Winning on 'Shark Tank' can appear like an example of the American Dream, but some of the show's winners don't always end up with the rewards that they expect and agreements with the sharks fall through after the cameras turn off.
Aaron Krause, chief executive of the sponge company Scrub Daddy, has not wiped away one second of his 90-minute "Shark Tank" pitch from his memory. In 2012, he stood under the television show's stage lights, sweating as he prepared to fire off his business plan after months and months of phone calls and auditions.
Krause's rapid-fire presentation sparked a bidding war between investor Kevin "Mr. Wonderful" O'Leary, Fubu founder Daymond John and "Queen of QVC" Lori Greiner. It was Greiner who won Krause's signature. They hugged and smiled. Krause gleefully walked offstage telling the cameras it was a "dream come true."
But some of the show's winners don't always end up with the rewards that they expect and agreements with the sharks fall through after the cameras turn off. Each shark then has a "business person" talk to the winners about next steps, which includes a due diligence report that will look at the company's books and "make sure all they said in their pitch is actually true," Cuban said. After the final agreement is inked, investors will begin having phone calls and meetings, as with any other investment partnership, Cuban said.
Cuban doesn't try to change his deals unless something in the due diligence reports comes up - like the amount of debt might be uncovered after the fact, which changes the value and economics of a business, he said.Not all relationships between sharks and business owners go swimmingly.
"Their belief that they can unwind poor business decisions through slanderous social media posts and articles will no longer be tolerated," he added.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Coinbase needs new CEO after SEC fail: Kevin O'LearyInvestor and Shark Tank star Kevin O’Leary says he’d get rid of Coinbase CEO Brian Armstrong and find someone willing to work with the Securities and Exchange Commission.
Read more »
Shark attack victim honored by Florida community, given gift certificate to buy new surfboardFlorida teenager Ella Reed survived a scary encounter with a bull shark last month. The 13-year-old girl was in the water at Fort Pierce Inlet State Park in May when a bull shark bit her arm, stomach, finger and knee.
Read more »
Shark attack in Egypt kills a Russian citizen | CNNEgyptian authorities have banned swimming near a beach at an Egyptian Red Sea resort following a deadly shark attack that killed a Russian citizen on Thursday, according to Egyptian and Russian officials.
Read more »
C.J. Mosley embracing big Jets expectations that come with Aaron RodgersThis is a team that has not been to the playoffs in 12 seasons and has one Super Bowl appearance, which came a few months before man walked on the moon.
Read more »
'The Meg 2' Producer Promises More Creatures, Shark Attacks, and Humor'The Meg 2' producer promises more creatures, shark attacks, and an even bigger bite of humor.
Read more »
Graphic videos show tiger shark's attack on man swimming in seaThe shark circled the Russian man before attacking him and dragging him under the water.
Read more »