I finished collecting Season 5 data tonight and I found it an absolutely interesting season. First of all, I think that most of what people think of as Shark Tank comes from this season. Mr. Wonderful is… as wonderful as always and has his almost trademark royalty deals.
But let’s see what the numbers actually say.
As I mentioned in my last post about finishing Season 6, it really does look like Robert’s investment of over $11m was a fluke. This season he only put in $2.78m. I’ll be curious to see how seasons 1-4 fare but I can’t imagine it gets any higher than Season 6 did. Check out the chart below:
And though I always think as Mark Cuban as being the one who will swoop in a give people exactly what they’re looking for, it was actually Lori Greiner who did it more often this season, five versus Mark’s three times. Although it’s interesting is that he only holds a slight lead over Lori for all the deals that I have cataloged so far, 13 versus Lori’s 12! Who woulda guessed it? I was certain Mark would have the lock on this, I mean, I’ve watched all the episodes to get this far. But, nope. It would seem the actual numbers tell a different story.
It’s reasons like this that we’re doing this project. Memories can be wrong. But numbers never lie.
Lastly, I want to introduce a number that I like to call The Bite, the amount of a company’s overall value that is lost by bringing on a Shark for an equity stake. For those who don’t know how that works, a company’s value is determined by how much an investor is willing to pay for a certain percentage. So that if an investor is willing to pay $100,000 for 10%, then the company is theoretically worth $1 million dollars.
People often come into the tank wanting to give up 10-15% percent but walk away having handed over 25-50% of their companies instead for the same amount of money, drastically altering the overall value of their businesses.
When I think of The Bite, I usually think of Daymond John, who again in my memory, always seems to take an apparel company looking to give 10-15% away and asks for 33.3%. Which is quite a bite…
But when I crunch the numbers on the values before and after, once again, I was completely surprised!
It’s not Daymond or Kevin who take the most value but actually Barbara Corcoran! When comparing value in dollars before and after, Barbara actually took a 47% bite! And Mark Cuban, who again I think of as just offering exactly what’s being asked for, took a whopping 34%. Kevin only ranked as the 4th worst bite with the best being Lori who took just over 8% of total value for all her deals on Season 5.
Honestly, I didn’t see this coming but it’s pretty great to see. And when you step away from what the sharks say on the show versus what they actually do, maybe those coming into the tank should work more on courting Lori if they want to keep their value intact than the seemingly nice Barbara or tech savy Mark. Because their bites will hurt a whole lot worse.
Stats on the temporary homepage will be updated after the next episode airs.