
Why Does Shark Tank Lie About Valuation? (2016) - quickthrower2
https://medium.com/@QJeffR/why-does-shark-tank-lie-about-valuation-a5cc3e72fe9c
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quickthrower2
Not being from an investment background, but a maths background. I did feel a
bit stupid watching Shark Tank thinking I was missing something about how they
valued the companies.

Then after a bit of Googling, I found that indeed they value them incorrectly.
Most likely so as not to confuse viewers.

If the investment required is 100k for 10%, the shark would say "you value
your company at $1m". Not true though. That's the value of the company after
the invested $100k becomes an asset of the company.

Ergo, before the investment, the company is valued at $900k.

