Shortly after the show was aired on Sunday, technology entrepreneur Peter Jones tweeted that his investment did not go through.
The Glasgow-based firm had hoped to use the money to help fund the expansion of its Bluetooth tracker, Xupo.
The coin-sized tracking sensor helps people find misplaced personal items.
The tracker was launched by Strathclyde University graduates Raj Sark and Vincenz Klemt in 2014 after they raised nearly £27,500 in a crowdfunding campaign with Kickstarter.
The idea was born when one of the founders lost his travel bag, including a new laptop computer and passport, at Heathrow Airport.
During the show, Peter Jones had offered the investment for 30% equity of the business.
Xupo had forecasted £1m in revenues in the next year.
However, just after the show Peter Jones tweeted: "My investment with My Lupo (sic) didn't go through as some issues arose during due diligence. I still wish Raj all the best in the future."
A PR firm had already issued a press release on behalf of Xupo welcoming the investment.
Mr Sark had said he was "thrilled by the investment and Peter Jones' confidence in the product".
Mr Klemt had said the investment would help them strengthen their position in the UK and expand into Germany and France, followed by Italy and Spain.

The 26-year-old Algeria international has only started two Premier League games this term with a further two starts in a total of 13 appearances.
He is available to make his debut in Tuesday's league game against Burnley.
"We needed another midfield player who can play either side and gives a bit of flexibility," Reds manager Steve Cotterill told BBC Radio Nottingham.
"At the beginning of the week Guy Moussi had a problem with his calf. Even if Guy was fit, at the moment, he's ended up going in the back four for us, which is not ideal. So, I needed another midfield player with some energy in there."
Guedioura initially joined Wolves on loan in January 2010 before signing permanently at the end of the season.
But he has struggled to earn a regular starting place at Molineux and also broke his leg last season.

It is believed to be the first alleged breach of the Terrorism Prevention and Investigation Measures (TPim).
The suspect appeared at the Old Bailey accused of failing to contact a monitoring company and report to a police station twice in January.
The Home Office has refused to comment on the case.
TPims replaced control orders in January 2012.
The suspect - who can only be referred to as BM - was one of nine British citizens subject to a TPim when the figures were last disclosed in March.
The BBC is not aware of anyone else who has appeared in court charged with a breach of a TPim.
The Home Office said: "We do not comment on individual cases.  The police investigate all breaches of TPims and will prosecute where that is viable."
Those subject to a TPim can be ordered to stay overnight at a specified address and report to a police station every day.
Other measures include a ban on contacting particular individuals, going to certain areas and places and travelling abroad.
Labour has argued that TPims have "weakened" public protection against terrorism.
In March, the independent reviewer of terror laws, David Anderson, said TPims could prove less effective than control orders because they can be imposed for a maximum period of two years only.
The court heard that BM is charged with two counts of breaching Section 23 of a TPim order.
The allegations are that on 16 January he failed to contact a monitoring company, and on 27 January failed to report to a police station.
BM, who has a grey beard and was dressed for the hearing in a white shirt, cannot be named nor have his address published for legal reasons.
The prosecutor Louise Gray asked for a provisional date of 2 July to be set for a plea and case management hearing.
The defendant was granted unconditional bail although he remains subject to the restrictions imposed by his TPim.
A trial date was not set.
A tech start-up firm which thought it had secured a £100,000 investment on the BBC's Dragons' Den TV show has had the funding pulled.
[NEXT_CONCEPT]
Nottingham Forest have signed Wolves midfielder Adlene Guedioura on loan until the end of the season.
[NEXT_CONCEPT]
A suspected terrorist has been charged with breaching conditions imposed as part of the government's new terror monitoring powers.