From ToyGaroo to evREwares, learn about some products from Shark Tank that failed to live up to the hype.
Shark Tank Products That Failed To Live Up to the Hype
Highlights
- ToyGaroo went bankrupt even after bagging a joint deal on Shark Tank.
- Despite securing an all-Shark deal, Breathometer turned out to be a big letdown from Shark Tank.
- A prominent panelist on Shark Tank bought the entire evREwares business; the business shut down in 2015.
One cannot deny that the innovative ideas and excitement of the Sharks are infectious. Both things together compel the viewers into believing that certain Shark Tank products are set to script a new success story. This is how hundreds of Shark Tank episodes have offered its audiences immersive experiences.
Through these, the viewers do not just watch an entrepreneur presenting a pitch but enjoy their success if they get a deal. It is due to the same reason that different Shark Tank products create an unmatched hype. The results, though, often turn out to be the opposite.
From ToyGaroo to evREwares, below are some Shark Tank products that failed to live up to the hype:
1. ToyGaroo
Brought to the judges by Nikki Pope, ToyGaroo was one of the most talked about Shark Tank products in the second season. The Sharks were so impressed by its concept that three of them jumped into the intense negotiations. However, both the panelists and viewers were shocked when the venture closed within a year of its appearance on the show.
The entrepreneur made their way to the judges seeking $100K for 10% equity. Explaining the business model, she said that by paying a subscription fee, parents could sign up on ToyGaroo’s website, add toys to their wishlist, and then get them delivered.
Having appeared along with her husband, she stated that she owned only 10% of the business; the remaining 90% belonged to other partners. Although the investors were initially wary of the ownership share, they proposed their offers as they felt it had the potential to thrive in the long haul.
Kevin O’Leary offered $100K for 35% equity. After this, Mark Cuban and Robert Herjavec proposed $200K for 40% equity together. Kevin then asked Mark if he would join him. Ultimately, Mark Cuban and Kevin O’Leary finalized the deal at $200K for 40% equity.
Right after Shark Tank, ToyGaroo received huge orders but shut down within a year of its episode telecast. This was due to an inconsistent business model due to multiple visions held by the different partners and investors. With an incoherent strategy, the company went bankrupt, and the investors did not earn anything out of it.
2. Breathometer
If we look back on the many Shark Tank products that have appeared on the show since its inaugural, Breathometer is sure to find a prominent position. The pitch was a hit, with all the Sharks joining hands as they believed it was set to bring revolutions. However, the reality presented a completely different picture after Shark Tank.
Aspiring entrepreneur Charles Michael Yim tried his luck on the show withBreathometer. To put it simply, the product was a smartphone breathalyzer. Seeking $250K for 30% equity, he tried to convince the panelists into believing that the device was ideal for saving lives. It did so with its alcohol detection abilities.
Each of the panelists entered the negotiations with their respective offers. After some discussion, they decided to go in together and offer the final deal at $1 million for 30% equity. Taking this as an opportunity, Charles asked Mark Cuban if he was willing to accept the Lion’s share. Mark agreed and offered to invest $500K for 15%. The others offered the remaining $500 for 15%.
Breathometer was one of the few lucky Shark Tank products that experienced the ‘Shark Tank effect’ and made $1 million in sales within months after Shark Tank. Additionally, it was estimated that the company would make $10 million by 2016. But things took a major turn after this.
In 2017, it was found that the device gave forged readings, which received harsh actions from the Federal Trade Commission. Secondly, Mark claimed that the entrepreneur wasted all his money traveling. As of 2023, there was no update on the products’ availability.
3. evREwares
evREwares was one of the few Shark Tank products that received a 100% equity deal from a Shark. Brought to the show by a sister duo, the business received immense hype after the episode. But their journey soon turned sour, and they decided to close down evREwares right after.
The entrepreneurial duo of Ellie Brown and Becca Nelson made their way to the investors seeking $100K for 30% equity. Their company made fabric stickers, especially for kids. By the time of their appearance, evREwares was present in Container Store, Party City, and other such mom-and-pop outlets.
The duo revealed that they had poured $185K from the personal front and that the sales made were $600K. Both the material and product were patented, and the judges were happy with the margins. However, citing different reasons, all the judges except Mark Cuban opted out of the deal.
Mark offered $200K for 100% equity. Hearing this, both Ellie and Becca became tensed and emotional. After some discussions in the hallway, stating that they had done a lot for the company, the duo ultimately decided to take up the offer.
The founders accepted the deal on the show and witnessed a sales spike after their Shark Tank appearance. But after the episode aired, they refused to give away 100% of the business. Within a year of this decision, the venture shut down in 2015.
Conclusion
The journey of Shark Tank products is nothing less than a rollercoaster ride. Despite getting appreciation from the judges and securing landmark deals, there is no guarantee that they will sustain in the coming years. The best examples of this are ToyGaroo, Breathometer, and evREwares.
The fate of these products highlights the importance of strong management and coherent business strategy.
References
- Here’s Why Mark Cuban’s Historic ‘Shark Tank’ Deal To Buy A Company Outright Never Went Through, Business Insider, Richard Feloni
- Mark Cuban says this was his worst ‘Shark Tank’ investment ever: ‘Next thing you know, all of the money’s gone’, CNBC, Tom Huddleston Jr.