Pitching for investment is complex.
I’m a big fan of a British TV show called Dragon’s Den. It’s entrepreneurs pitching to investors. It started in 2005, the same year my first startup Vizero came 2nd at the Imperial College Entrepreneurship Challenge. It’s a fun watch and a lesson on how entrepreneurs present business ideas. Of Course the episodes are heavily edited for brevity and entertainment but we can still glean insights.
It started 2001 in Japan, followed by the UK, and grew to 40 markets. I'll share my 6 favorite startup pitches from Shark Tank US and my analysis. But first - the sharks!
Mark Cuban (MC)
Pittsburgh born Mark is the owner of the Dallas Mavericks basketball team. He is the wealthiest shark with a net worth of $5.4BN. He built his success from computer software and online businesses selling cable TV, medicine, and entertainment but has since branched. He invests with his head and his heart seen when he speaks about his children.
Lori Greiner (LG)
Lori from Chicago is an inventor and business woman with over 100 patents from the plastic earring organizer that paid for her college loans to products in electronics, travel, and home. She is valued for her product knowledge and QVC expertise.
Barbara Corcoran (BC)
Barbara had worked 20 jobs by the time she was 23. She built her wealth in real estate selling her firm for $66MM in 2001. She's a prolific investor with 80 deals on the show according to her website. We can all learn about entrepreneurial drive from her reaction to being rejected from the show before it aired.
Robert Herjavec (RH)
Robert was born in Croatia and immigrated to Canada with his family. He had a tough upbringing due to poverty and language difficulties. It imprinted a toughness on him to never complain. Working through the ranks of software companies he joined he was promoted to leadership roles and built his wealth through their sales.
Daymond John (DJ)
Daymond hails from New York and started a clothing company, FUBU, in his house supported by his mother who taught him to sew. Making T-shirts and hats at night and at Red Lobster restaurant during the day his brilliance shines in marketing where he lent clothing to rappers featured in music videos giving his brand a boost. Since its inception it's made over $6BN in sales.
Kevin O'Leary (KL)
Kevin is a Canadian businessman also known as Mr Wonderful. He founded Softkey, a software company, becoming a major player during the 90s through hostile takeover bids and eventually acquired by Mattel making him a multimillionaire. He invests through his fund setup in 2008 together with his brother Shane. He's the strongest advocate for royalty payments on the show.
These sharks appear in almost every episode. Some only appear periodically like Nirav Tolia (NT) who built consumer internet companies like Yahoo and Nextdoor, the world's largest local social network, and Daniel Lubetzky (DL) active in food, as the founder KIND snacks, and civic movement, such as OneVoice.
Here's an overview of the 6 shark tank pitches with their initial offer and accepted bid for those which were successful. Let's get pitching!
Shark Tank Startup Pitches
Breathomether: Season 5 Episode 2
Serial entrepreneur Charles Yim pitches a portable breathalyzer that connects with a smartphone and measures blood alcohol content (BAC).
Breathometer lessons
Charles does a great job showcasing his solution to a well established problem, his credibility, and a strong market response.
Offers champagne at the beginning of his pitch
Presents a scenario that everyone can relate to
Demonstrates an easy to use his solution to a real problem
Proves demand with $140k Indiegogo campaign
Expands on functionality in response to a shark's question
Builds credibility with previous exit and raising $0.5MM from angels
The main lessons come from the eager shark investors.
MC highlights his sensor expertise with his Motionloft ownership
MC says other sharks are 'dumb money' and want to go alone
MC offers $500,000 for 20%
DJ explains that it's hard to work with the other sharks
DJ offers $250,000 with unlimited manufacturing for 10%
KL offers $250,000 for 15%, then 3 others join for $750,000 for 30%
KL proposes 5-way split for $1MM round, MC majority, and sharks need a 'really good offer'
Final deal is $1MM from 5 sharks with $500,000 from MC and rest split evenly among the other 4
Given the eagerness of the sharks and comments made privately during the call there was likely room for a better deal for Charles. It is rare that the sharks collude. It is also rare that MC makes an early offer.
Breathometer epilogue
In spite of the pitch securing $1MM in investment and venture generating sales of $5.1MM it failed after a series of controversies leading to a charge by the Federal Trade Commission (FTC), founder mismanagement of funds, and poor execution.
“I’d look at his Instagram and he’d be in Bora Bora ... Two weeks later, he’d been in Vegas partying, and then on Necker Island with Richard Branson. I’d text him, like ‘What the f--- are you doing? You’re supposed to be working, Yim would reply that he was “networking” on behalf of the business. The excuses didn’t quite hold up: Next thing you know, all of the money’s gone.”
Mark Cuban on his Breathometer Investment
TheMagic5: Season 13 Episode 4
Danish entrepreneurs Bo Haaber and Rasmus Barfred pitches custom-fit swimming goggles made using a 3D scan of the face for a perfect fit.
TheMagic5 lessons
Bo and Rasmus explains the problem and the app based scanning technology to create a 3D rendering of a customers face in a quick and simple way.
Starts with a joke about how well sharks can see underwater
Explains the problem of leaking and uncomfortable swimming googles: faces are different but current goggles are all the same
Traction with the worlds best swimmers and triathletes
Shocked the sharks with the market size: $2.2BN
Traction with 40k customers generating $3MM with 3x y-on-y growth
The lessons from the clear-sighted sharks.
Charmingly founders jokes in response to sharks question on US move
MC clarifies that it's a robotics company that makes googles
MC asks about how much they've raised: $1.5MM at $9MM valuation
MC highlights his expertise in AI, AR, machine learning, robotics, and sports and does not want to work with the others
NT and KL highlights competence in tech and sales, gradually reducing equity, and points out, giving equity is painful for current owners
LR offers to join a bid with another shark helping to generate sales
RH talks about his daughter who was a world class swimmer in Butterfly
RH significantly improves his offer and push for immediate answer
Final deal is $1MM for 6.5% from Robert Herjavec
Bo and Rasmus listened calmly, patiently and attentively to each bid clarifying changes as the investors updated their pitches. The footage makes clear that the shark was the winner and entrepreneurs benefitted from the competing bids.
TheMagic5 epilogue
The company is still going strong. According to one source the company made $45k in sales in the 24 hours after the show. Mark and Robert ended up both investing $500k for 3.25% each. The original product has 30 ratings on Amazon, average 2.2, very polarized reviews with praise for fit but complaints about foggyness but the newer version has an average rating of 4.0.
Incredible Eats: Season 13 Episode 4
Indian immigrant entrepreneur Dinesh Tadepalli pitches edible cutlery to protect the environment, boost retailer revenue with flavours to enhance the culinary experience.
Incredible Eats lessons
Dinesh theatrical presentation, enthusiasm, and pride for his accomplishment building his company while in full time employment convinces the sharks of his entrepreneurial chops but they pushback due to low traction and high plastic replacement cost.
Problem is longevity of plastic cutlery solved with tasty edible cutlery
Quickly offers sharks to taste the product and address questions during test
Highlights revenue upsell opportunity for its customers
Sharks are unimpressed with traction $170k from 2MM unit sales in 2 years
Founder enthusiasm elicits bids from 4 out of 5 investors
KL focuses on the 10x price differential to plastic alternatives
KL identify challenge to educate consumers that it can be eaten
BC feels his enthusiasm blinds him and dislikes forcing restaurants to also enter the spoon selling business
DL clarifies that he has failed to prove scalability but the valuation assumes it
MC agrees that upselling is an opportunity for every business
LR loves it for groceries and food services promoting its taste to sell it
Final deal is $500k for 15% from Lori Rainer
Dinesh tries to improve the offer with a counter of 12% but the offers valuation are too far apart. He accepts the highest offer from the most sales focused shark.
Incredible Eats epilogue
The deal fell through due to changed deal terms but the publicity from the show generated 150,000 pre-orders and he secured $200,000 seed financing in 2021. In 2022 he secured a partnership with Dippin' Dots ice cream. He has struggled to close deals with restaurant chains due to the high price differential and is still hoping to push international expansion and better manufacturing partnerships according to his website.
Tania Speaks Organic Skincare: Season 13 Episode 5
19-year old entrepreneur Tania Speaks pitches her line of organic skincare products to inspired by her desire to tame thick brows and grow thin brows.
Tania Speaks lessons
Tania's positive attitude and figher spirit are unmistakable. Her confidence and articulateness are demonstrated in her emotional story of how she turned her struggles with bullying into a business success.
Confronted bullying by turning her haters into her motivators by inventing an organic beauty product to address her problem with thick eyebrows
Shares personal story about cutting her eyebrows and experimenting with products to regrow them
Impressed sharks with $1MM with 70% margins, and $1.4MM YTD sales online by sharing her story and attending events
Massive margins with hero product $1.10 costs to make sold it for $29
Sharks concerned about lack of scientifically proven efficacy to protect against claims from trolls of misleading advertisement
KL, with little hair, feels he'd be a poor spokesperson for the brand
BC and DJ feel they can't add value, and don't think she needs it
LR cites lack of scientifically proven efficacy as reason to decline
MC went out initially but changes his mind after the others go as a champion of young entrepreneurs, the money for 20% if she meets his two daughters
Tania counters she'd be honored to do so at 15%
Final deal is $400k for 15% from Marc Cuban
Tania Speaks epilogue
Her business is still going strong and she praises the support of her mentor Mark Cuban. According to one site she now has a net worth of $2.6MM.
Doorbot: Season 5 Episode 9
Tech entrepreneur Jamie Siminoff pitches an electronic doorbell with two-way mic and video to increase home security.
Doorbot lessons
Jamie factual pitch demonstrates deep industry insight. His response to their questions is transparent. He is professional and courteous but he seems to alienate some sharks who don't share his vision or are displeased to be part of his pitch.
Starting pitch outside the room by nocking on the door is low energy and creates some initial confusion among the sharks
Highlighting dicotomy of no improvements to doorbell, since its invention in 1880, in contrast to technologies inside the home spaks some interest
Demonstrates product, in use, focusing on security benefits impresses
Uses humor presenting KL as a cardboard cutout proposing a royalty deal
Presents a scenario when person face dilemma of unknown rings late at night
MC mocks the idea of thieves ringing the doorbell but Jamie confirms it
MC is concerned about competition from complex solutions
MC doesn't think it can scale enough with his help
RH is impressed by $1MM sales in 9 months from direct online
RH is concerned about the security risk from it being hacked
LR concerned about risk of it being dismounted stolen
KL shows irritation about being joked about in the pitch
KL offers a 10% royalty deal with 5% equity which Jamie counters
KL stands his ground and Jamie declines
Jamie leaves the tank without a deal.
Doorbot epilogue
The most famous 'failed pitch' in the shows history. Jamie credits his exposure as a reason for later securing $28MM from Richard Branson and $109MM from Goldman Sachs. It rebranded to Ring and was bought by Amazon in 2018 for $839MM. It faced criticism by civil rights groups for building a private surveillance network and was discontinued in 2024 after paying a lawsuit filed by FTC for $5.8MM in 2023. Jamie has built a net worth of $400MM.
Surprise Ride: Season 5 Episode 9
Immigrant sister entrepreneurs Donna and Rosy Khalife pitches their subscription service for children with fun, interactive and enriching learning experiences.
Surprise Ride lessons
Donna and Rosy impress the sharks with the high product quality, personalized gift content, academic and professional pedigrees, and business knowledge. Donna shares an inspiring story of how they grew up without video games as Libanese war refugees, encouraged by their father, played with a craft store and chemistry lab in their living room which fuelled their creativity.
Start 1min 8s in.
Highligt parents need to encourage children to do fun hands-on activities instead of immersion in video games
Gift 'adult' versions for the Sharks that relates to their personal interests
KL ask about CAC: $5.30 and customer value: $130 (12-months)
KL thinks they're too early and will need too much money to scale
MC doubts the funding will support their 12-month growth plan
MC is dissapointed with answer that executional ability is their main strength when they rely on partners to market the business
LR praises the design and content of the surprise box
DJ questions the valuation due to its modest revenue $25k to date
RK compliments their packaging quality and knowledge but questions if being sisters qualifies them as effective business partners and their hustle
RK gives an offer for 25% but they fail to respond frustrating him
RK feels they are too theoretical and withdraw
After Robert withdraws Donna appeals to their shared immigrant background and the importance of getting feedback from all sharks before deciding inviting him to reconsider and participate with his proposal. He does not.
Donna and Rosy leave the tank without a deal.
Surprise Ride epilogue
Their apperance boosted their sales with thousands of parents signing up for their subscription service reading $500k end of 2014 and $1MM end of 2015. Kevin O'Leary returned to the negotiation table now that the sisters had demonstrated the could deliver. He offered $50k in exchange for 2.5% equity and 6% royalty until he recoups 150k in a take it or leave it offer which they accepted. The investment, with his support, paid off and the business reached $3MM sales 2 years later. It was acquired by an independent toy company in 2018 for an undisclosed sum.
Conclusion
Pitching for investment is hard. By studying entrepreneurial pitches we can identify key elements and shows like Shark Tank make good case studies. Each pitch, whether it resulted in a deal or not, provides a learning opportunity. Still entrepreneurs know there are no substitutes for personal experience.
Great pitches are well-prepared, clearly identify problems, and offer effective solutions, as demonstrated by examples like Breathometer, TheMagic5, and Doorbot. However, that’s not enough. The most compelling pitches also convey the personal motivations and journeys of the entrepreneurs, as seen in the inspiring stories of Incredible Eats, Tania Speaks Organic Skincare, and Surprise Ride. The best pitches have great ideas, by inspiring founders, who demonstrate ability to execute
I hope by learning from these real-world examples you can improve your chances to build a great businesses by securing the investments you need with the right investors and turn your vision into reality.
Comments