Shark Tank Cast Members
Highlights
- Shark Tank has kept updating itself with the growing trends and interests of its audiences.
- The difference in investment sought for Daisy Cakes and Project Pollo is massive.
- There has been a huge rise in the number of pitches brought to the show in recent times.
The journey of a reality show from being ‘good’ to ‘great’ is filled with constant changes as per the existing trends and tastes of its viewers. Since its inaugural episode, Shark Tank has also been following the same path. The successful run for fifteen years would otherwise not have been achievable.
On the surface, Shark Tank may appear as a show suitable for a niche group of business-oriented people. But its high ratings per season, coupled with its popularity on social media, indicate a completely different story. The show has made timely changes to captivate audiences hailing from diverse interest groups.
Below given is how Shark Tank has evolved over the seasons:
1. Investment Amounts Have Increased
If you take a ride back to the initial seasons of Shark Tank, there is a common pattern that was adopted by pitchers with regard to the investment amount and equity. The investment asked generally used to be below $100K, and the equity offered was mostly more than 20%. Here are some examples:
In the fifth season, Daisy Cakes founder Kim Nelson approached the judges seeking $50K for 25% equity. In the third season, Steve Gadlin sought a mere $10K for 25% equity in I Want To Draw A Cat For You.
However, a lot has changed over the seasons. Entrepreneurs have often asked for huge, sometimes outrageous valuations. The best examples are Project Pollo and Larq.
Lucas Bradbury, founder of Project Pollo, made his way to the investors, asking for a huge $2.5 million for 5% equity. Similarly, Justin Wang asked for $500K at 1% equity in his business Larq.
These huge valuations demonstrate that entrepreneurs have become highly ambitious over the years. If they believe their business is worth the valuation, they do not shy away from asking for it, which was not common in the first few seasons of Shark Tank.
2. Business Ideas Have Grown
When the first season of Shark Tank aired, the times were much different. Although the technology was in existence, not many were as skilled with it as they are now. Similarly, the concept of eco-friendly products was also in its infant stages. But now, these are hot topics of discussion.
The same has been reflected in the different pitches showcased on Shark Tank. In its first few seasons, the products and business ideas were simple. For example, Daisy Cakes’ concept was based on the simple idea of homemade cakes, but it still bagged a deal from Barbara Corcoran.
However, things changed in the coming years, and pitchers approached the panelists with the most creative business ideas. An example of this is Aira, which Eric Goodchild and Jake Slatnick brought in the eleventh season.
The entrepreneurs revealed that their offering allowed one to charge up their devices without the use of any cable. All the Sharks were impressed with the idea and the deal was finalized by Lori Greiner for $300K at 15% equity. Kevin O’Leary and Robert Herjavec also joined her in it.
3. Audiences Have Become Informed
In an interview with USA Today about the evolution of Shark Tank, Daymond John stated that the viewers are now far more informed. About ten years ago, not many were versed in jargon like margins, royalties, and lion’s share. But now they are quite aware of each of these terms.
A prime reason for this is the Sharks’ consistent use of the terms. Kevin O’Leary is most famous for proposing royalty deals, through which he can get back his invested amount by a specified period. An example of this is his deal with the creators of ‘Wicked Good Cupcakes’.
He finalized the deal with Tracey Noonan and Danielle Desroches at $75K for $1 royalty per cupcake until he recouped the invested amount. Once he got it back, the royalty would get down to 45 cents in perpetuity. The entrepreneurs agreed to the offer.
Pitches like these make the audiences more and more aware of the terms.
4. The Number Of Pitches Has Risen
The number of pitches presented on Shark Tank has been steeply rising with every passing season. The first two seasons aired only 14 episodes in total. This number increased rapidly from the fifth season, with about 29 episodes making it to television screens by 2013.
If you try to find out the reasons behind it, there are multiple factors contributing to it. When the show hit our screens for the first time, no one (including pitchers and audiences) had a solid understanding of it. Entrepreneurs lacked the confidence and guidance that were essential to leave a mark on the judges.
On the other hand, not all entrepreneurs were aware of how the pitches and negotiations worked. However, once both the entrepreneurs and viewers understood the basics, the show resulted in a dramatic increase in their inclination towards the world of entrepreneurship.
Many aspiring entrepreneurs gained the confidence to create their own products. Additionally, the pitchers’ wins and failures on the show set the guidelines for their ideal pitches.
Conclusion
Shark Tank has been successful in maintaining its dominant run in the reality television space due to its ability to adapt through seasons. With every new year, the show has reflected changes in terms of investment values, viewers’ knowledge, and the nitty-gritty of entrepreneurship.
This is why the show is still soaring and is set to return with a brand-new season this month.
References
- ‘Shark Tank’ secrets: Life-changing moments on an assembly line of product pitches, USA Today, Bill Keveney
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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