The bright lights, the fast pitches, the hopeful smiles that’s the iconic image of Shark Tank. But beyond the cameras and deals lies a harder reality. In 2025, many startups that once rode the wave of the show’s exposure are now struggling. Some say the outlook is bleak. “The prognosis is not good,” one investor concedes.
What’s changed? And what does it tell you about the nature of entrepreneurship when the camera stops rolling?
The old “Shark Tank” formula and why it worked
In years past, appearing on Shark Tank offered a triple boost for entrepreneurs:
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A large-audience platform that could trigger massive viral sales.
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Investment offers from prominent “sharks” who lent credibility.
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A path to scale often linked to low-cost manufacturing (especially overseas) and rapid retail roll-out.
That formula worked until the assumptions behind it started to crack.
Why many of those assumptions are breaking down in 2025
Several structural shifts are now exposing the vulnerabilities of startup models built on the old script:
1. Rising tariffs and manufacturing cost pressure
Many Shark Tank companies depended on overseas manufacturing to keep costs low. But steep tariffs and unpredictable trade policy are eating into margins. For example, one company manufacturing in China found their cost advantage evaporating.
2. Viral momentum is harder to sustain
Getting a viral moment TikTok, Instagram, TikTok used to translate into growth. Today the playing field is more crowded, consumer attention is fragmented, and one-time hits are less durable.
3. Investors are re-thinking risk and valuations
Entrepreneurship is harder to sell when costs are rising and supply chains are shaky. As one expert at Northwestern noted: “If you are an entrepreneur, and you plan to be able to source some of your products from a low-cost place, and that is suddenly no longer something you can do … that uncertainty doesn’t make a successful case to funders.”
4. Scaling fast often means scaling risk
Many contestants on Shark Tank accepted deals and then tried to rapidly scale production, distribution, and marketing. When supply chain hiccups or cost escalations hit, the cracks appeared. Business-insider interviews show multiple founders delayed orders, shrank projection goals, or slashed marketing budgets as a result.
What founders are saying
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One founder pitched a viral dog-bed product, produced in China at low cost. Their plan to grow into retail was ambitious until tariffs and costs forced a restructuring.
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Even legacy winners aren’t immune: A founding company of a hit product said tariff hikes on Vietnam shipments triggered a crisis last spring.
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The common theme: cost escalation, supply-chain uncertainty, scaling stress, and pressure from investors or “sharks” now favoring better deal terms.
What this means for the ecosystem
The challenges facing Shark Tank founders are part of a broader shift:
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Deal terms may tighten. Founders may receive less favorable offers as investors anticipate higher risk.
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Product-heavy businesses get squeezed. Physical goods are exposed more badly to tariffs, manufacturing changes, freight cost hikes.
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Narrative matters more than ever. Having a strong story and brand used to be enough; now operational robustness is equally important.
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The show may shift its focus. With product deals under pressure, the types of companies that succeed may move toward services, digital goods, or business models less exposed to manufacturing disruption.
So what can founders do to adapt?
Here are some practical pointers for any entrepreneur born from the Shark Tank era or aspiring to that level of exposure:
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Revisit your supply chain. Can you diversify manufacturing, bring parts production closer to home, or use modular designs?
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Test scalability before you gamble on viral hype. Being prepared operationally is as important as being seen.
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Know your cost structure and margin erosion risks. Don’t assume overseas manufacturing always gives a huge cost edge.
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Build investor pitches around resilience, not only growth upside. Investors are cautious these days show you can withstand shocks.
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Keep a focus on product–market fit, not just retail deals. Scaling quickly is tempting, but a steady business is more defendable.
The television moment of Shark Tank may promise overnight success, but in 2025 the reality is tougher. The converging pressures of cost inflation, tariffs, fractured supply chains, and investor caution mean that while visibility still helps, business resilience matters more than ever.
For founders who thought the deal alone would change everything the lesson now is that the real challenge starts after the lights fade.
