Why I Hate “Shark Tank”: Horror Stories and How It Misses the Mark

The television show “Shark Tank” is hugely popular right now, particularly with entrepreneurs – many of whom are my friends. (Though I’m still a huge Mark Cuban fan, for his brilliant business brain! I even drive by his house on a regular basis for inspiration since it’s so close to mine.)

What is Shark Tank Exactly?

If you haven’t seen it, it’s a reality show where budding entrepreneurs present their ideas to wealthy investors like Mark Cuban and Barbara Corcoran with the hope of securing their investments.

While there’s nothing wrong with the technical side of the show (production, etc.), it just makes my skin crawl for a number of reasons.

First of all, I’m not a believer in venture capital. I’m part of the Henry Ford school of thought that a business should be built up over time from its own profits, earned through delivering excellent service to customers.

I’ve read the thoughts of Felix Dennis (owner of Maxim magazine and many other publications) on how you must absolutely, positively retain 100% of your business and avoid getting mixed up with venture capitalists like the plague. He calls them “dolphins” because dolphins are cute to look at but are actually one of the most violent, vicious species of animals on earth. He says to shop banks, ask for loans from relatives and friends if you must, but never, ever give even 1% of your business to a venture capitalist.

And then there are the horror stories I’ve witnessed and heard from my own personal friends, who have been to hell and back with these people.

But Let Me Tell You Why I REALLY Hate “Shark Tank”…

If you’ve seen the show, these people are up there, humiliating themselves on camera in front of millions of people, practically BEGGING for money!

Interestingly, when I did a recent Google search on “cold calling” I came across some articles about the fact that venture capitalists do plenty of cold calling themselves!

They’re fully aware of who the successful start-up businesses are, and they WANT a piece of them. THAT is why they cold call the owners of those start-ups, and pitch them the idea of taking on venture capital!

The dummies on “Shark Tank” usually go nowhere because they’re up there, begging for money, while the real money is out looking for people who are ALREADY successful.

The Venture Capital Trap

One of the biggest issues with Shark Tank is its portrayal of venture capital as the ultimate solution for entrepreneurs.

The show glorifies receiving funding from wealthy investors as the primary means to grow a business. However, this isn’t always the best approach. Henry Ford, one of the greatest entrepreneurs in history, believed that a business should grow from its own profits, built through delivering value to customers. Relying on venture capital often means giving away large portions of your business and losing control over decision-making.

Felix Dennis, the publisher behind Maxim, shared a similar sentiment. He referred to venture capitalists as “dolphins”—appearing friendly on the surface but potentially dangerous. Dennis advocated for retaining full control of your business and avoiding the pitfalls of venture capital. His advice resonates with me because I’ve seen numerous entrepreneurs fall victim to this funding model, losing both creative freedom and financial independence.

The “Begging” Culture

What makes Shark Tank particularly frustrating is its portrayal of entrepreneurs as desperate individuals begging for money. In reality, venture capitalists often seek out successful businesses, not the other way around. They cold call business owners with a proven track record, hoping to invest in something that’s already working. The narrative that entrepreneurs need to grovel for investment is disheartening and misleading.

The begging mentality on Shark Tank also mirrors the outdated sales technique of cold calling. Just as ineffective salespeople cold call without strategy, entrepreneurs on the show pitch themselves to investors with little more than hope. Meanwhile, successful salespeople attract leads through strategic marketing and relationships, just as successful businesses can attract investors without begging.

The Myth of Guaranteed Success

While Shark Tank presents deals as game-changers, the reality is often different. Many of the deals made on the show fall apart once the cameras stop rolling. Due diligence exposes flaws that weren’t apparent during the pitch, and deals are renegotiated or abandoned. Furthermore, even when deals go through, entrepreneurs often find that the pressure from investors changes the course of their business in ways they hadn’t anticipated.

Shark Tank Horror Stories

Several entrepreneurs have shared their negative experiences after appearing on Shark Tank. These horror stories highlight the potential downsides of the show’s format:

• Cup Board Pro: Keith Young’s children appeared on Shark Tank to pitch their father’s invention, a cutting board with a built-in cup for easy cleanup. After receiving a deal from all five sharks, the story took a darker turn. Young passed away from cancer before the episode aired, and while the product did see success post-show, the family faced intense pressure to meet the demands of scaling up.
• Show No Towels: Shelly Ehler, the creator of Show No Towels, secured a deal with Lori Greiner. However, she later revealed that Lori backed out of the deal post-show, leaving Ehler disillusioned with the process. Ehler had invested time and energy into working with Greiner’s team, only to have the deal fall apart, resulting in financial and emotional strain.
• ToyGaroo: Often referred to as the “Netflix for toys,” ToyGaroo was a toy rental subscription service that secured funding from Mark Cuban and Kevin O’Leary. However, the company went bankrupt shortly after its Shark Tank appearance, illustrating the dangers of scaling too quickly and relying too heavily on investor funding.

These stories demonstrate that appearing on Shark Tank doesn’t guarantee success. In fact, for some entrepreneurs, it can be the beginning of a stressful journey filled with broken promises and financial struggles.

Building a Business Without Venture Capital

There is a different path to entrepreneurship that doesn’t involve venture capital or the spectacle of Shark Tank.

Bootstrapping – building your business gradually by reinvesting profits—allows you to maintain full control of your company. This method forces entrepreneurs to be lean, efficient, and focused on customer satisfaction. Without the pressure of external investors, you can grow your business at a sustainable pace and stay true to your vision.

Wrapping Up

Likewise, salespeople who are not successful and have no clue what they’re doing are also out BEGGING for sales. They’re cold calling, and cold calling equals begging.

While they’re doing that, qualified prospects, who have an immediate need to BUY, are calling or emailing successful salespeople who know what they’re doing, and who know how to get themselves exposed to those hot prospects.

Nearly everyone who goes on “Shark Tank” or who otherwise contacts a venture capital firm looking for money, is denied.

And it’s the same with cold calling. The answer isn’t to cold call. It’s to use effective, Information Age, self-marketing systems and methods that work.

And what are those methods?

That’s for me to know and you to find out!

Sorry, just kidding, but I couldn’t resist……..

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