Shark Tank insiders reveal more of the show’s secrets
Shark Tank judge Janine Allis made headlines when she revealed what goes on behind the scenes at the popular reality TV show, piquing the interest of many of fans and posing an interesting question – how many investments are a success?
Well, it turns out not as many as you thought.
Fairfax Media analysis revealed that of the 50 businesses which appeared on Shark Tank, 27 received investments when the camera was still rolling. But of these only four went ahead.
While Channel Ten claims the sharks have invested more than $21 million over the show’s four years, Fairfax’s investigation showed a different story, revealing the jduges had only parted with $625,000 for last year’s series.
Barry Tennant, who was employed by Shark Tank's production company Endemol Shine to do research for the show’s first three years, said any due diligence on the businesses is limited before they appear on air before the judges.
"I don’t think the applicants were aware of the reality of what being on the show was," he says.
"The schedule for the production company to put a show together you just don’t have the time to put a full due diligence together."
"It is really done by application you don’t have a chance to meet their accountants or financial controllers. I am sure a few of the businesses have benefited but mainly from the exposure not financially. It is very, very easy for the investor to make an offer but very easy to bail out of that commitment once the show is aired."
A spokesperson for Shark Tank's production company, Endemol Shine, also spoke to Fairfax Media and said it’s important to remember the shark’s own money was on the line.
"As in any proposed business investment, even one where the pitch and deal is filmed, comprehensive due diligence is required before the investment proceeds," the spokesperson says.
"There can be many reasons for a deal to not proceed. That said, even where deals do not go ahead, the Sharks often provide their assistance, mentoring or invaluable introductions for entrepreneurs."
What are your thoughts? Do you watch Shark Tank?