Shark Tank, the US version of Dragon’s Den, recently hit a historic landmark when the last episode took the total investment by the Shark Tank entrepreneurs to more than $100 million. It may have taken eight seasons and more than 350 on-screen deals but this is a significant landmark for any entrepreneur business. Surprisingly, the program was initially something of a flop although when momentum began to build the audience began to flock. So, what can we ascertain about the world of entrepreneurial reality TV from the success of Shark Tank?
Not all deals are sealed
In what now seems to be par for the course for reality TV business program such as Dragon’s Den and Shark Tank many will be surprised to learn that only around 50% of the deals struck on air are actually sealed. They can fall apart for many different reasons such as due diligence, changes in the detail or surprisingly those entering the Shark Tank can simply walk away after the programme has been recorded. Many people were under the misconception that all deals agreed on TV were actually entered into when the cameras stopped rolling.
Prime-time promotion for entrepreneurs
At the end of the day these reality entrepreneur programs give both members of the Shark Tank and businesses on the show the chance to promote their wares. There are obviously various confidentiality agreements to protect the content of individual shows before they are aired but ultimately, as we have now found out, nothing is set in stone even if hands are shaken on the set. It is also known that these types of programs have helped to incentivise a whole new generation of entrepreneurs looking for that one new idea which will change their life. At the end of the day, surely this is the overall aim of this capitalist gameshow?
Successful investments
There have been some sizeable investments over the years by those chosen to sit in the Shark Tank such as the $5 million investment in Zero Pollution Motors, a revolutionary vehicle fuelled by air. As it happens this deal fell apart once the cameras stop rolling but the airtime this gave to the company proved invaluable.
We also saw a $3 million investment agreed with the CEO of a synthetic human tissue and body parts company called SynDaver. Again, this particular transaction also fell apart once the cameras stopped rolling but it did push the idea of synthetic human tissue and body parts into the public domain. This is an area of industry which has grown significantly over the years and the oxygen this type of publicity creates is priceless.
Aggressive entrepreneur Kevin O’Leary invested $2.5 million for just 10% of Zipz Wine which was a single serving wine company. The idea of serving single glasses of wine, sealed to maintain their flavour, was revolutionary at the time although has been replicated in other areas of the world. It is believed that this particular deal did go ahead but may have been subject to some changes after the show.
Conclusion
Some people will be disappointed to learn that many of the deals agreed on air often fall apart once the cameras stop rolling. Let’s not forget this is reality TV and these things do happen, however, there are some exceptional business ideas promoted along the way. Here’s to the next $100 million!