It pays to pitch on Shark Tank – most startups raise external funding at avg 6x the value

• As many as 27 startups that appeared on the show secured funds from external investors, says Redseer Consulting.
• Startups on the show cumulatively raised ₹100 crore on Shark Tank across seasons 1 and 2.
• The biggest shark amongst all is Aman Gupta, the founder of BoAt who invested ₹24.6 crore across 70 deals.
  

Shark Tank judges are indeed sharks who have bargained the best deals — putting in a lot less than what was asked — and making the startup founders dilute a lot more than they intended to. True to their nature, they also picked a lot of winners who were able to gain business, funding along with publicity from screen time – that has helped many D2C brands in particular.

Redseer Consulting, in a recently released report, has found that 27 startups that appeared on season 1 of the show secured funds from external investors.

”Most startups that appeared on the show secured deals 6 times greater in value from outside investors within a span of 1.5 years. Their current valuation is also 2.5 times greater than what they were valued on Shark Tank season 1,” said Kanishka Mohan, partner at Redseer Consulting.

In season 1, as many as 117 pitches were made, out of which 65 of them accepted deals on the show, 20 rejected deals and 32 were not offered a deal at all. All these sections of startups, received a fair amount of interest from external investors.

Six startups which were not offered a deal on the show like — On2Cook, Theka Coffee, Good Piggy Bank, Sabjikothi and Nushka were able to secure deals outside.

“In all, most startups that appeared on the show fared well afterward, securing better deals and increasing valuations,” the consulting firm said.

Who’s the biggest shark?

As much as ₹100 crore was invested in startups that pitched their ideas on Shark Tank season 1 and 2 by eight sharks. And the shark with the most appetite is Aman Gupta, the founder of BoAt who invested ₹24.6 crore across 70 deals.

He is followed closely by Peyush Bansal, the co-founder and CEO of Lenskart who invested ₹21.5 crore across 67 deals.

The most active shark of season 1 who missed the second season is Ashneer Grover, the co-founder of BharatPe, who invested ₹5.3 crore in 21 deals.

Shaadi.com founder Anupam Mittal who was recognized as one of India’s best angel investors, as per Hurun, had invested ₹14.4 crore across 50 deals on the show.

Sharks loved to invest in startups pertaining to the food and beverage sector . Amongst the few deals made in healthcare and manufacturing, most of them came from Thapar and Bansal who have expertise in these sectors.

“Most of the deals made on the show had one shark onboard; however, it never happened that all the sharks invested in a single business,” Redseer said.

Source: Redseer Consulting