Investor: Mark Cuban
Shark Tank Appearance: March 16, 2012
Deal: $150,000 for 30% stake
Results: Revenue soared from $100,000 to over $25 million
Stephan Aarstol's Shark Tank pitch for Tower Paddle Boards in season three was a disaster. His slideshow glitched, skipping from the first slide to the last. Stunned, he froze for a full minute. Barbara Corcoran dubbed it the worst presentation in the show's history. But Mark Cuban spotted potential. "I'm an entrepreneur. I take small things and make big things out of them," he said, offering $150,000 for 30% of the online paddleboard company. He later called it one of his best investments.
Related: Why failure is good for success
To catch up on the journey since, Aarstol shared insights with SUCCESS magazine from his San Diego office.
Q: You've admitted your pitch was the worst on Shark Tank that still landed a deal. What went wrong?
A: Shark Tank called me out of the blue during season two. I hadn't even heard of it. Six weeks later, we taped. With my poor memory, I focused on the sharks' names. I prepared thoroughly, but the technical glitch made me blank out. It was worse in person.
Q: What did you do with Mark Cuban's $150,000?
A: I paid off a $100,000+ loan. When I reported $60,000 in sales four days post-airing, he requested a $50,000 dividend check. Smart move—investors first. Selling 30% for $150,000 felt like giving it away, but that payment built trust. A year later, amid rapid growth, he provided a $300,000 personal loan. Banks wouldn't lend until 2014.
Q: Describe your relationship with Cuban.
A: We communicate via email; he often replies at night. It's efficient asynchronous style for busy entrepreneurs. His responses are concise: "Don't do that" or "Don't be silly." When I eyed Groupon rentals, he said, "Forget it. They're not your customer." He was right—I pivoted fast. I run with ideas and update him, seeking advice when needed. I make final calls, but his instincts are sharp. Once, post-vacation, he sent scuba mask photos. I thought they were clunky, but we prototyped. Masks are simple to make—we sold $30,000 the first month and project $1 million this year.
Q: You once cut hours to 8 a.m.–1 p.m. and wrote The Five-Hour Workday. How did it go?
A: It backfired. Aimed at retention and work-life balance, but three of seven employees left. Productivity rose and revenue grew, yet connection waned. At 25 hours/week, life outside work dominates. Startups thrive on immersion. Now, eight-hour days most of the year; five-hour shifts in peak summer (June–September) for efficiency under pressure.
Q: How has life changed since Shark Tank?
A: Not drastically. We're a direct-to-consumer beach lifestyle brand, adding sunglasses, chairs, bikes, and skateboards—all under Tower. Growth reinvests into inventory; I had a roommate until last year.
Related: 5 tips for running a successful business
This article originally appeared in the May 2017 issue of SUCCESS magazine.
