Anyone else love this show, but even more so how wide the band is on valuation?
I think my favorite was the banker/auditor duo with Jump Forward, especially when the banker whipped out the calculator for basic math.
It does bother me when Daymond John talks about "valuating" though.
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Kevin O'Leary is the only one who as any reputable cred. Robert whatever seemingly seems like a good investor, the other three are pretty shitty. I heard the woman go off on some interview about how school isn't important, so from then on I just blocked out anything she says. And the infomercial guy is a pussy. But other than that, entertaining show.
Shark Tank: Must See TV for Monkeys (Originally Posted: 04/05/2011)
Finally! A reality TV show that doesn't make you dumber for having sat through it. If you're not watching Shark Tank (Fridays 8/7c on ABC), you should be. I'd been meaning to mention this to you guys for a couple weeks when bankster mentioned that he was having lunch with Kevin O'Leary last week.
For those who don't know, the show is about a group of Angel investors who have a series of entrepreneurs pitch them for funding each week. Kevin O'Leary kinda runs the show, but the group of investors also includes Barbara Corcoran (real estate billionaire), Daymond John (of FUBU fame), tech multi-millionaire Robert Herjavec, and then a rotating cast of other investors like Dallas Maverick's owner Mark Cuban, redneck comedian Jeff Foxworthy (no idea why he's there, but...) and infomercial king Kevin Harrington. The thing that strikes me most about the show is the caliber of entrepreneurs they bring in looking for funding. I'm kinda blown away by how successfully these people have executed their business plans to this point, and by the fact that many of them have really, truly good ideas. I don't know what I was expecting, probably something along the lines of the next Pet Rock, but some of the products these entrepreneurs have put together are really top shelf.
One idea that springs to mind was a woman who created a Netflix-modeled subscription service for kids' toys. Parents sign up for whatever package they want ($45 a month, $65 a month, etc...) and they receive a box of new toys for their kids each month. It's a genius idea (and one the sharks funded, incidentally).
There's a good bit of drama in the show too. Not only do you get to watch people walk away empty handed when their company doesn't pass muster, you get to see the sharks eviscerate someone every once in a while. In particular, this past week an entrepreneur approached the sharks with a food grade odor remover. Great idea, terrible entrepreneur. As in, zero business sense.
The sharks took him apart. By the end of the segment, they offered to purchase his entire company on the condition that he'd be fired immediately. He ultimately refused the offer (probably a bad idea) but not before the sharks more or less reduced him to tears. Being an entrepreneur is hard, and you have to be able to take the bad with the good.
The show has a hysterical effect on my wife. She literally squirms through the whole thing. She is extremely non-confrontational (with everyone on the planet except me, of course), and she feels really bad for the people who lay it all out there and walk away empty handed. She tells me she hates the show, but she's right there next to me watching it each week, so what does that tell you?
I wanted to leave you with this clip, because this was a pretty inspirational story. The entrepreneur is a stay-at-home mom whose husband lost his job in the recession. She taught herself how to design and build custom toy boxes, and it was a hit right out of the gate. She needed funding to scale her production to meet demand, and the sharks actually fought over who was going to get to fund her. Pretty happy ending:
I wish I had a clip of the guy getting torn a new one, but ABC hasn't put that one out. I think you can actually watch full episodes at ABC.com, but I don't know for sure because it doesn't work outside the U.S.
Any other Shark Tank fans out there?
so basically Dragons Den?
Dragons Den, man the US should start getting some ideas on their own XD.
Dragons Den, the UK version of the Japanese original is by far the best that I've seen. You guys could check it out on youtube or even buy the whole series on Amazon. Torrents are also floating around too for you thievering computer-age kids. Many of the other versions do not come close i.e., Swedish version etc.
For anyone interested in the toy rental business, TechCrunch covered it a few days ago:
http://techcrunch.com/2011/03/29/mark-cuban-and-kevin-oleary-invest-in-…
They rip off the office.. now dragon's den.... what's next....
You forgot American Idol :)
Guys, relax. There are no original ideas in Hollywood anymore. My wife and I watched Body of Proof for the first time last night and ten minutes into it I looked at the wife and said, "Oh, for fuck's sake. It's Quincy with tits."
I think its an ok show. I do find myself watching a decent amount, I've probably seen most episodes (this isn't the first season).
I'm with you Eddie, the entrepreneurs make the show. I'm always interested to see what they've developed and to some extent how they pitch their product. It's interesting to see how savvy some are and how clueless others are.
The deal making part of the show turns me off a little bit. The sharks must have a lot of info before the entrepreneurs come on the show, but it's still oversimplified. The dealmakers often only ask what sales were and if they have a patent and then offer a bunch of money. The show then makes it seem as though the entrepreneur then just walks away wealthy. Obviously, that is not how these situations go at all.
Best show on TV hands down. But it pretty much boils down to three rules:
If you're black, Daymond will invest. If you're a girl, Barbara will invest. If you're a hot girl, Kevin will invest.
I like the show but I hate it when the sharks rape the entrepreneurs by buying 60% of their business for 50 grand
Why? Thats the post money valuation they think is fair for the return they need to rationalize investing in some no name 2 person generally pre rev concept. This is seed stage non tech.
A friend of mine pitched his business on dragons den. He said the experience was really weird. The sequence of events you see on tv is really contrived. He got an offer and agreed on tv, but later withdrew after realizing just how shit the offer was.
I'm a huge Shark Tank fan - definitely my television guilty pleasure. I both love and hate O'Leary, what a dick. Someone mentioned they feel bad for the entrepreneurs - occasionally I do too because they're obviously completely outmatched by the sharks and their deal making experience. However, some of the valuations these people come in asking for are nuts. Regularly someone walks in with no sales at all asking for $100k for 10% of the business. I'm sure most don't really even understand how valuations work, but still, seems a little rich.
Cuban was an awesome guest star, I definitely liked the dynamic he brought to the show (the guy is just crazy all around).
Haven't seen any of it except an excerpt someone sent me of a Stern kid getting raped by the sharks with his proposal.
I'm going to have to put this on my DVR. Thanks for the heads-up!
Saw an episode where a guy came in asking for 135k for 15% of the company. The guy did his pitch and then the sharks started asking him questions. Daymond asks him..."So you want me to believe that your company is worth $900,000??" and the guys jaw just dropped. Clearly in complete confusion. The guy said "ummm no no I never said my company was worth THAT much". Daymond then explains the valuation and math to him and then the guy says" oh well yea yea I believe its worth 900k".
Some of these people have no idea what they're doing. Some actually have good products and good brains.
This show was on 2 years ago so often you see reruns. They just started airing new episodes in March.
I was keen on pointing out that it's been aired throughout the world for the last, what, 4-5 years but then I saw everyone jumping on that already. Either way, I suppose one can learn, in small doses, certain aspects of dealing with pitching, investors and such so it's definately better than watching most of the crap that is out there these days. My favorite "Sharks" are Kevin and Robert, I'd love to have lunch with either one. The Canadian version of " Dragons Den" had a lot of great ideas brought forth but also many questionable and laughable ones but by far the best aspect of that version was the analysis and dissection of the ideas presented and the bidding wars. YouTube is filled with episodes in HQ and as someone mentioned I'm sure there are torrents floating out there also.
The one thing that makes me boil is how some people that go on this show behave and interact like they missed that one day of school when common sense was being handed out and then act all surprised when they get grilled about sales and over-valuation of their idea based on "potential". Either way, it provides for much entertainment and amusement.
I thought the guy who got destroyed last week was going to cry at one point.
3 of the sharks were like if you agree to this deal, you're fired (with 7% royalties). Twas epic.
I prefer Dragon's Den. O'leary is more genuine on the original.
I like the show and watched all the episodes last year. Didn't realize they were still running, thought it may have been cancelled, but I'm glad to see it wasn't.
Another show I like is Undercover Boss. I haven't watched the second season, but I'll catch up on it. Nice view into a company's operations and the cogs within the machine. The show likes to highlight how distant the executives are from the low-level workers and place an exec in various manual labor roles over a week. One of the company's featured on the show I liked was GSIC, which was recently acquired by eBay.
Watch Kevin crush the dreams in this ABC promo clip - Kevin is "Mr. Wonderful" !
Shark Tank - closing deal rate (Originally Posted: 12/26/2014)
Simple question, does anybody have an idea of what is the % of the deals that 'get done on the show' that will actually happen also in the reality? As in, how many deals that are agreed upon will actually not happen because the inventor/startup are misrepresenting the reality, the conditions are not met etc.
Any (unofficial) stats on that? guess it will be actually quite low...
thanks
Here you go:
http://lmgtfy.com/?q=%25+of+shark+tank+deals+that+get+funded
thanks.. butter on my head
"Shark Tank" interview type questions (Originally Posted: 05/18/2015)
Hi,
I have an interview tomorrow (not IB, but very similar role in terms of job function and stress) and am prepping for it now similar to an IB. I was speaking with an analyst at the firm and he told me that sometimes one of the VPs like to throw curveballs and will ask questions that are kinda like the ones you see on Shark tank. Before I could ask him to elaborate, something came up and we had to hurry up and end the call.
I don't watch Shark tank, so could anyone help me out here? What type of questions do they ask on Shark Tank that could be a good interview question? Assuming it is something ROI/what makes a good investment (quantitatively speaking) since that is what Shark Tank is kind of about.
Thanks
Shark Tank Show Question (Originally Posted: 10/05/2012)
Hello Fellow Monkeys,
Got a debate brewing in my bullpen and figured I would throw it out here. May have been a better post for the PE section but I know the volume in the banking forum is much stronger (admin feel free to move).
If anyone has seen the show Shark Tank on ABC you know that entrepreneurs come into the tank to ask for money for a certain percentage of their venture. For example, someone may go on the show and ask $30,000 for 20% of their business. This means that they are valuing the company at $150,000.
My initial reaction to that is the following (assuming no debt): - $150,000 pre-money equity valuation - Inflow of $30,000 of new investor money (primary shares issued) - Post-money equity value of $180,000
The problem with this is that the new investors that put in the $30,000 only own 16.7% (30/180) of the company even though they wanted 30% to begin with.
Or do the new investors get secondary shares so that the $30,000 just goes to the investor and the equity value stays at $150,000?
Thanks all.
I believe that technically when they say "you are valuing your company at xxx" it's just to make things easier to understand for non-financial savvy entrepreneurs and not referring to pre-money, but rather post-money. I'm under the impression that the math works something like this:
30k for 20% of business = "valuing company at $150k" = pre-money $120k (not $150k)
I've seen the show many times and I always figured they were talking about post-money valuation of the business with thier investment. So, if the deal is $30K for 20% of the business, the shark would fund $30K and own 20% of the business post-transaction. All the other shares that have been previously purchased would own 80% of a business worth $150K, or $120K. If the business owner had raised less than $120K before the show, then all those shares would appreciate in value and if they raised more than $120K before the show, those shares would now be worth less. For example, let's say the owner raised $90K to start their business. Pre-show, those shares owned 100% of the business for $90K. Then, the shark buys in to the business and sets the new valuation at $150K. Now, that ownership that used to be worth $90K is now worth $120K because they own a smaller percentage of a more valuable company.
Prob over thinking a TV show ... what you outlined makes sense ... thanks
Heres an interesting tidbit about the show that I didn't know, "In order to proceed, they were required to enter into an agreement with, the show’s producer, that would have given Finnmax the option either to receive a 2 percent royalty on the operating profits of the company or take a 5 percent equity stake." http://boss.blogs.nytimes.com/2012/09/19/passing-up-the-opportunity-to-…
Where does the Shark Tank rank in VC Prestige? (Originally Posted: 12/14/2014)
Any idea how tough it is to get a gig sourcing deals for the Shark Tank? I know there a super-early stage shop but they have some serious players in the industry cutting tasty deals. The group's absolute returns seem pretty strong based on their "update" segments.
They take deals that will entertain their audience. Many of them make the air because they're clearly so stupid that the sharks can just make fun of them.
I hear the hours are terrible and getting to partner level is almost impossible unless you own a Championshop caliber NBA team
Cuban was a solid lateral hire. Shop's not to big on recruiting out of B-School
Shark Tank (Originally Posted: 01/15/2010)
Has anyone seen this show, it is on the ABC network. It is a show about entrepreneurs who pitch their small businesses to venture capitalists in exchange for an equity investment. Entrepreneurs are also asked to give up a percentage of their companies' equity in exchange for the investment. Thought alot of you may find it interesting.
http://abc.go.com/shows/shark-tank/about-the-show
not really my idea of entertaining tv, but I guess some people dig it...
There is a BBC show with the same premise called "Dragon's Den". It's shockingly boring.
Thanks for this. I used to watch a show on Mojo HD called "Startup Junkies" which was pretty good.
http://www.hulu.com/start-up-junkies
Know one of the guys that went on it... Lot of 'Hollywood' involved with the show and his deal with one of the sharks didn't even go through.
i assume u knew the hunks for junks or whatever
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