Answer by Halle Tecco:

I don't just watch Shark Tank, I take detailed notes.

There were so many nuances and patterns in the show (and it looked nothing like the deals I was seeing as an investor), that I decided to start tracking the actual data (see: Shark Tank Investment Data).

After six seasons and 495 companies, here's what I've learned:

Founders

  • Half of the founders on the show close a deal with the Sharks (although after the show, many deals fall apart during diligence)
  • 60% of the companies are pitched by a man
  • 25% of the companies are pitched by a woman
  • 15% have both a male/female pitching
  • Women are slightly more likely to close a deal on Shark Tank (53.6% of women closed a deal, versus 48% of men)

Deals

  • The average investment is $260K, the median is $150K, and the range is $10K – $5M
  • The average valuation is $1.1M, the median is $500K, and the range is $14,286 – $25M
  • Women-led companies receive the lowest valuations on average, at $760K
  • Men get the highest valuations, at an average of $1.5M

Categories

  • Shark Tank companies generally have a physical product
  • The most popular types of companies on the show are Food & Beverage (21% of companies on the show), Fashion/Beauty (19%), and Lifestyle/Home (14%)
  • The types of companies that are most likely to close a deal are Fitness (57.5% close a deal), Green Tech (56%), and Healthcare (56%)
  • The types of companies least likely to close a deal are Business Services (23%), Pet Products (41%), and Software (45%) 

The Sharks

You can check out the raw data I've collected here: Shark Tank Investment Data

What have you learned from watching the television program Shark Tank?

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