Am I correct in feeling that 9/10 offers on this show, especially from this...

askme
askme

I'll give you an offer Veeky Forums; 10,000 for 99% of your company
With one contingency: I get 25% of your profit until I get my money back, then 5% after that

Am I correct in feeling that 9/10 offers on this show, especially from this kike, fucks over the entrepreneur?

How do the deals made on this show compare to what a "real world" investor would want? Are the Shark Tank deals more or less lenient?

Emberfire
Emberfire

What they don't tell you is the sharks get a percentage of the company just from being on the show. If you don't accept an offer, you still lose money. I think it's either 5 or 10%.

CouchChiller
CouchChiller

when they ask for royalties they typically don;'t ask for more than 50% of the company. why would you ask for 99% and then royalties?

AwesomeTucker
AwesomeTucker

Savages

Ignoramus
Ignoramus

I'd take that offer. With 1% I wouldn't need to do any work because well fuck ... it's not my circus anymore.

Kevboy would need to do all the work to get his investment back and I could lean back.

Fried_Sushi
Fried_Sushi

Yes, virtually every offer that O'Leary makes is profoundly unfair.

Soft_member
Soft_member

Owning a stake worth $100

askme
askme

Sauce?

Supergrass
Supergrass

This has been confirmed by several people on the show

MPmaster
MPmaster

I remember one episode when the sharks basically told the guy in the front: "yeah, here is our offer: we buy the company, we fire you because you suck at being a salesman, you get royalties, which are some pennies, but hey, you're free to start a new company and get free money for the rest of your life"!

Would you, Veeky Forumsraelis?

massdebater
massdebater

I think there is significantly more debt capital going on then meets the eye. All of these random app and product companies coming on with some outlandish $10 million valuation for something no one has ever heard of.

Booteefool
Booteefool

it doesn't compare shit to the real world.
In the real world you're not talking money and % with someone unless you're ready to sit down. and you can't do shit with a couple of hundred thousand dollars either, wtf is the point of a VC for 10-100k lmao

SniperGod
SniperGod

OP here, I don't really understand the point of the show. They turn down so many companies for not having astounding sales figures, but they're all very recent start ups so only tens/ hundreds of thousands in sales is understandable. Any company with the momentum they're looking for should in a position to get proper investors without the show, and I assume the reason people go on it is because they're too small for the bank or others to take them seriously.

Harmless_Venom
Harmless_Venom

Lot of uninformed autistic faggots around here

1. The 5% deal just for being on the show has been removed. Mark Cuban put an end to it not only for new pitches but retroactively for all of the previous ones as well.
2. Kevin O'Leary makes good deals a lot of the time. He simply wants his initial investment back. Most people with autism, for example just about everyone who has posted so far in this thread, have no idea how business deals work.

idontknow
idontknow

The point is to identify shows that could have incredible profits, which isn't only about sales, but also costs and market potential.

Something could sell like millions of units, but if they only gain like a few cents for each unit, is hardly worth the effort. And similarly, if there's a good product, but all the major distributes refuse to sell it because reasons, then there's no point.

A business that have few sales, but good margins, and haven't sealed a deal with large store chains is what these guys are looking for.

Stupidasole
Stupidasole

go on show just for exposure and as a marketing strategy
turn down their offer

Spamalot
Spamalot

I think that's what the previously mentioned 5% regardless was supposed to deter.

takes2long
takes2long

The kike Kevin knows how to Jew them.

A share of a company means that you own a certain percentage of the profit. That's all that means. So when he asks for 0 equity but 20% of all profits, he is basically getting 20% of the company and giving himself a dividend with a 100% payout ratio. If you adjust for a less that 100% ratio, then he is actually getting MORE than 20% of the company. Maybe the entr owns the company on paper, but the entr's shares are now worth less than 80% original value.

And if he also gets an equity percentage on top of that, he's double jewing them.

And no matter how successful the company is, he still is getting a great deal.

haveahappyday
haveahappyday

so i'd go on the show and tell them give me 100k for no stake and no profits. they'd be like lol you want 100k for free but we all know they already have 5% and the show basically becomes an ad program for me

happy_sad
happy_sad

FALSE.

That actually used to be true in the first seasons but it wasn't for the sharks, it was for the network.

In season 4, Cuban started a media campaign to change it and the network had no choice but to waive the clause. It also applied retroactively so they also gave back the percentage to the companies that made deals the first seasons.

It worked because the companies that started to show up after that were much better.

RumChicken
RumChicken

Bullshit, nothing of that is real, only the people and their roles, nobody decides to buy shares in fucking 5 min.

Ignoramus
Ignoramus

The pitches last over an hour. You just see the edited version.

CouchChiller
CouchChiller

Ok, reality shows are real.

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