.
They don’t care about helping your business grow as long as they get paid.
Sometimes it takes time to get someone to agree to be on the show, but if you’ve got something that has potential and isn’t too complicated, the chances are that someone will want to be involved with your project!
How Many shark Tank Deals fall through?
The show has been around since 2009, but what do we know about how many deals fall through? According to the show’s website, only 11% of deals made during season 5 failed due to the Sharks backing out.
However, that number has dropped significantly over time.
In season 1, only 4% of deals fell due to Shark Tank investors backing out. In season 2, it was 8%, while in season 3, it was 10%. So far in season 6, which airs currently on ABC, there have been 7% losses due to the Sharks backing out of deals.
Shark Tank is one of the most popular television shows, and for good reason. The show follows each shark as they try to convince a business owner to invest in their business.
How Shark Tank Does do Due Diligence
They are very thorough in their research and testing of products before they even invest. Even after the invesrirs fight over deals, the sharks on Shark Tank do get along and cooperate to do due diligence, especially on joint deals.
For example, before the company called Ektelon started on Shark Tank, they had already gone through years of research and development in their labs to determine if their product was worth investing in. And yes, it was!
The company had been around for a long time, but it wasn’t until they came onto Shark Tank that they could get their product out there to millions of people who could see how great it was.
Examples of Shark Tank Deals that Prove Real Investments
Real investments are those that have a chance of working out. For instance, a show like the one we talked on the Vabroom Shark Tank update shows that the deals are good.
Many sharks on Shark Tank have made a few deals work out, and it’s not just because they’re great salespeople. They are willing to take risks and back themselves with their own money.
Some examples include:
– A $1 million loan from Daymond John, who made his first deal on the show. (The company was called FUBU because he wanted to make it “for you, by you.”)
– A $250,000 investment for 20% of the company from Barbara Corcoran, who later sold her stake for millions more.
– A $200,000 investment for 10% of the company from Kevin O’Leary, who later sold his stake for millions more.
Instances of Shark Tank Deals that failed
There are many deals that went through the show and doing not so well. Some of the most famous shark tank deals that failed include:
1. The Vitamin Water Deal
This deal was a disaster. The company had been around for years and was known for having an addictive taste. When Vitamin Water went on Shark Tank, they asked for $200,000 for 10% equity in their company.
They could not get the money from Daymond John and Mark Cuban, but they got $200k from Robert Herjavec and Kevin O’Leary before walking away.
2. The Rice Krispies Treats Deal
This deal was also a disaster. The makers of Rice Krispies Treats wanted $450,000 for 10% equity in their company.
They also got $450k from Robert Herjavec and Kevin O’Leary before walking away empty-handed.
3. The Thirsty Crow Cocktail Company Deal
This deal was also another failure by the makers of Thirsty Crow Cocktail Company when they went on Shark Tank looking for $500,000 for 10%.
They got $500k from Robert Herjavec, Kevin O’Leary and Daymond John before walking away with nothing more than their reputation ruined.
4. Jessica Alba and Honest Company
The Honest Company was a hit with consumers, but it was a failure as a business. The company is now defunct, and Alba has been out of the spotlight for years. She’s currently starring in the movie ‘The Honest Truth’ with Robert De Niro, which will be released this year.
5. Lori Greiner and Skinnygirl Cocktails
After launching Skinnygirl Cocktails as a line of healthy alcoholic drinks, Greiner sold her stake in the company to Beam Suntory in 2014 for $200 million.
It was much more than she had invested in the brand, but it still allowed her to keep her name attached to it, thanks to a licensing deal with Beam Suntory.
The brand is still strong today and has expanded its offerings beyond alcohol into coffee and tea products and other food items such as frozen dinners and granola bars.
Most Famous Shark Tank Testimonies
If you look at most Shark Tank reviews, you will realize that the show is practical and real with testimonies and updates in between episodes. Here are some of the most famous shark tank testimonies.
1. Kevin Harrington – He is a serial entrepreneur and founder of the online education company Spiral Digital, who sold it in 2001 for over $100 million.
2. Robert Herjavec – He is an Australian businessman known as an investor on Shark Tank; he was born in Sydney, Australia and married actress Kym Johnson of Dancing with the Stars fame.
3. Daymond John – He is best known as co-founder and CEO of FUBU clothing label and founder of The Hip Hop Chef cooking show franchise.
4. Barbara Corcoran – She is an American businesswoman and reality TV personality who has been on Shark Tank since 2009, where she has made many deals for her products, including her line of hair care products called Babsie’s Beautiful Body Care Products that she currently sells on Shark Tank With Mark Cuban as an investor
I am a freelance journalist in the entertainment industry who currently works as a writer in showbiz. I have a particular interest in TV shows and online programs. I also write on news, ideas, trends, and updates.
