Essential Rules for Every Participant on Shark Tank

When you’re fortunate enough to secure a deal during your “Shark Tank” appearance, remember that you can back out before the deal officially closes. For instance, if during your evaluation, you decide not to sell the entirety of your chip-clip business to Mark Cuban, you have the right to opt out. What you can’t do, however, is use the deal from “Shark Tank” to court another investor.

Imagine approaching one of Cuban’s billionaire friends with what you believe is enticing insider information. You mention that a highly esteemed investor thinks your company is so promising that he’s willing to invest substantially. Since the “Shark Tank” deal isn’t finalized, you might think of considering a better offer from his friend. But be prepared to face legal consequences if you proceed this way. Yet, if you still retain equity, you can continue seeking investment at the valuation determined by the “Shark” you pitched to.

Equally, you might be inclined to renegotiate your deal with Cuban after experiencing the “Shark Tank” effect and seeing a spike in sales. While it’s possible to try modifying the deal’s terms, leveraging the chance they provided you to extract more money often spells trouble for sustaining a productive partnership.