What Happens After Shark Tank: Due Diligence, Deals That Fall Through and the Shark Tank Effect

Viewers see the handshake, the hug and the celebratory walk down the hallway. What they don't see is the months that follow. For founders, the period after taping is often more consequential than the pitch itself: deals are verified, renegotiated or abandoned, and businesses prepare for an airing that may or may not bring a flood of customers. Here's what generally happens next, based on what is widely reported about the process, with the caveat that every deal and every business is different.

This guide is for general education and isn't legal or financial advice.

Step 1: The handshake is an agreement in principle

A deal made on camera is best understood as an agreement to pursue an investment on certain terms. It is not a wire transfer. After taping, the Shark's team and the founder work to turn that agreement into binding documents, and that process depends on what the investor finds when they look closely at the business.

Step 2: Due diligence

Due diligence is the investor's verification of everything the founder claimed, plus anything the pitch didn't cover. Typical areas include:

• Financials: sales records, profit and loss statements, tax returns, bank statements, inventory and accounts payable.
• Legal structure: how the company is organized, who owns what, existing investors and any agreements that grant rights to others.
• Intellectual property: patents, patent applications, trademarks and whether anyone else could claim rights to the product.
• Contracts: supplier, manufacturer, retailer and licensing agreements, including exclusivity and termination terms.
• Debt and liabilities: loans, liens, pending disputes and personal guarantees.
• Product and regulatory issues: safety certifications, labeling and any category-specific rules.

How to prepare before you ever pitch

1. Keep clean, reconciled books from day one.
2. Put every ownership agreement in writing, including with co-founders and early helpers.
3. File and document intellectual property properly.
4. Store contracts and key documents in a single, organized folder (often called a data room).
5. Make sure every number you plan to say on camera is backed by a record.

Step 3: Deals that change or fall through

It is widely reported that a meaningful share of on-air deals are renegotiated or never close. That can sound alarming, but it's a normal feature of investing: due diligence exists precisely because a short conversation can't capture everything. Common reasons include:

• Numbers that don't match the pitch. Sales, margins or inventory that differ from what was said on camera.
• Undisclosed obligations. Debt, prior investors, royalty agreements or licensing deals that weren't mentioned.
• Intellectual property problems. Weak or disputed patents, or trademark conflicts.
• Changed circumstances. The business grew quickly and the founder no longer wants to give up as much equity, or business conditions worsened.
• Founder second thoughts. After reflection, some founders decide the partnership isn't right.
• Investor second thoughts. The Shark decides the opportunity is less attractive or the fit is weaker than it seemed.

Our product database records whether a deal was made on air and which Sharks agreed to it. Because what happened after taping isn't always public, treat any on-air deal as exactly that: a deal on air.

Step 4: The airing and the "Shark Tank effect"

The "Shark Tank effect" is the popular name for the surge in website visits, orders and attention that many businesses report when their episode airs. Several factors shape it:

• Air date and time slot. Episodes can air months after taping, so founders often wait without knowing exactly when.
• Edit and screen time. A long, positive segment generally helps more than a brief one.
• Product appeal. Impulse-friendly consumer products at accessible prices tend to convert viewers into buyers more easily.
• Reruns and streaming. Many founders report additional spikes when episodes re-air or are discovered later online.

The effect is real for many businesses, but it varies widely and isn't guaranteed. It can also expose weaknesses: websites that crash, inventory that sells out in hours, and customer service teams that are overwhelmed.

Preparing for airing night

Communicating during the waiting period

Founders who have taped an episode are typically asked to keep the outcome confidential until it airs. That waiting period can be a useful runway. Use it to fix operational weak spots, build inventory responsibly, tighten your website and gather customer reviews. Once the air date is known, line up email announcements and social posts so you can capture attention the moment the episode runs.

Step 5: Life with (or without) a Shark

For founders whose deals close, the relationship varies by investor. Some Sharks have teams that provide hands-on help with retail, licensing, manufacturing or marketing. Others act more like traditional investors who weigh in on big decisions. Founders who clarify expectations up front, such as who to contact, how often to report and what help is available, tend to get more from the partnership.

For founders who leave without a deal, or whose deal falls through, the airing can still bring customers, retail interest and other investors. Read what no-deal success stories teach founders.

Long-term outcomes: a look at our data

Our database tracks a current status for each business where we have one. A small number are listed as acquired or closed, which illustrates how varied post-show paths can be.

Listed as acquired

• Plated (Season 5), a meal kit delivery service, closed a deal with Mark Cuban on air and is now listed as acquired.
• GrooveBook (Season 5), a phone-to-photo-book subscription, closed with Mark Cuban and Kevin O'Leary and is listed as acquired.
• Stasher (Season 9), reusable silicone food storage bags, closed with Mark Cuban and is listed as acquired.
• Basepaws (Season 10), at-home cat DNA tests, closed with Robert Herjavec and Kevin O'Leary and is listed as acquired.
• DoorBot (Season 5) and Rocketbook (Season 8) did not get deals on air, and both are listed as acquired.

Listed as closed

• Toygaroo (Season 2), a toy rental subscription, closed a deal with Mark Cuban and Kevin O'Leary on air.
• Geek Chic (Season 4), handcrafted gaming furniture, closed with Robert Herjavec.
• Doorman (Season 6), an evening package delivery service, closed with Robert Herjavec.
• Nomiku (Season 8), a home sous-vide circulator, closed with guest Shark Chris Sacca.

The lesson isn't that deals predict success or failure. It's that an on-air deal is one event in a long company history. Funding, execution, competition, market timing and many other factors shape what happens next. For more numbers like these, see Shark Tank by the numbers.

A post-taping checklist for founders

1. Organize financial, legal and IP documents immediately.
2. Respond quickly and transparently to the investor's diligence requests.
3. Have an attorney review the definitive agreement before signing.
4. Plan inventory and cash flow for a possible surge, without over-ordering on hope.
5. Prepare your website, fulfillment and customer service for airing.
6. Build an email list so you can turn a one-night spike into long-term customers.
7. Decide how you'll describe the outcome publicly once the episode airs.

Thinking about applying? Start with how to get on Shark Tank and make sure your numbers can withstand scrutiny with Know Your Numbers.