A trio of young entrepreneurs from Philadelphia thought their dreams had come true when they appeared on an episode of ABC’s “Shark Tank” TV show. For the uninitiated, “Shark Tank” has hopeful (usually young) business owners making presentations to a panel of millionaire and billionaire “sharks,” who offer constructive criticism of their ideas and practices and, if the entrepreneurs are lucky, offer to invest in the businesses for a percentage stake in the company.
The ladies behind ZOOM Interiors say that they are grateful for Corcoran’s guidance, even though the deal ultimately fell through. (Photo: ABC)
Madeline Fraser, Elizabeth Grover, and Beatrice Fischel-Bock certainly thought their dreams had come true in an episode filmed 11 months ago that aired Friday. While fellow sharks Mark Cuban and Lori Greiner passed on the chance to invest in ZOOM Interiors, a “tech meets design” business, Barbara Corcoran agreed to give the business $100,000 in exchange for a 33% share, a deal a bit tighter than the ladies had initially pitched, which was a 20% stake.
Unfortunately, the deal fell through. According to the trio of Fraser, Grover, and Fischel-Bock, the problem stemmed from a lack of mentorship from Corcoran, which they assumed was part of the bargain. Although the ladies have nothing but nice things to say about Corcoran, they admit that they found themselves frustrated after dealing solely with Corcoran’s “Shark Tank” business operations liaison, a man named Mike. Without Corcoran’s leadership to guide them, the group felt like a 33% stake was too high. The feeling was mutual, Fischel-Bock told BizPhilly that, “after the due diligence process, [Corcoran] didn’t see it as worthwhile.”
Things may have fallen through regarding “Shark Tank,” but the ZOOM team says that things are still looking up. Not only is the company worth more now, says Fischel-Bock, but the ladies have a new game plan as well. They are still looking for investors, but say that the advice they received from the “Shark Tank” panel was invaluable. Specifically, advice from Cuban to quit their jobs and “sleep on the floor” if necessary to devote their full energy to the business – no word on whether they are actually homeless, but the ladies work full-time for their company now.
And lest you think that this story is uncommon, know that it is not.
Bloomberg quotes TJ Hale, of the Shark Tank Podcast, as estimating that “two-thirds of the deals struck on Shark Tank never actually come to fruition.”
