Shark Tank bit us back: Deals we struck with our investor heroes fell apart off-air

If you happen to swim with sharks, don’t anticipate a dip within the kiddy pool.

Therein lies a lesson discovered by some entrepreneurs who emerged from “Shark Tank” dispirited, damaged and never solely “lifeless” to the likes of Kevin “Mr. Fantastic” O’Leary (whose normal send-off is, “You’re lifeless to me”) however deep-sixed in a enterprise sense as effectively.

The latest instance of entrepreneurs claiming to be bitten by a shark are Al “Bubba” Baker, daughter Brittani and spouse Sabrina.

Founders of Bubba’s Q Boneless Babyback Ribs, they made headlines after alleging that Daymond John renegotiated their deal–allegedly taking it from $300,000 for 30 p.c on-air to $100,000 for 35 p.c off-air–and iced Bubba out of key enterprise conferences. 

John, in keeping with courtroom papers, known as the Bakers’ allegations a “smear marketing campaign.” A decide granted him a restraining order to cease relations from commenting on him publicly.

Whereas restraining orders are excessive, the Baker relations should not the primary to lick wounds after a “Shark Tank” look goes lower than swimmingly. 

The truth is, regardless of all of the post-deal hugs, Forbes revealed that, from seasons eight via 13, 50 p.c of 112 offers didn’t undergo and 15 p.c of them received altered.

Shelly Ehler, 51. from Oxnard, CA, can relate. When she appeared on “Shark Tank” in 2012 together with her ShowNo towels, which permit youngsters to vary out of swimsuits in public whereas sustaining privateness, she had excessive hopes. 

Particularly since Lori Greiner, making her “Shark Tank” debut, made a take care of her, signed a examine, on air for $50,000, and gave it to her. Greiner even upped her supply on air to $75,000 for 25 p.c. 

O’Leary identified that no shark had ever given cash spontaneously, with out due diligence, and quipped: “You may be an axe assassin.” Greiner hit again: “I do know you’re not.”

The subsequent day, nevertheless, introduced confusion, together with over the examine, Ehler advised The Publish. “My full title was not on it. I didn’t know if it was cashable. My lawyer mentioned Lori ought to ship me $75,000 and that I ought to body this examine.”

Over the months between the present being recorded and broadcast, the 2 got here to a brand new deal, Ehler mentioned, nevertheless it by no means went into impact.

“My lawyer laughed. He mentioned that I might by no means become profitable off this,” Ehler mentioned. Ehler didn’t imagine that Lori was severe concerning the deal and it didn’t go ahead.

Greiner’s spokesperson advised The Publish the shark had put big effort in, manufacturing the towels, passing security rules, and getting them bought in Disney properties “which isn’t simple to do” and which value greater than $75,000.

“Lori flew Shelly and her whole household (all bills paid) to Disney World in Florida, from California so that they is also within the ‘Shark Tank’ observe up,” the spokesperson mentioned. (The follow-up was proven later in the identical season.) 

“Lori and her group labored very onerous for Shelly, as she does for everybody,” the spokesperson mentioned, declining to debate particular particulars due to “mutual confidentiality obligations.”

The break-up between Ehler and Greiner was bitter, with the would-be entrepreneur emailing the shark, describing herself as a “determined individual on TV” whose “largest dream” had died.

Ehler’s spokesperson shared a subsequent letter which Greiner despatched the shark with The Publish, wherein the towel maker apologized and expressed regret for what had occurred between them.

As for Ehler and her towel enterprise, she has moved on, and out of the world of the sharks.

“I don’t suppose Lori meant for this to occur and I’m not bitter,” mentioned Ehler who now has a hypnotherapy practice. “It drove me away from being an entrepreneur. I really like being a hypnotherapist.”

She holds no enmity in opposition to the present. “Shark Tank” showrunner Clay Newbill – who advised Forbes that dealmaking after the present is “between the entrepreneurs and the sharks” – requested Ehler “if I wished to talk to the present psychiatrist. I mentioned I might take free psychiatric classes. They helped.”

As one entrepreneur advised Forbes of the negotiations, “It was extra like speaking to a mortgage shark. The one time it felt like they wished to shut was the handshake on TV.”

However not each deal gone south leaves the entrepreneur within the lurch. Typically the shark lets a great feed swim away. 

When Patrick Coddou and his spouse Jennifer appeared with their Supply razors in 2019—he defined to The Publish that the single-blade security razors give nice shaves and are cheaper than others—they obtained a $300,000 supply from Robert Herjavec.

“However our deal didn’t undergo,” Coddou, 37 and residing in Texas, advised The Publish. “It’s extra widespread than most individuals suppose.”

Nonetheless, showing on “Shark Tank” had advantages. Inside a month of the present airing, the couple bought some $1 million price of merchandise. Then, in 2022, they bought their whole firm. “We nonetheless owned 100% of it,” mentioned Coddou, “which implies that we received 100% of the acquisition value.”

Whereas the sum is undisclosed, he advised Forbes that it was “undoubtedly extra” than they might have realized with Herjavec.

When Vladislav Smolyanskyy appeared on the present together with his Pinblock, which is a a constructing blocks toy, issues had a much less glad ending. At first, after putting a take care of O’Leary, he thought he had obtained a lifeline. Little did Smolyansky know that the severe deal making goes down when the stage-lights flip off and the cameras stop to roll.

“I went on there asking for $100,000 for 20 p.c of the corporate,” Smolyanskyy advised The Publish. “Kevin O’Leary initially provided to do it for 30 p.c” – with, as O’Leary acknowledged on the present, “a contingency of placing it in with a really giant toy firm.”  

Smolynskyy didn’t initially chew on the supply and wished to see what would come from the opposite sharks. “Then everyone dropped out and the deal I made had me gifting away 50 p.c,” continued Smolyanskyy. 

“I used to be sad with the deal, however I made it. I wanted the partnership [plus the cash that came with it] and was keen to do it. I believed that was the top, however the finish was me getting screwed all the best way down the road.”

An enormous stumbling block was O’Leary’s demand that the deal will solely maintain if Smolyanskyy may get the product licensed to an present toy firm. On the present, O’Leary mentioned, “That is your one shot to get within the boardroom of the most important gamers on Earth.”

As Smolyanskyy remembered it, “The phrase he used is, ‘all of them return my calls.’” However he was advised O’Leary went to at least one main toy agency by himself. “It was with out me, and they didn’t see the chance. I by no means received to go in entrance of the board.”

Kevin O’Leary didn’t reply to a request for remark.

True to his phrase, O’Leary dropped Pinblock. However what actually irked Smolyansky is that, past not getting the deal, he didn’t get O’Leary. He claims to have by no means dealt instantly with the Shark – which, he says, may need allowed him a chance to salvage the state of affairs. 

As an alternative, he had all of his conversations with an O’Leary colleague: “He was not O’Leary and he was not the shark I struck a take care of.”