Shark Tank is arguably the most popular business reality show that provides entrepreneurs with a way to raise money. While fans of the show want every company to succeed, not all do! While products like Scrub Daddy and Bombas have been huge successes, others have failed miserably. Below we take a look at some of the biggest flops in the history of Shark Tank.
10 Shark Tank product failures:
1. Respirometer
Breathometer is the first retail breathalyzer for smartphones. It monitors the user’s blood alcohol content via both an app and a physical device.
Serial entrepreneur Charles Yim developed the product and brought it to the fifth season of Shark Tank, asking for $250,000 for 10% equity. He gave a memorable pitch and all the Shark Tanks wanted a piece of the startup.
In a rare move, the five “Shark Tank” contestants agreed to split $1 million in 30% shares. After the deal closed, problems began to arise. The Breathometer had lifetime sales of $5.1 million, but the product was shut down in 2017 after being charged by the Federal Trade Commission with false advertising. Cuban called it his worst deal on “Shark Tank” and accused Charles of poor execution of a good idea.
2. iCapsulate
Next on the list is iCapsulate, a company that gained notoriety for landing the largest deal in Shark Tank history at the time. The company is a maker of biodegradable coffee pods.
The company was founded by Kane Bodiam, an Australian who had a record of misleading business practices before he got on TV. He appeared on the third season of Shark Tank Australia and bought a 15% stake for $2.5 million.
Three Sharks also bid, but Andrew Banks won the 22.5% stake with a $2.5 million bid. He found that iCapsulate was not in any major retail chains and that the $4 million in annual sales was inaccurate, so he did not invest. iCapsulate entered bankruptcy proceedings in 2018.
3. HyConn
HyConn is an ultra-quick connector for fire hydrants and garden hoses that makes connecting them super easy. Firefighter Jeff Stroope invented it after realizing that connecting a hose to a fire hydrant took too long and could cost lives.
He joined Tank in the second season, hoping to get $500,000 in exchange for 40% of the shares. Mark Cuban offered to buy 100% of the company for $1.25 million, and Jeff accepted.
However, the deal was never finalized, as Cuban apparently wanted to license the product and Jeff was against that strategy. Hyconn was able to raise funding with another investor but had trouble generating consistent sales. HyConn folded in 2019 without even generating any meaningful revenue.
4. Toy Garou
Toygaroo was once called the “Netflix of toys,” offering a subscription service that allowed parents to rent different toys. It seemed like a good idea, and the business model looked promising for a while.
The company has five founders, but Nikki Pope is the face of the brand. She pitched the startup in season two and offered a 10% stake for $100,000.
Cuban and O’Leary teamed up to invest $200,000 for a 40% stake. Toygaroo grew too fast to keep up with customer demand. There were too many partners involved and no strategy to successfully scale operations. Toygaroo filed for bankruptcy in 2012, one of the show’s first major failures.
5. Trunkster
Trunkster’s mission is to make traveling easier, and it’s a fully functional smart suitcase. It includes a charging station, GPS system, electronic scale, removable battery, etc. Trunkster was founded by Gaston Blanchet and Jesse Potash. The two joined the show in the seventh season, hoping to raise $1.4 million for a 5% stake.
Mark and Lori took a chance and invested $1.4 million in Trunkster for a 15% stake, but the deal was never completed after the show. Trunkster had $1.5 million in pre-orders on Kickstarter, but most of them were unfulfilled. The company folded due to production difficulties. Angry customers who felt left out discussed filing a class-action lawsuit against Trunkster.
6. Reduce Calories
Minus Cal’s protein bars have an interesting take on weight loss. The founders claim that the healthy snack product blocks fat absorption through a green tea extract called Choleve.
The people behind the product are political commentator Crom Carmichael and musician Barrett Jacques, who pitched it on Season 11 of Shark Tank, asking for $500,000 for a 20 percent share.
However, the Sharks were skeptical of these claims and none of them were interested in investing. Minus Cal did not achieve any substantial sales as customers had no confidence in their product. As of July 2020, Minus Cal is now defunct.
7. Sweet Ball
Sweet Ballz, a delicious ball-shaped candy covered in icing that’s a fun twist on a well-known treat, was founded by pastry-loving duo James McDonald and Cole Egger, who appeared on season five and offered $250,000 for a 10% stake.
Mark and Barbara Corcoran bought a 25% stake for $250,000. However, a heated argument broke out between James and Cole, which led to a lawsuit. McDonald sued his partners because he believed Iger was creating a similar brand called Cake Ballz. Things got so bad that a restraining order had to be issued.
The lawsuit was a huge missed opportunity for them to capitalize on the hype from Shark Tank. The lawsuit was settled, Sweet Ballz reopened, but it’s not doing well. McDonald’s is only selling Sweet Ballz as a hobby, and Cake Ballz is no more.
8. Body Jack
Push-ups are one of the most popular exercises, but they are difficult to do. For this reason, you can use the Body Jac Push-up Assist to help you do this exercise more easily.
The fitness equipment was created by Jack Ballinger, who had struggled to lose weight in the past. Jack had appeared on Shark Tank in season 1 and was looking to raise $180,000 for a 20% stake.
Body Jac reached an agreement with Barbara and Kevin Harrington to invest $180,000 for a 50% stake. For undisclosed reasons, Body Jac closed in early 2013, and Barbara called it one of the worst deals she had ever made. Cactus Jack currently runs a marketing company.
9. You smell soap
You Smell Soap is a premium soap brand known for its vintage-style packaging. These organic soap products are also rich in antioxidants and vitamin E.
Megan Cummins came up with the idea for her startup after a college class exercise. In the early stages of her startup, Megan appeared in season three, hoping to get 20% equity for $55,000.
Robert Herjavec initially offered her the price she wanted, with a $50,000 annual salary attached to sweeten the deal. Robert reportedly changed the deal after the show to take a 50% stake in the company, but Megan refused. You Smell Soap was later sold to an unnamed investor in 2014, but closed down two years later.
10. Don’t use a towel
ShowNo Towels are a combination of a towel and a cape with an opening in the middle. They are often used to help children change clothes in various public places.
The product’s inventor is Shelly Ehler, a creative businesswoman and mother of two. ShowNo Towels was featured on the show in season three, asking $50,000 for a 25 percent stake.
Lori Greiner gave her a check for $50,000 but told her not to cash it. However, the next day Shirley tried to cash it. After completing her due diligence, Lori wanted 70% instead of the original 25%. Shirley refused, and Lori borrowed the money instead.
Despite their rocky relationship, Lori helped secure a deal with Disney, but the deal fell through due to low profit margins. Another deal with Franco Manufacturing also fell through, which was the final straw that broke the camel’s back. Lori and Shirley’s rocky relationship couldn’t last, and ShowNo Towels ceased operations in 2016. Shirley briefly revived the company in 2018, but it closed again in 2020.
Categories: Shark Tank
Source: svlsf.edu.vn