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Shark Tank is just free PR for investors

2 pointsshoman30031 comment
On HN

Lori Greiner celebrated doing 1 billion in lifetime sales after 15 years On Air on her entire portfolio!!

Let's assume an average %60 margins ~ $600 million gross profit & %20 net profits (rare for tank deals) ~ $200 million is profits max

%10 is the average deal on the show ~ $20 million in dividends capital gain on a unicorn exit (unlikely) ~ $100 million She invested ~2m max per season (x15) ~ ($30) million invested by Lori _____________________ Total ROI = 120/30 = X4 at best!!!!

Not X4 annually, but in the entire 15 years since the show started! That is less than %10 annual ROI ((120/30)^(1/15) − 1)! Mediocre returns, same as most stocks.

Even with 2 billion dollar exits (which only happened twice in 15 years, none of which were in Lori's portfolio). The ROI is still at %14.1 ((220/30)^(1/15) − 1)! Not that much better than real estate.

That whole show is PR for the investors, nothing more.

Comments

Some contestants propose ridiculous deals to get free PR as well.

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