Many businesses that appear on "Shark Tank" have innovative ideas, but not all manage to convince investors of their potential. Mark Cuban, known for his keen business acumen, has called out several companies during their pitches as scams. Let’s see some of the most notable ones.
Minus Cal
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Minus Cal is a weight-loss snack bar pitched by Crom Carmichael and Barrett Jacques in the premiere episode of season 11. Despite their claims that their product could block fat absorption, Mark Cuban and other sharks were skeptical, doubting its legitimacy.
From the moment Carmichael and Jacques entered the stage, Mark Cuban had serious reservations about the product and the claims made by the creators of Minus Cal. As the founders finished pitching their weight-loss snack bar and the sharks started tasting them, Robert Herjavec told them, "Doesn’t taste that great!"
However, that didn’t deter them from further explaining the science and research behind the bars. Mark interrupted them with, "That doesn’t necessarily make it safe for everybody, but at the same time, look, guys, you know I’m a skeptic of all this stuff. You can’t claim that it’s going to reduce 100 calories out of what you eat by taking two pills."
When the founders replied they didn’t make that claim, Cuban simply pointed at their T-shirts that said "Minus Cal," noting that customers would easily draw their own conclusions even if they didn’t expressly say that their product reduces calories (which they did).
After much back-and-forth between the founders and the sharks, Kevin O’Leary finally stopped it, saying, "I think we’re done here." This prompted Mark to make one final warning to the audience: "To everybody who’s watching, don’t buy it. I’m out!"
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According to Looper, after the "Shark Tank" appearance, Minus Cal faced a difficult path. Negative reviews plagued the product, resulting in poor sales and a low average rating on platforms like Amazon.
Despite being in the spotlight, the company struggled to gain traction. By the end of 2019, Minus Cal’s social media presence dwindled, and by 2020, its online store was shutdown. Ultimately, the business went bankrupt, and the founders moved on to other pursuits.
Pavlok
After earning a Bachelor of Science in Technology and Society from Stanford, Maneesh Sethi grew discontent with his career as a web designer. To combat his ADHD and focus issues, Sethi developed Pavlok, a wristband device that delivers electric shocks to help people break bad habits such as overeating, smoking, and nail-biting. His goal was to condition users to associate the shock with their bad habits, ultimately helping them overcome these behaviors. This is based on the Pavlovian response, of course.
Pavlok’s wristband device first caught people’s attention through an Indiegogo campaign, eventually leading to an appearance on "Shark Tank."
On the show, Sethi asked for $500,000 in exchange for a 3.14% stake in his company, putting Pavlok’s value at $15.9 million. The device got mixed reactions from the sharks after the initial shocks (pun intended) they got from the bracelet.
Robert Herjavec made light of the situation, joking about Sethi’s proposed equity percentage. However, Cuban led the skepticism by telling Robert, "It’s all nonsense, Robert, it’s all nonsense across the board," and going as far as calling Sethi a con artist.
Despite Maneesh’s defense, citing a substantial user base and $800,000 in preorders, tension didn’t die down. Lori Greiner and Cuban doubted the product's scientific credibility, while Robert Herjavec found the $200 price tag exorbitant. Conversely, Barbara Corcoran found the founder’s presentation exhausting and complicated.
Ultimately, despite Kevin O’Leary showing marginal interest and offering a $500,000 loan, Sethi didn’t leave the "Shark Tank" with a deal, even saying, "I would take an offer from anybody besides Mr. Wonderful." Naturally, O’Leary didn’t hold back, and this led to one of the most epic lines in "Shark Tank" history.
As Sethi himself shared in a video, despite a rocky appearance on "Shark Tank," Pavlok thrived, gaining 10,000 new customers and improving its product’s usability. The company introduced features like hand detection technology for overeaters and nail biters, as well as a Chrome extension to limit online distractions.
They also secured funding from investors and launched many successful Indiegogo campaigns for their Shock Clocks, raising hundreds of thousands of dollars. Pavlok remains in business, offering its products on its website and Amazon, including newer versions like Shock Clock 2, 3, and Max.
The explosive "Shark Tank" episode only helped spotlight the company’s products despite getting extremely harsh words from the sharks.
Tycoon Real Estate
In Season 6, Episode 16 of "Shark Tank," Aaron McDaniel pitched Tycoon Real Estate, a web-based real estate crowdfunding platform, seeking $50,000 for a 5% stake in the company. The pitch did not go well, with the Sharks expressing concerns about the business model’s viability and potential risks.
After Kevin pointed out that there are already REITs that people who want to invest in real estate can buy, McDaniel simply said that REITs "aren’t sexy." But Cuban obviously disagreed, saying, "That’s so horrible. That is wrong in so many ways, Aaron!"
Just as with Pavlok, Mr. Wonderful was the only shark who had an offer. The offer was $50,000 for 50% ownership, which McDaniel straightaway declined.
So, what happened to the product and the company after the show? Simply put, they benefited from the "Shark Tank" effect as Tycoon Real Estate experienced a significant boost in exposure, attracting thousands of new users. As McDaniel explained in an interview with KF Brand Studio, despite this initial surge, the platform struggled with website reliability and investor skepticism. In November 2015, Tycoon Real Estate was acquired by a Group of Five major crowdfunding platforms, including American Homeowner Preservation and Patch of Land.
This acquisition marked Tycoon Real Estate as the first real estate crowdfunding platform to be acquired. Since then, Aaron McDaniel has moved on to other ventures and now teaches entrepreneurship at UC Berkeley.
Failing on this very popular TV show doesn’t have to be an end-all event, as many companies have shown during the course of the show. Even if Mark Cuban calls you a con artist, you can still develop a thriving business.
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