Comment by gavman | Hacker News Reader

Comment by gavman | Hacker News Reader

From everything I've read, the handshake deal on the show is meaningless. After the show the investors do real due diligence, and not every deal works out.

"First of all, the handshake deal that happens on the show isn't anything binding. Filming for each season is split over the start of the summer and the start of the fall. After each round, the Sharks and their teams do due diligence on each of the companies to ensure that everything within the company is how it was represented in the pitch room.

There are times when the numbers check out, but the entrepreneurs decide they no longer want to make a deal, such as when the founders of evREwares decided they weren't actually willing to sell 100% of their struggling company to Cuban for $200,000 as they agreed to in season six.

Ultimately, said Cuban's fellow Shark Daymond John, about 80% of season seven's deals made on camera closed, which is up from about 60% to 70% of past seasons."

http://www.businessinsider.com/what-happens-after-closing-sh...

Edit: formatting

I don't think this is going to end well for anyone.

This article by Pando Daily on StartEngine's 2012 demo day lists "Style Club" and not "Style Me Stylish" as she claims the company was called then. [0] From the description there it does seem like it may have pivoted once they got an offer to work with Urban Outfitters but it is hard to tell?

This article has quotes by Mark Cuban which seem like they may have finalized something.[1] Impossible to tell though. Maybe they are just talking about due diligence type things.

Interesting quotes from the article: -She started mapping out the company in Los Angeles in 2013 and was fully operational by 2015.

  -“My job is to support Hilary and give her guidance where she needs it. It’s her baby,” Mr. Cuban said in an email interview. “I love supporting Pittsburgh entrepreneurs.”

  -Since the deal, they talk each week and are focused on developing a watching/shopping app to grow direct-to-consumer business.

[0] https://pando.com/2012/09/21/startengines-summer-2012-demo-d...

[1] http://www.post-gazette.com/life/fashion/2016/11/13/Styleboo...

I would love to know the returns they see from these deals. It must be profitable.

I assume that, even if the deals are not particularly profitable, being paid to be a judge on a show like Shark Tank is profitable in itself.

I'm sure being seen as a judge on Shark Tank is profitable too. I can't imagine he hasn't received deal offers because of his involvement in the show.

The majority are probably worthless, but there's a non-zero chance he gets a buy-in on a new venture whose founder isn't savvy to chase normal money but did contact "that famous guy from Shark Tank."

> He said: "Out of the 71, I would say ten or 11 are netting a minimum of half-a-million dollars a year, doing $8 million to $15 or in some cases, $20+ million revenue. I would say about 30% of my companies have returned all of my investment and then some."

Source: http://www.inc.com/chris-matyszczyk/this-is-how-many-of-mark...

Also in the same story

> "Of the 71 startups that I've invested in through Shark Tank, two have gone out of business, three are so stupid they don't know they're out of business."

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