Being on Shark Tank: The Real Benefit to an Entrepreneur

03/01/2016

Once people learn that I work in the field of entrepreneurship, it doesn't take long before they ask the familiar question, "so do you like Shark Tank?"  I respond that what I like most is the fact that it has made entrepreneurship a family-friendly word.

Having peaked their interest, questioners often follow up with, “What is the biggest benefit entrepreneurs gain from appearing on Shark Tank?” Certainly, a potential investment from one of the renowned investors or ‘Sharks’ is appealing. But, as for the additional benefits, I thought it might be best to ask someone who has experienced it firsthand.

Stephan Aarstol, founder of Tower Paddle Boards, appeared on the show during season three and had a memorable showing, but not for the reasons he would have preferred.

“I’m known for having the worst pitch in the history of Shark Tank,” Aarstol said. “After I stumbled for a couple of minutes, one of the guys asked, ‘What does your company do?’ I thought, maybe I should start over.”

Despite the stumbles, Aarstol caught the eye of one particular Shark, Mark Cuban, who ended up investing $150,000 in Aarstol’s startup. It was quite a nice finish after a rocky start.

I asked Aarstol how he benefited from Shark Tank beyond that, and found he had spent a lot of time pondering the same question. While Mark Cuban did receive equity in Tower Paddle Boards at a discount, Aarstol believes the program’s benefits extend well beyond his own organization.


While it might sound counter-intuitive, Aarstol also says the constraints that an investor like Cuban imposes on a startup can ultimately be the company’s greatest advantage. Cuban’s investment led Tower Paddle Boards’ team to think more strategically and creatively, which has helped them outlast a host of competitors. 



Beyond providing Aarstol’s startup with increasing structure and focus, Cuban provided additional financing at a critical juncture. Aarstol says in situations of opportunity, it’s all about presenting the right business plan supported by the accurate details. 


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Contributors:
  • Amanda Schnieders