These Shark Tank Companies Were Complete Failures Despite Earning Lucrative Deals With The Sharks

Summary

• HyConn's $1.25M deal with Mark Cuban failed due to disagreements, leading to obscurity.
• Breathometer, a $1M investment deal, collapsed after an FTC investigation due to inaccurate readings.
• Sweet Ballz, a $250k deal, crumbled due to internal disputes and legal battles.

With nearly 50,000 hopefuls vying for a spot each season, snagging a chance to pitch on ABC's award-winning business reality TV series Shark Tank is a dream come true for many small business owners, and it’s not exactly a mystery why.

From Scrub Daddy, the smiley-faced sponge that went on to make over $209 million in sales after landing a $200,000 deal with Lori Greiner, to Bombas, the sock and apparel company that amassed nearly $300 million in lifetime sales thanks to a $200,000 deal with Daymond John, the show has transformed countless startups into multi-million-dollar powerhouses.

However, landing a deal on the show isn’t the foolproof path to success it might appear to be, as companies can still fail spectacularly even after securing million-dollar deals with the ridiculously wealthy sharks. In this article, we’ll spotlight Shark Tank companies that ultimately crashed and burned despite earning lucrative investment deals with the Sharks.

8 What Happened To HyConn After Landing A $1.25 Million Deal On Shark Tank?

Mark Cuban Agreed To Invest $1.25 Million In Hyconn In Exchange For 100% Equity In Season Two

• Jeff Stroope offered 40% equity in exchange for a $500,000 investment in HyConn.
• Stroope accepted Mark Cuban’s offer to buy his company for $1.25 million.
• Stroope was meant to receive a 3-year employment contract plus 7% in royalties in perpetuity.

Fast-connect hose adapter manufacturer HyConn landed the deal of a lifetime on Shark Tank season two after Mark Cuban agreed to invest a whopping $1.25 million in the company in exchange for 100% equity.

Unfortunately, the incredibly lucrative deal went belly up almost as soon as the season wrapped, reportedly due to disagreements between Cuban and the company founder, Jeff Stroope. The company faded into obscurity until April 2024, when Stroope landed a spot as an exhibitor at the Fire Department Instructors Conference.

7 What Happened To Breathometer After Landing A $1 Million Deal On Shark Tank?

Mark Cuban, Kevin O’Leary, Daymond John, Lori Greiner, And Robert Herjavec Invested A Collective $1 Million In Exchange For 30% Equity In Breathometer In Season Five

• Charles Michael Yim offered 10% equity in exchange for a $250,000 investment in his company, Breathometer.
• Charles Michael Yim pitched a device that could measure blood alcohol content using a smartphone.
• The company tanked after an FTC investigation forced it to offer full refunds.
• Mark Cuban later blamed the company’s founder for mismanaging funds.

Following one of the most compelling pitches in the show’s history, Mark Cuban, Kevin O’Leary, Daymond John, Lori Greiner, and Robert Herjavec ended up splurging a collective $1 million in exchange for a 30% stake in Breathometer. The company went belly up four years later after users complained of inaccurate readings, triggering an FTC investigation that forced the company to offer full refunds to all its customers.

6 What Happened To Toygaroo After Landing A $250,000 Deal On Shark Tank?

Toygaroo Secured A $250,000 Joint Investment From Mark Cuban And Kevin O’Leary On Shark Tank In Season Two

• Toygaroo founder Nikki Pope offered 10% equity in exchange for a $100,000 investment in her company.
• Mark Cuban and Kevin O’Leary pooled together $250,000 for a 35% stake in Toygaroo.
• High shipping costs and severe inventory challenges forced the company to shut down years later.

The future seemed bright for Toygaroo founder Nikki Pope after she secured a $250,000 investment from Mark Cuban and Kevin O’Leary in exchange for 35% equity in her 'Netflix for Toys' startup, Toygaroo. However, things took an unfortunate turn a few years later when Toygaroo was forced to shut down due to severe issues with inventory management and high shipping costs.

5 What Happened To Sweet Ballz After Landing A $250,000 Deal On Shark Tank?

Sweet Ballz Secured A $250,000 Investment From Mark Cuban And Barbara Corcoran In Season Five

• Sweet Ballz founders James McDonald and Cole Egger offered 10% equity in exchange for a $250,000 investment in their business.
• McDonald and Egger accepted Mark Cuban and Barbara Corcoran's counteroffer of $250,000 for 25% equity.
• Infighting and legal battles ultimately brought the company to its knees.

James McDonald and Cole Egger scored big on Shark Tank season five after landing a $250,000 investment from Mark Cuban and Barbara Corcoran in exchange for 25% equity in their pastry company, Sweet Ballz. Things took an ugly turn mere days after the pair’s appearance when a fierce legal battle broke out between McDonald and Egger. With the founders preoccupied with court proceedings, the company was unable to capitalize on the cake pop trend and the publicity ensuing from its Shark Tank appearance.

4 What Happened To Body Jac After Landing A $180,000 Deal On Shark Tank?

Body Jac Scored A $180,000 Investment From Barbara Corcoran And Kevin Harrington In Season One

• Cactus Jack Barringer offered 20% equity in exchange for a $180,000 investment in his fitness company, Body Jac.
• Cactus Jack walked away with $180,000 after giving up 50% of his company to Barbara Corcoran and Kevin Harrington.
• Barbara Corcoran has since expressed regret about investing in Body Jac.

Cactus Jack Barringer's appearance on Shark Tank season one turned fortuitous when he landed a $180,000 deal with Barbara Corcoran and Kevin Harrington in exchange for a 50% stake in his fitness company, Body Jac.

Unfortunately, Body Jac had yet to gain traction in the fitness market years after his appearance. During a 2014 interview with Shark Tank Blog, Corcoran revealed that she had lost her investment in Body Jac but did not comment on the exact reasons why the company had tanked.

3 What Happened To ShowNo Towels After Landing A $75,000 Deal On Shark Tank?

ShowNo Towels Secured A $75,000 Investment From Lori Greiner On Shark Tank Season Three

• ShowNo Towels founder Shelly Ehler offered 25% equity in exchange for a $50,000 investment in her business.
• Ehler landed an additional $25,000 from Lori Greiner without having to give up additional equity.
• ShowNo Towels failed to gain market traction and eventually tanked.

When entrepreneur Shelly Ehler pitched ShowNo Towel, an innovative product that allows users to change in and out of bathing suits in public, on Shark Tank season three, Lori Greiner was so enthused that she wrote Ehler a $75,000 check on the spot. However, despite seemingly securing a lucrative deal with Disney after the show, the company failed to gain market traction and ultimately tanked.

2 What Happened To CATEapp After Landing A $70,000 Deal On Shark Tank?

Kevin O’Leary And Daymond John Invested $70,000 In CATEapp In Exchange For 20% Equity In Season Four

• Neil Desai offered 5% equity in exchange for a $50,000 investment in his company, CATEapp.
• Desai accepted Kevin O’Leary and Daymond John’s counteroffer of $70,000 for 35% equity.
• Desai’s deal with O’Leary and John fell apart after the show, and CATEapp ultimately lost momentum.

Neil Desai seemingly scored big on Shark Tank season four after convincing Kevin O’Leary and Daymond John to invest $70,000 in CATEapp, a mobile app designed to hide text and voice messages for privacy purposes. Unfortunately, the deal fell apart shortly after the show aired for undisclosed reasons. Despite amassing 10,000 more users after the deal tanked, CATEapp ultimately lost momentum.

1 What Happened To You Smell Soap After Landing A $55,000 Deal On Shark Tank?

Robert Herjavec Invested $55,000 In You Smell Soap In Exchange For 20% Equity In Season Three

• Robert Herjavec accepted Megan Cummins' offer and invested $55,000 in You Smell Soap in exchange for 20% equity.
• Herjavec unsuccessfully attempted to increase his stake to 50% after the episode aired.
• Cummins eventually sold the company.

Megan Cummins' pitch for her luxury soap company, You Smell Soap, captivated the sharks so much that it sparked a bidding war between Mark Cuban, Barbara Corcoran, and Robert Herjavec. Cummins settled on Herjavec's offer of $55,000 for 20% equity and an additional $50,000 salary for the first year.

Unfortunately, the deal soured after Herjavec attempted to change the terms post-show. Without Herjavec’s investment, Cummins was seemingly unable to capitalize on the momentum from her Shark Tank appearance and eventually sold her business.