Highlights
- Only 100 pitches are presented to the judges on Shark Tank every year.
- The entrepreneurs appearing on the show may have previous experience in the industry.
- The pitches are not presented spontaneously; pitchers are given time for preparation.
The unending love viewers have for Shark Tank can be ascertained from the fact that it is all set to enter its 17th season. The audience love watching entrepreneurs pitch big ideas to the Sharks.
As a reality show that has been running for over a decade, there are many misconceptions about how Shark Tank really works. Some of these assumptions have fueled myths that aren’t actually true.
The Truth Behind Shark Tank Myths
If you are a regular follower of Shark Tank, you must have also witnessed that the show maintains a set format.
Entrepreneurs approach the judges with their brand new business ideas, who then listen to their pitches for a fixed time and then may or may not invest in it. But there is a lot more that will break your preconceived notions.
Here, we will debunk 5 of the biggest myths of Shark Tank.
1. All The Pitches Are Aired
Every year, almost 3500-4000 hopeful entrepreneurs send out their applications to Shark Tank. They do so by either applying directly on the website or attending auditions conducted throughout the country. Out of them, the makers remove thousands of applicants after an initial review of their profile and their business.
Even if you do get selected eventually and get a chance to pitch your product/company in front of the Sharks, there is no guarantee that your pitch will come on television. As per Daymond John, they get to assess about 150 pitches every season. However, only about 100 lucky entrepreneurs find a place in the actual episode.
The main reason for this is the show’s run time of about 42 minutes. Four pitches are telecasted in each episode. The total episode count is somewhat between 20 and 24.
2. Every Pitcher Is New To Entrepreneurship
It is presumed that all the contestants who present their company/products in Shark Tank are brand-new to the world of entrepreneurship. But this may not always be true.
Numerous business owners make it to the investors even after having a decent previous experience in the business arena.
An example to support this fact is Doorbot (later Ring) owner Jamie Siminoff, who already owned two companies (Phonetag and Unsubscribe.com) before coming on Shark Tank.
But this did not stop his Shark Tank endeavor in any way. Thus, even if you already own a company, you can try your luck on the show with a new venture.
3. All Deals Materialize Into Real Deals
As a viewer, when you see a Shark shake hands with a pitcher, you might believe that the deal is final. But this is not true. In reality, there have been several cases where the deals have not closed after the episode aired. Multiple reasons result in this situation.
At times, the entrepreneurs may refuse to accept the promise made on the show. Further, they may go ahead and make any compromises if demanded by the Sharks. They may even have arguments about funds or licensing.
Next, the investor/s only pour their money after making a thorough financial check into the company, the claims made by the pitcher on the show, and the potential future outcomes. If they feel the deal negatively affects their hard-earned money in any way, they may choose to step out.
4. Only Fully Developed Products Are Accepted
It is normal for you to assume that only those products that are fully developed get a chance to be presented in front of the panelists. But this is not true. Both developed and prototype products/ early-stage products have been accepted by Shark Tank alike.
For example, young entrepreneur Cassidy Crowley presented one such prototype product. Seeking a $50K investment for 50% equity in her baby spoon product, ‘The Baby Toon,’ she presented the prototype samples to the investors.
The deal was locked with Lori Greiner for the same valuation, i.e., $50,000 for 50% equity. The judges were hugely impressed by her confidence and presentation.
This shows how prototype products are accepted by the judges on the show.
5. All The Pitches Are Spontaneous
You might think that the pitches we see on the show are prepared on the spot. But the truth is that the makers ask the entrepreneurs to be prepared in advance. This is done to avoid any confusion or misinformation during the actual pitch.
But another thing to note here is that you get only one chance to present the pitch to the judges, and no retakes are allowed. This is why, before appearing in front of them, you must be prepared with the basics, including the valuation, sales figures, debts (if any), and profit margins.
Failing to do this, you might lose interest in the Sharks, who ultimately would not propose a deal for your business.
Shark Tank Myths vs. Reality
Shark Tank has built up numerous myths about how the show works. But the truth is often very different from what viewers believe. Below is a quick look at some of the biggest myths and the reality behind them.
| Myth | Reality |
|---|---|
| Every pitch is aired on TV | Only ~100 pitches are broadcast per season, out of thousands of applications. |
| All contestants are new to business | Many contestants have prior business experience (e.g., Jamie Siminoff of Doorbot/Ring). |
| Every deal closes after the handshake | Many deals fall apart after due diligence or renegotiations. |
| Only finished products are allowed | Shark Tank often accepts prototypes (e.g., Cassidy Crowley’s Baby Toon). |
| Pitches are spontaneous | Entrepreneurs prepare and rehearse in advance, though they only get one take. |
The Reality Behind the Shark Tank Show
The popularity of Shark Tank has always kept the viewers engrossed in digging into details related to the show. While some may be true, there are several myths related to the show that are viewed as real.
With this blog, we attempted to debunk all such false notions. From the limited number of pitches that air to the fact that not all deals actually close, these insights give fans a clearer picture of what actually happens before, during, and after the show.
References
1. Behind The Scenes Of Shark Tank As A Startup, Daymond John, The People’s Shark
