Business

No Thanks! Companies Reject ‘Shark Tank’ Deals, Still Thrive

Published

11 years ago

February 27, 2015

In this Sunday, Feb. 22, 2015 photo, Daniel Rensing, left and his wife Stephanie, owners of The Smart Baker, pose with their first product, an apron with upside down measurement conversions, at their warehouse in Rockledge, Fla. Annual revenue for their company is close to $1 million, up from $130,000 before their March 2012 appearance on the reality TV show “Shark Tank”. (AP Photo/David Goldman)

JOYCE M. ROSENBERG, AP Business Writer

NEW YORK (AP) — With the cameras rolling, Daniel and Stephanie Rensing accepted an offer from a “Shark Tank” investor. But after they had time to think about it, they changed their minds.

Annual revenue for their company, The Smart Baker, is close to $1 million, up from $130,000 before their March 2012 appearance on the ABC reality TV show.

“Not doing the deal and having that exposure was probably the best scenario for us,” says Daniel Rensing, CEO of the Rockledge, Florida, company which sells aprons, parchment paper and other baking equipment.

Dreams of investor money have induced more than 150,000 businesses to apply to be contestants on “Shark Tank,” where entrepreneurs pitch to cast members including Barbara Corcoran, founder of a prominent New York real estate brokerage; Daymond John, founder of the clothing company FUBU; and Robert Herjavec, founder of the technology conglomerate Herjavec Group.

Entrepreneurs may be all smiles when they get an offer on the show, but the deals aren’t set in stone. Negotiations start soon after episodes are taped. Contestants can walk away if they don’t like the terms.

“When we shake hands on a potential deal on Shark Tank, the romance runs high and everyone’s excited about what could be,” Corcoran says. “In the end, the entrepreneur is in charge.”

During the first five seasons, 374 contestants appeared on TV and investors made 190 offers, according to ABC. Forty-eight contestants turned down offers during taping, executive producer Clay Newbill says. They haven’t tracked how many deals fell apart during negotiations.

The producers ask entrepreneurs and investors to make their best efforts to close deals, Newbill says.

“But we understand, just as in the real world, the reality is that not all deals will close,” he says.

SECOND THOUGHTS

Corcoran offered $75,000 for 40 percent of The Smart Baker, and a 5 percent sales royalty, during the 2011 taping. During negotiations the Rensings, disagreed with Corcoran about the target market.

“We were sticking to our guns on the market we served,” Rensing says.

Corcoran says she was disappointed, but she knows a rejection is an occupational hazard on “Shark Tank.”

“Nobody likes to be turned down, especially me,” she says.

The Smart Baker has thrived without her money. In the following year, revenue grew to $600,000. The episode also helped the company get noticed by Food Network and other media. Reruns provide a sales bump.

But a “Shark Tank” deal isn’t just about money; it also brings expertise and mentoring from a pro. The Rensings don’t dwell on what they might have missed by not sticking with Corcoran.

“There is always the ‘what ifs,’ but we don’t let that get to us,” Daniel Rensing says.

THE RIGHT MOVE?

Some contestants may turn down offers because they feel there are more important things than getting investors, says Matthew Rutherford, an entrepreneurship professor at Oklahoma State University who has studied “Shark Tank” pitches.

“What they crave over everything including money and wealth is autonomy,” Rutherford says.

Entrepreneurs who appear on the show are likely hoping for both a cash infusion and control of their companies, says Harvard Business School professor Noam Wasserman. But the money doesn’t guarantee success, and having an investor may be an unpleasant experience.

“You could end up with the worst of both worlds,” he says.

NOT AFRAID TO SAY NO

When Mona Weiss and Scott Shields pitched their company, Eco Nuts, on an episode that aired in October 2012, Herjavec offered $175,000 for 50 percent. Weiss and Shields, who wanted to sell a 15 percent stake for that amount, said no on the spot.

“It was a terrible deal, really awful. No one would give up half their company for less than they make in a year,” Weiss says. The Lawndale, California, company, which makes laundry detergent from berries, was on track for $250,000 in revenue in 2012.

A spokeswoman for Herjavec, Erin McLean, says he does not comment on deals or offers that are closed.

Some people told Weiss and Shields they were foolish.

“They said, ‘it was a lot of money, you should have taken that,'” Weiss says.

But being on “Shark Tank” put Eco Nuts on a faster track to its current success. Revenue, now over $1 million, grew so much the company moved to manufacturing space five times bigger than its original factory.

____

Follow Joyce Rosenberg at www.twitter.com/JoyceMRosenberg

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Oakland Post: Week of December 31, 2025 – January 6, 2026

The printed Weekly Edition of the Oakland Post: Week of – December 31, 2025 – January 6, 2026

Published

5 days ago

January 2, 2026

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Big God Ministry Gives Away Toys in Marin City

Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grow up.

Published

1 week ago

December 29, 2025

Oakland Post

From top left: Pastor David Hall asking the children what they want to be when they grow up. Worship team Jake Monaghan, Ruby Friedman, and Keri Carpenter. Children lining up to receive their presents. Photos by Godfrey Lee.

By Godfrey Lee

Big God Ministries, pastored by David Hall, gave toys to the children in Marin City on Monday, Dec. 15, on the lawn near the corner of Drake Avenue and Donahue Street.

Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grew up.

Around 75 parents and children were there to receive the presents, which consisted mainly of Gideon Bibles, Cat in the Hat pillows, Barbie dolls, Tonka trucks, and Lego building sets.

A half dozen volunteers from the Big God Ministry, including Donnie Roary, helped to set up the tables for the toy giveaway. The worship music was sung by Ruby Friedman, Keri Carpenter, and Jake Monaghan, who also played the accordion.

Big God Ministries meets on Sundays at 10 a.m. at the Mill Valley Community Center, 180 Camino Alto, Mill Valley, CA Their phone number is (415) 797-2567.

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First 5 Alameda County Distributes Over $8 Million in First Wave of Critical Relief Funds for Historically Underpaid Caregivers

“Family, Friend, and Neighbor caregivers are lifelines for so many children and families in Alameda County,” said Kristin Spanos, CEO, First 5 Alameda County. “Yet, they often go unrecognized and undercompensated for their labor and ability to give individualized, culturally connected care. At First 5, we support the conditions that allow families to thrive, and getting this money into the hands of these caregivers and families at a time of heightened financial stress for parents is part of that commitment.”

Published

1 week ago

December 29, 2025

Oakland Post

Costco. Courtesy image.

Family, Friend, and Neighbor Caregivers Can Now Opt Into $4,000 Grants to Help Bolster Economic Stability and Strengthen Early Learning Experiences

By Post Staff

Today, First 5 Alameda County announced the distribution of $4,000 relief grants to more than 2,000 Family, Friend, and Neighbor (FFN) caregivers, totaling over $8 million in the first round of funding. Over the full course of the funding initiative, First 5 Alameda County anticipates supporting over 3,000 FFN caregivers, who collectively care for an estimated 5,200 children across Alameda County. These grants are only a portion of the estimated $190 million being invested into expanding our early childcare system through direct caregiver relief to upcoming facilities, shelter, and long-term sustainability investments for providers fromMeasure C in its first year. This investment builds on the early rollout of Measure C and reflects a comprehensive, system-wide strategy to strengthen Alameda County’s early childhood ecosystem so families can rely on sustainable, accessible care,

These important caregivers provide child care in Alameda County to their relatives, friends, and neighbors. While public benefits continue to decrease for families, and inflation and the cost of living continue to rise, these grants provide direct economic support for FFN caregivers, whose wages have historically been very low or nonexistent, and very few of whom receive benefits. As families continue to face growing financial pressures, especially during the winter and holiday season, these grants will help these caregivers with living expenses such as rent, utilities, supplies, and food.

The funding for these relief grants comes from Measure C, a local voter-approved sales tax in Alameda County that invests in young children, their families, communities, providers, and caregivers. Within the first year of First 5’s 5-Year Plan for Measure C, in addition to the relief grants to informal FFN caregivers, other significant investments will benefit licensed child care providers. These investments include over $40 million in Early Care and Education (ECE) Emergency Grants, which have already flowed to nearly 800 center-based and family child care providers. As part of First 5’s 5-Year Plan, preparations are also underway to distribute facilities grants early next year for child care providers who need to make urgent repairs or improvements, and to launch the Emergency Revolving Fund in Spring 2026 to support licensed child care providers in Alameda County who are at risk of closure.

The FFN Relief Grants recognize and support the essential work that an estimated 3,000 FFN caregivers provide to 5,200 children in Alameda County. There is still an opportunity to receive funds for FFN caregivers who have not yet received them.

In partnership with First 5 Alameda County, Child Care Payment Agencies play a critical role in identifying eligible caregivers and leading coordinated outreach efforts to ensure FFN caregivers are informed of and able to access these relief funds.FFN caregivers are eligible for the grant if they receive a child care payment from an Alameda County Child Care Payment Agency, 4Cs of Alameda County, BANANAS, Hively, and Davis Street, and are currently caring for a child 12 years old or younger in Alameda County. Additionally, FFN caregivers who provided care for a child 12 years or younger at any time since April 1, 2025, but are no longer doing so, are also eligible for the funds. Eligible caregivers are being contacted by their Child Care Payment Agency on a rolling basis, beginning with those who provided care between April and July 2025.

“This money is coming to me at a critical time of heightened economic strain,” said Jill Morton, a caregiver in Oakland, California. “Since I am a non-licensed childcare provider, I didn’t think I was eligible for this financial support. I was relieved that this money can help pay my rent, purchase learning materials for the children as well as enhance childcare, buy groceries and take care of grandchildren.”

Eligible FFN caregivers who provided care at any time between April 1, 2025 and July 31, 2025, who haven’t yet opted into the process, are encouraged to check their mail and email for an eligibility letter. Those who have cared for a child after this period should expect to receive communications from their child care payment agency in the coming months. FFN caregivers with questions may also contact the agency they work with to receive child care payments, or the First 5 Alameda help desk, Monday through Friday, from 9 a.m. to 5:00 p.m. PST, at 510-227-6964. The help desk will be closed 12/25/25 – 1/1/26. Additional grant payments will be made on a rolling basis as opt-ins are received by the four child care payment agencies in Alameda County.

Beginning in the second year of Measure C implementation, FFN caregivers who care for a child from birth to age five and receive an Alameda County subsidized voucher will get an additional $500 per month. This amounts to an annual increase of about $6,000 per child receiving a subsidy. Together with more Measure C funding expected to flow back into the community as part of First 5’s 5-Year Plan, investments will continue to become available in the coming year for addressing the needs of childcare providers in Alameda County.

About First 5 Alameda County

First 5 Alameda County builds the local childhood systems and supports needed to ensure our county’s youngest children are safe, healthy, and ready to succeed in school and life.

Our Mission

In partnership with the community, we support a county-wide continuous prevention and early intervention system that promotes optimal health and development, narrows disparities, and improves the lives of children from birth to age five and their families.

Our Vision

Every child in Alameda County will have optimal health, development, and well-being to reach their greatest potential.

Learn more at www.first5alameda.org.