Are the Sharks actually good investors?
Вставка
- Опубліковано 6 жов 2024
- Try ChartMogul: youtube.slideb...
--
The platform for founders to scale their startup ► yt.slidebean.c...
Shark Tank Company Fundraising Report for download ► youtube.slideb...
--
📣 Our UA-cam subscribers get a 10% off in our Design Services: yt.slidebean.c...
#startups #slidebean #sharktank
--
Shark Tank has become a reference in business TV. It's packed with emotions, drama, and the occasional success story.
While the show is huge and there's no denying the massive cultural impact that Shark Tank has had, I have one question.
Does this show really work? Does Shark Tank make a difference for all the companies desperate to participate?
To answer this question, we had to dive deep, real deep.
For weeks, we scoured through the 1187 companies with the courage and determination to get on stage.
We analyzed everything from their products, to how much money they were asking for and how much they were willing to part with.
We checked what happened to each of the $207 million that the Sharks have invested, from the original six to the 25 special guests.
Yes, it’s a massive spreadsheet.
Then, we went one step further.
With each company, we checked how they did after going through the show, and how they’ve done after the years.
So much happens when you turn off the TV and what we found is fascinating.
Throughout its first years, this show was the epitome of a dog-eat-dog world. The production company charged companies for just being on the show.
And, one would think that having a yes from the Sharks is all you need, but no. In fact, landing a deal on the air often means nothing.
These are the real numbers behind Shark Tank in this episode of Company Forensics.
--
Follow Caya:
/ cayahere
/ caya_here
📣 Our UA-cam subscribers get a 10% off in our Design Services: checkout.slidebean.com/community?
He danced around giving accurate numbers (the average successful asking price) and the graphs were occasionally made so as not to give away too much useful information. And that is the genius of this video - to allure prospective shark tank applicants and entice them to purchase the data set which Slidebean created and analyzed. This video isn't a breakdown of Shark Tank, its a business pitch itself.
Lmao nice catch
It's both. That's the theme of this channel. Slide always has to pitch themselves because thats the point of the channel.
I also don't think it's factual, I've heard that those 10 min pitches are highly edited for tv and actually go on for sometimes hours.
Great video (again), had no idea about the deals the applicants had to make with the show itself to even get broadcast. US docudrama is so cynical.
I love how in-depth these videos are I would have never though of looking in to the details of how it all works.
That's how Murica works
I don't think the conclusion is significant when you compare " 50% of companies fail within the first 5 years " to "57% and 62% of companies that appeared on Sharktank do great" considering the finalists of Sharktank are well-screened through multiple rounds, likely making them better-than-average propositions in the first place.
The marketing appeal looks like the most significant factor
Yeah that's what I've been thinking as well, they're already choosing the best options, so ofc the % success rate will be high, regardless of being on TV or having a deal at all
But that’s exactly what he was praising The sharks for isn’t he? Their ability to pick good businesses not their ability to make them successful
@@detectiveMM No he concluded that the program is good for business..
The point is obviously appearing on 'Shark Tank' is worth due to the exposure and the process, in spite of the downside - like relinquishing a non insignificant amount of the share of the company just for the being a participant retained for the show, regardless of whether or not you end up on TV.
@@jizzlecizzle1388 The video hasn't shown any data that can prove this. They're already picking the top businesses and the video showed most of the businesses that appear on the show are successful.. Well, maybe that's because they are picking the top choices in the first and not due to their appearance on the show?.. So yeah still the video didn't show any data that proves what you just said.
The pitching time isnt just 10mins, they cut it down to that time for tv, it usually lasts 40 to 1hr.
Had loads of fun making this one: I don’t expect I’ll ever be on Shark Tank, so green screen is as close as it will get.
Also dusted off some of my old 3D animation skills.
Do you mean to tell me you to make the entire video on your own? I thought you had a team involved, regardless it is a very impressive channel you have. I am always trying to learn from your channel and implement on mine.
the 3D animation was kool. you should do more of it 😉
With AI who would invest in slidbean?
Amazing video as always 👏
"I would really like to prove it wrong - but I couldn't" - loved the honesty!
the success-rate should be applied to the 40k companies which apply to compare against the 80% start-up failure rate. The pre-selection process is indeed a part of a start-up process, but only looking at aired and approved shows is misleading.
Can’t agree with that one. The 40,000 is just a completely random pool of companies: some might not even have products or formed teams by the time they apply.
I’m not even sure how many we can call ‘companies’.
@@cayahere Agree, valid argument. However if we assume that at least 50% of the 40000 is at least equal to have the title as a "startup" for the sake of comparison. I do get the argument that of the companies which aired "a lot" make it vs. not make it which is definitely a better success rate than in the "industrie". Thanks for the video. I would be curious of how many of the 40000 applications which did not make it in the TV the success-rate is
Wow! Shark Tank indeed has been misleading! Thanks Slidebean for disclosing this. I knew many deals were not closed even though on air they did. But the numbers were way off in my mind.
Shark Tank should disclose the status of their deal after the season or sometime later.
And about the royalties, damn that's crazy to continue paying them, but also makes sense that these startups got free marketing for their product and the company.
I dont like the royalty . One of the sharks like to ask for it alot. I would like to own 100% of my business
@@LILDroidDEX then….don’t go on shark tank. Though, by your simple conclusion, I would venture to say you don’t understand how private equity or any of this stuff works.
If you could release the data, it would be interesting to find the correlations and reasons if shark tank actually helped.
As you said, even if they don't get the deal and get heckled by the sharks, just the air time showing their products might get them the needed sales or other investors just to keep the company floating and improving.
And considering such a small portion actually get through to the actual filming, that usually means their companies are that good or good enough to fool the shark tank (which is in itself impressive).
So if you're comparing a carefully but meticulously filtered group of companies to the average company out there, the differences will show.
I mean... let's say you select a small number of more fit than average people, but not actual professional athletes. Those people will perform better in sports than your average person.
This was interesting, I wish you had gotten a chance to cover the arrogant wine in a glass guy that came back into the tank twice. He never intended to make a deal with the Sharks, his only plan was to capitalize on exposure from the show. I'm sure there may be other memorable characters from the out there, good and bad, that would make for an interesting sequel video to this to learn from
Joseph Falcone is the arrogant wine entrepreneur. He ended up stealing 500k from investor and went to jail.
You guys are going to get a million subs by end of this year.
Wow the 5% equity deal or 2% royalties (forever) just to be on shark tank proves that there is no such thing as a "free lunch" in life! Reminds of that famous quote from that 'social dilemma' documentary- if the product is free, then you are the product.
And you'd still see Mark get mad at founders for coming on the show just for marketing instead of taking investment every so often; if I paid to get marketing in equity/royalty then you can't get mad at me for taking what I paid for
This rule ended in 2013, 9 years ago. This guy didn’t do his research well
It’s TV…so it’s absolute BS. Believing TV is real is like believing a magician performance
Would be cool to know the success rate of each shark. Which ones has the most business successes or failures. How much money was made, percentage of investment and money lost.
Charging equity just for appearing is a bad deal for Shark Tank. Quality companies will not accept this deal and only the low-quality, desperate ones will.
I saw a video where Damon was saying that pitches are sometimes 1:30 hour long
I’ve seen a couple of Shark Tank episodes and was intrigued initially. Then by the third episode, it was clear that it’s just entertainment by stomping on peoples hopes and dreams. American Idol formula.
For every 1000 mukbang channels there is a Slidebean. Gotta appreciate content of this quality 👌
believe it or not, recently i watched shark tank's video like a lot, and few minutes ago, i got slidebean ads on youtube, i have no idea what is it so did some research, then 20 minutes later, slidebean publish this video
this algorithm is CREEPY af
We call it a marketing success story 🤗
The algorithm is effective. To have a balanced view and opinions, out of UA-cam and it's content. It helps prevent toxic fan groups...and gives you all available sides of the story.
Creepy: unknown that affects you...go see Gaming Theory
I think slidebean and shark tank share interests like pitch, investor and a couple of the in-betweeens. Also their youtube audiences are typically identical. Its not ironic that the moment their keywords intersect (for this case "shark tank"), both Shark tank and Slidebean fans should not see this videos' recomendation. Its also important to note that the video's meta data sync onto their system first, while the video itself is still processing in the background. The algorithm knows you will want to watch it before its even available.
At 9:30, you mentioned that healthcare comes second but the chart shows clothing at 11.8% which is higher than healthcare at 9.7%. So, food and beverage indeed comes first at 24%, clothing comes second at 11.8% and kids products comes third at 10.3% Healthcare doesn't make it until the fourth position
The earliest part of the video was super creative 👌 👏 🙌
Hey caya. Great video as always, though I was looking forward to amazing graphics as always as especially for this video the Data Visualization was really crucial. Nonetheless, great research. Can you by any chance open source the raw data you gathered from Shark Tank for Research and Education purposes?? It would be amazing to analyse and find certain trends, let us say using sectors, or demographics, or anything else. Regardless, great video!
Love Xero shoes. They are amazing. I had no idea they were on Shark Tank.
I mean man if you're vetting companies that hard to even get on I'd bet their business in general is in the 75th+ percentile of overall businesses so the low failure rate isn't really shocking... Like if those businesses failed as much as any other business then there'd be a huge problem lmao
If you're going to accurately compare the Sharks, then you have to use "like-kind" numbers. You can't say 80% of startups fail as a comparison because most of those fail for not having the funding, which is the problem the Sharks solve.
The better comparison would be to compare the Sharks against something like YC or another VC.
1 piece of the puzzle is missing : deal structure. When a shark says "I invest $x for y% of your business" they are unlikely to get common shares like the founders. Many sharks have done convertibles.
Could you please expound on this?
I really love your production. I can see the amount of money you put into it.
Not sure about this Shark Tank but from the Indian Shark Tanks, Start ups does not discloses the deal they want to anyone nor does sharks knows about the coming businesses. So There might be a Deal on Show but it is subjected to the due diligence process from Shark them selves.
This is the first Slidebean video and analysis I've liked the most, very nice
That is A LOT of forensic work
Haha that was a good one! I was like "I don't remember this episode."
I would love to see if the same compares for dragons den (UK equivalent)
when first season of Shark Tank India concluded last year a YT channel @India in pixels made a great data centric video on it but you guys gave more industry insights , Slidebean kudos to you and for that reason I am in.
This could be a case of survivor bias, only the companies that make it into the show may be the reason for their success because they were able to get through the application process and not weeded out for things that usually cause small businesses to close.
Agreed. I see no real statistical significance in what he mentioned
Great job on the video Slidebean! The intro was hilarious and I'm already excited for next week's video.
That intro was fire!
Such a data packed forensics episode. Amazing 🥳
for all the algorithm u deserve more engagement.
Great depth as as always. Always keeping honey and not necessarily throwing in your bias 🔥
10 mins are aired.... Mark has been saying each pitch goes for an hour sometime...
Amazing research! Intro was super engaging.
Man I wish we had a thumbnail collection for all of the ones you put up
Great video this show is could be seen as a marketing tool for these companies and for these sharks to find new deals off air etc
But it can lead to bad marketing after all that effort and time. As much as I would like to believe there is no bad marketing it is simply not true.
@@Thebreakdownshow1 What would make it bad marketing?
Quality went up, we definitely notice. Great job
What an analysis 🙏 respect
Great video, I’ve been a fan of the show for more than 10 years.
Where can I get a copy of your work ???? Subbed to the channel !
The truth is whether you get the deal or not, your business can be successful or a failure.
Probably most people that goes their either
1.) For the resource (money, management, etc.)
or
2.) Exposure
The more intriguing part is what happen after
Oh this is a really interesting concept
Really would love to have that your excel file... 👍
Guys, I love you and your videos! You doing something, that no-one does!!! Thank you
Incredible video, great work
Didn't get much information about the ROI. Only the fact that the businesses are less likely to fail.
You forgot to talk about your product Slidebean in this video and for that reason, I'm out!
They usually are there for much longer than the 10-13 minutes that air
This was dope. Thanks.
The O Leary guy 🤣
Nice analysis
You didn't really answer the main question that is the title of this video ("Are the Sharks actually good investors?"). You basically just looked at the stats of outcomes but not at all whether the sharks themselves helped improve those stats in anyway vs just the exposure on TV. They could be horrible investors and the TV exposure still have helped many businesses - who would know? I was hoping you actually had some real information about how founders felt working with the sharks after closing a deal or stories about how a shark's involvement in the business made a difference (vs just pure cash).
10:36 You might want to spell check that spot.
I watch Shark tank because I hate the Sharks, I want the businesses that get rejected to go on to be huge successes.
Vetting process definitely skews the data to weed out the weaker companies. Should be much much higher than industry standard.
If you are a VC it pays real well to become a guest investor at sark tank. If increase the deal flow in traditional sense!!
I watched Canadian TV and that show was on the loop practically all the time. Seriously nothing else going on in the country ?
If I may ask, where did you get the data from?
@slidebean Chartmogul sponsors your videos, but you don't integrate w/ Chartmogul. We can't put our ARR/MRR charts in our pitch deck.
Oh dear...
And you'd still see Mark get mad at founders for coming on the show just for marketing instead of taking investment every so often; if I paid to get marketing in equity/royalty then you can't get mad at me for taking what I paid for
How do you create the charts for your videos
Amazing episode, great work
Yeah. They go on the Tank to take their business to the next level
Damn 😃 … I like the way you analyze stuff man - It's impressive, really impressive ! ! ! 👏👏👏👍🏻😅😅😅
What’s the point of zooming in on the lowest shark tank offer if you couldnt even see the offer amount?
How much did you invest on your studio equipment! I want to have a studio and production like yours
@ꜱʟɪᴅᴇʙᴇᴀɴ scam!! This is how you know a scam reply
Awesome awesome! Much awaited topic!
One minute into the video and I already like it
Excellent video but why does slidebean look like an exhausted ninja in the thumbnail 😂
You say exhausted ninja, I say method acting :P
😆but it works though🤣been watching shark tanks videos and was a bit surprised if slidebean actually made it or pitched in.😅 great thumbnail🎉
Where do I find this spreadsheet?
Amazing videos... Subscribed
The pitch to the sharks takes hours not 10 minutes
We need database. Not just hype.
Same is happening in Indian shark tank ,they are not here to raise money but to advertise ,it's pure advertisement.
Thank you!
very interesting insights!
Do you have that spreadsheet
Excellent video! 👍🏽
Always informative
ChartMogul link is not working.
Thanks! Here's the right link: youtube.slidebean.com/shark-tank
Should have been a longer video
Well, that's the cost of doing business.
It's not the sharks, it's the tank.
Nice topic
Please spend more time researching the topic you’re covering. First off the pitch is not 10 minutes the Broadcasting time is 10 minutes (based on country) but they shoot this over 6 hours and edit it down.
Can’t wait for Mr Wonderful to do a reaction video to this
i still love dragon den more than shark tanks
LARQ did get a deal with Kevin and Lori
Sit and funnel to cherry pick the best. Tough gig.
Great topic ❤️
Why...i cant have 1 reality tv show that isnt fake. Not 1. Fuck im going back to pure fiction.