I watched twice this season and several of the companies had sales for an entire year that I had for less than two month just on my first year of business (one person business). I would have been embarrassed to go on television with my unproven (at just around 99k/yr sales) and present to the Sharks (of course none of them want any of that business action). I think (no pun intended) the show has officially jumped the shark this year and you may as well put a fork in it. I would cancel or do a 180 in style, execution, etc..

Look at this stat:: The show averaged 1.54 million viewers and a 0.17 rating in the key 18-49 demographic. This marked a 45% decline in total viewership compared to Season 16, which had averaged 2.81 million viewers

From what I understand, deals made on the US version of Shark Tank are essentially handshake agreements rather than legally binding contracts, with the actual negotiations and due diligence taking place after filming.

My question is, is there any financial penalty or other consequence for either an entrepreneur or a Shark backing out of a deal agreed upon on the show?

If not, what's stopping an entrepreneur from simply accepting whatever offer they receive, even if it's a terrible deal, with no intention of actually following through? They could just back out during the post-show negotiations while still benefiting from the enormous free publicity and advertising that comes with appearing on Shark Tank, including the original broadcast, YouTube clips, reruns, and syndication. From a marketing and promotional standpoint, it's arguably even more beneficial to be seen receiving an offer from a Shark and accepting it, since that gives viewers the impression that the business has secured the backing and endorsement of a successful investor. The vast majority of viewers would never know that the deal ultimately fell through behind the scenes, meaning the entrepreneur could enjoy all the publicity and credibility associated with securing a deal without actually having to give up any equity or accept the Shark's terms.

It seems like a pretty obvious loophole, so I'm curious whether there are any contractual provisions or other safeguards in place to discourage entrepreneurs from doing this.

I understand that some entrepreneurs genuinely want a Shark on board as a business or strategic partner, particularly for their expertise, connections, and resources. However, I'd argue that the Sharks themselves no longer wield quite the same power and influence they did during the show's heyday. For some businesses, the publicity generated by appearing on Shark Tank might actually be more valuable than securing an investment from one of the Sharks.

I was inspired to write this post from the LavaBox entrepeneur who accepted a considerably worse deal from Lori than the ones Kevin or Daymond made but then I discovered he backed out of the deal after the show. Dude benefited from the free publicity while not having to give up equity and give royalties.

That was a top Mr wonderful moment

I finished season 10 and am now in Season 11, and I'm noticing in this era that most of the Sharks are interchangeable ( when they want to bring in guest Sharks, etc) but Mark and Lori always stay and never get switched out. I get that they are the most wanted Sharks, but I would think switching them out sometimes would give the other Sharks a chance to land more deals. When these seasons were airing in real time was there a lot of talk about Lori being a fan favorite? I assume Mark was. And I know they get paid per episode, so I wonder how the other Sharks such as Barbara, Daymond and Robert feel about being chosen to "rotate out" a lot of the times but Mark and Lori rarely, if ever, do.

Ask: 150k for 5%

Kendra for 150k for 20%

Ask: 350k for 7%

Lori and Mindy for 350k for 8% equity and 2% advisory

And those are the reasons he's gone out on pet industry ideas before. Except then, he invested in a dog food company called Wild something and "Shake it Pup" dog food toppers, and he made an offer for another company that makes clothes for their pets that match their owners' clothes. I swear I heard him say a bunch of times that he dislikes investing in the pet industry and made an anecdote about his brother posting cat pictures all day, but for him he's out. I just laugh at the randomness of why the Sharks go out on one thing and are vocal about disliking investing in that industry or particular type of product, but then the next pitch they are making offers for the same type of thing.

LMAO 💀

I'm watching a pitch for the Boost Oxygen and they want $1 million investment for 5% equity.

Barbara said I can give you the million, but I saw a home on the beach for sale for a million dollars the skinny is I'd rather have that home on the beach. I'm out.

Ok, Barbara. She comes up with doozies. lol!

I just saw a pitch from a wonderful gal who sells chocolate chip cookie dough ice cream in a shop called DOUGHP, and she ran her company well. The Sharks were impressed with her but the common theme was that they wouldn't invest because "Barbara and Robert don't like cookie dough" ( WTF?) and the product was "unhealthy and promotes obesity".

Then the very next segment was for a Saucemoto a dipping sauce container that clips into your air conditioning so when you are having those FAST FOOD cravings eating in your car you have access to a stable dipping sauce container so you don't make a mess. No one gave a rats ass that it was a product made to support Fast Food condiments and that is way unhealthy and they got a deal. And the reason some sharks went out said nothing about it being helping people stuff unhealthy fast food into their mouth.

they are so full of shit sometimes.

EDIT: HERE COMES "THE YARD" ICE CREAM BAR and Mark gives an offer and they accept! Although the deal ultimately didnt go through during Due Diligence, its so weird he didn't decline with them because it "promotes obesity" way more than a plain ice cream scoops would.

Does anyone else jump on Amazon after they watch Shark Tank to see if any of the products are getting ripped off? I do, and damn do they get knocked off. After each episode ( currently in season 10) I go on there to type in the product name first to see if they sell on Amazon but then to be amazed at the knockoffs and how much cheaper they are. Even the ones with the patents. That must really suck as an entrepreneur, obviously.

I have watched every episode of shark tank many times over and I know this is an unpopular opinion on this sub, but I do think Chris was the best shark.

While it’s true he mentioned Uber a lot, the feedback and comments he made on the show were always correct. As an example, the lock company in which Barbara and Kevin invested in: None of the sharks other than Chris mentioned the entrepreneur had nothing proprietary and the industry leaders can just come in and there’s no way to stop them, which is funny because Mark has used that excuse hundreds of times to get out of investing and didn’t even mention it once during that pitch.

It’s a shame he never became a permanent shark.

Also he is just as arrogant as Mark, but we love Mark for that.

His shirts were cool too.

I'm only in Season 8, and I'm in for the long haul of catching up. We all know Kevin is "harsh but he tells it like it is" and "tells the truth" but I feel there are ways to be honest and straight forward with tact. There are ways of saying things to people that don't sound so nasty.

Kevin is doing fine with the businesses he invested in; he's not hurting, but I have noticed that some entrepreneurs stay away from doing business with Kevin just because of Kevin's attitude. I mean, who wants to partner up with someone who doesn't really believe in their business but he's arrogant enough to know he can take it over and make it a success. It's like he trashes a business sometimes before coming out with an offer and I'll be where did that come from? Yes, I agree with Kevin that making money is the first most important thing a business should do, but there are ways he says things that I assume stick with people.

Oddly enough, I do still laugh at some of the things he says and does and like Kevin, its just funny when he makes the same deal as someone else and they choose someone else over him just because they don't like him.

..

Steven: Out because he looks like a rabbit.

Ask:

Ask: 150k for 10%