
Shark Tank Statistics - acremades
http://www.sharktank.tvquotes.net/
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sharkweek
I've always felt the real benefit of being on Shark Tank is the amazing
publicity that the show offers, no matter whether or not a deal is obtained. I
recently interviewed Proof Eyewear (<http://www.iwantproof.com>) on what the
experience provided (I'll post it here once it's published next week). During
the airing of the show and the following weekend, they could barely keep their
site standing (over two million uniques in 24hrs), and the past few weeks
since airing have seen huge increases in business.

Random note -- the application is sent to a @yahoo email address... I find
that kind of funny all things considered -- SharkTankCasting@yahoo.com
(<http://abc.go.com/shows/shark-tank/casting>)

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stormbrew
Yep. I've always figured the best thing to do (for Dragon's Den, I've seen a
lot less Shark Tank but it seems identical) is to be ready to capitalize on
the advertising and then aim for no-deal.

Especially since what I've heard about the process of getting the deal
actually done (as opposed to TV done, a lot of them fall through post-air) is
that it'll sap a lot of time and effort anyway.

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jhchen
It's worth noting that advertising is not free: 5% equity or 2% royalty goes
to Shark Tank just for appearing. See the last page of
[http://a.abc.com/media/primetime/sharktank/SharkTank3OpenCal...](http://a.abc.com/media/primetime/sharktank/SharkTank3OpenCallApplication.pdf)

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ry0ohki
Yep, you have to think of that equity stake as the cost for a 5 minute Friday
night commercial. I'm assuming such a commercial would cost maybe $30-50k or
more, so it seems like a semi-fair deal (although since you are also the one
creating the entertainment which lands the sponsor deals maybe not!)

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learc83
It's better than a commercial. People actually want to watch, instead of
changing channels or going to the bathroom.

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lquist
A 10x profit multiple on companies at the average growth stage that Shark Tank
companies are at is insanely low. I've always felt that the entrepreneurs who
take a deal are completely screwed. The smart ones take the huge publicity
jump from appearing on the show, turn down any deal offered, and seek money
from the inevitable inbound investor generated post-show airing.

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t0
Smart, but I hate those people. At least make an effort to pretend like you
want some sort of deal for entertainment sake. Don't just walk in, completely
ignore the sharks and advertise your product.

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jamesbritt
True. At least present an offering that, if actually accepted, would be good
for you.

Who knows; you might ask for the moon and get it.

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uptown
I've heard Cuban interviewed a couple times. A tiny fraction of what gets a
deal on the show actually close the deal. Once they do the due-diligence with
facts and actual numbers, things tend to fall apart. More on that:
[http://www.nypost.com/p/entertainment/tv/deal_interrupted_cP...](http://www.nypost.com/p/entertainment/tv/deal_interrupted_cPMIlS95ZcxoPT9UUxVLPP)

~~~
gusgordon
Here he says only 25% have something wrong:
[http://www.reddit.com/r/IAmA/comments/15doqt/mark_cuban_this...](http://www.reddit.com/r/IAmA/comments/15doqt/mark_cuban_this_is_my_ama/c7lkbfx)

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thehodge
Share Tank is also interesting because to even go on it, I believe you have to
give 3% to the network no matter what the outcome of the show is, investment
or no investment..

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sharkweek
Interesting -- found the source for that:

[http://a.abc.com/media/primetime/sharktank/SharkTank3OpenCal...](http://a.abc.com/media/primetime/sharktank/SharkTank3OpenCallApplication.pdf)

"I further understand and acknowledge that I will be required to enter into
further agreements with Finnmax LLC (“Producer”) relating to the business that
I may present to the sharks for possible investment (my “Business”). Among
other things, those agreements are currently anticipated to provide that as a
condition of my participation on the Series, Producer, Sony Pictures
Television Inc. and American Broadcasting Companies, Inc. (collectively the
“Shark Tank Entities”) or their designee(s) will receive an irrevocable option
(the “Option”), to do either of the following or neither, at their election
and in their sole discretion:

1\. Receive a 2% royalty of the operating profits of my Business or

2\. Receive warrants that give the Shark Tank Entities or their designees a 5%
equity interest in my Business. "

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rburhum
Wow. The producers are more sharks than the sharks themselves. This reminds me
of those places where people _pay_ to pitch. What a rip-off.

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niggler
"What a rip-off."

The opportunity to showcase your product and have it seen by millions of
potential customers and investors on national television may actually be worth
far more than their take.

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ig1
I wrote an article on Dragon's Den valuation and why they're different from
typical startup valuations a few years back:

[http://blog.awesomezombie.com/2010/10/low-valuations-on-
drag...](http://blog.awesomezombie.com/2010/10/low-valuations-on-dragons-
den.html)

Fundamentally the type of businesses that go on these TV shows tend to be much
slower growth than your typical tech startup, hence why they receive much
smaller valuations than what we in the tech industry are used to seeing.

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tapp
This is cool as far as it goes. However what I'd _really_ like to see (though
it would obviously be a lot more work) is an analysis that tracks the deals
through to consummation. I've read that a very high percentage fall through
before funding (HyConn was one of the high profile examples.)

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alanfalcon
Agreed. I really enjoyed the HyConn episode up until I read up on the
aftermath. It's for the best that handshake deals based on up to sixty minutes
negotiation is not binding, but it would be nice to be able to easily track
down the real story on companies after the episodes air.

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adventured
I've been looking for data on the offer variance on deals that have one
entrepreneur versus multiple partners. Can't seem to locate that info.

From watching it, it seems like entrepreneurs get more offers when they have
partners, particularly there on set with them. Would match up with what is
seen in other investing circles.

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mikecane
The statistics are unlikely to be complete. This is television. We don't know
if _all_ deals have been on the air. For a variety of reasons, some deals
could have never aired -- such as the subjects not being telegenic enough or
the segment not being "compelling TV." I don't know if there's a disclaimer at
the end to this effect but this happens with game shows too so it's likely to
be in effect with Shark Tank as well.

EDIT to add: Yes, I know he's likely measuring just what he -- and all of us
-- sees, but still.

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rpledge
Does this analysis include how many deals actually close? There is a due
diligence phase after the show is taped and I'm under the impression very few
deals actually complete....

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benhebert
I worked at GiftCardRescue.com when we were on season one of the Shark Tank.
Kwame took the deal on tv and then declined when it got down to the paperwork.
Smart guy...

