Shark Tank’s brand of TV has turned entrepreneurship into a spectator sport, introducing millions to the high-stakes world of startup investing. In a matter of minutes, entrepreneurs pitch, negotiate with savvy investors, and leave with a deal that seems life-changing if they get lucky.
But what follows once the cameras turn off? Does that handshake close the deal? But more so, does that guarantee success?
Let’s go behind the scenes and find out what actually happens after founders sign on the dotted line on shows like Shark Tank—and what other entrepreneurs can learn along the way from their TV-to-real-life journey.
1. The Deal Isn’t Always Final
The most common myth concerning Shark Tank and other reality shows of the genre is that all of the deals struck on the show actually come into fruition. Far from it: Most of the deals blow up in due diligence—the frenzied period when the investors scrutinize the company’s books, legal status, and potential for growth.
At this point, investors can identify inconsistencies, unfounded claims, and terms and valuation discrepancies. Investors, in some cases, decide to back out after they are presented with alternative offers or reconsider their equity giveaway.
According to previous participants, barely 40-50% of transactions on the air close—a reminder that whether or not one gets a “yes” on the air does not always translate to capital.
2. Due Diligence Can Be Eye-Opening
It is not a technicality for entrepreneurs—sometimes, it is a wake-up call. Investors get into the nitty-gritty of:
- Revenue numbers
- Customer data
- Supply chain agreements
- Intangible assets
- Legal compliance
- Team dynamics
If a business is disorganized or unrecorded, it is soon apparent. Some entrepreneurs are forced to reconsider their operations in the face of scrutiny, and others are directed to install better systems prior to the release of funds.
For those who succeed in passing the test, the money becomes more than monetary—it becomes a seal of approval.
3. Operational Growth Isn’t Glamorous—It’s Gritty
After the transaction is complete, reality catches up. It is easier to sell a company than to build one. Whether you are adding inventory, adding staff, adding retail, or adding manufacturing, each move has fresh pains.
The majority of Shark Tank alumni have remembered how their lives after the show were filled with sleepless nights, unaccounted costs, and pressure to perform better with higher expectations from customers and investors.
Financing provides a company with the fuel, but it’s the implementation that will decide if the firm will soar or crash.
4. Not all sharks are equally engaged
Another surprise for most is that not all of them are as active after the show. Some Sharks are actively involved as mentors, opening doors, facilitating deals, and providing strategic guidance. Others are not as active, calling occasionally or utilizing their employees to manage communication.
For the entrepreneur, the secret is knowing how to take advantage of the contact. Seeking guidance, employing the investor’s name to lend credence, and tapping into their network can be extremely impactful on expansion following the show.
5. Sudden Fame Has Its Pluses and Minuses
A Shark Tank placement gives instant exposure to millions of individuals. Companies experience the “Shark Tank Effect—spike in website traffic, product sales, and media coverage in the pre- and post-show timeframe.”.
For some, it’s a blessing: orders come flooding in, partnerships are established, and overnight customer trust is gained. But for others, the rush reveals weaknesses: anemic inventory, poor logistics, or customer service jams.
Preparation is key. The winners are the companies that prepared for the traffic boom, ramped up their back-end systems, and moved fast to accommodate customer feedback.
6. The True Test Is Long-Term Sustainability
Despite funding and exposure, not every Shark Tank business is successful. Some grow too fast and exhaust themselves. Others fail in product development, competition, or market changes.
But great entrepreneurs invest time in honing their vision, refining their product, and building lasting teams.
Companies such as Bombas, Scrub Daddy, and The Bouqs Co. became household names—not simply due to Shark support, but because they executed consistently, innovated strategically, and took loyalty into consideration.
7. Founders Out of the Tank Lessons
Even if you never stepped foot on a strobing-lit soundstage with beaming investors, you can take a cue from the Shark Tank veterans’ post-funding experiences:
- Know your numbers: Expect to be asked questions. Investors seek facts, not fantasies.
- Plan to use the money: What are you going to do with the capital—hire, make, grow?
- Build infrastructure in advance: Operations, customer service, inventory—these have to expand along with your vision.
- Invest in smart money: Money is wonderful, but mentorship and connections are gold.
- Keep your wits about you: Hype dies. What remains is your ability to run a great business.
Final Thoughts: Beyond the Pitch
The genius of Shark Tank is that it makes us believe. It makes us believe that outlandish notions and bold businesspeople can get funded. But it also reminds us of something more profound—funding is just the beginning. The real drama is off-stage: in factories and warehouses, in product labs and Zoom meetings, in shareholder presentations and customer mailings. For entrepreneurs, the lesson is clear. A deal can initiate the introductions—but only determination, tenacity, and self-discipline can build an empire.