Most startups that appeared on the show during season 1 secured deals 6X greater in value from outside investors within a span of 1.5 years.
Key Takeaways
● A total of 27 startups successfully secured funds from external investors with current valuation of 2.5X that of Shark Tank season 1 valuation
● A total of INR 1.06 Bn were invested in the deals on the show including season 1 & 2
● 90% of the pitched ideas centered around customer-facing concepts
Crunching numbers from season 1 of the massively successful business reality series Shark Tank India, Redseer shares how the screen time catapulted businesses forward in valuation. ”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 2.5X greater than what they were valued on Shark Tank season 1” commented Kanishka Mohan, partner at Redseer.
Following up on companies that either secured a deal or were rejected on Shark Tank season 1, the Redseer strategy consultants found that 27 startups successfully secured funds from external investors regardless of whether they scored a deal, dropped out, or got rejected on the show. In all, most startups that appeared on the show fared well afterward, securing better deals and increasing valuations.
Dissecting the businesses that appeared on Shark Tank, 90% of the pitched ideas were centered on consumer-facing concepts, while the rest were B2B. Commenting on the high rate of conversion on the B2B deals on the show, Kanishka Mohan added, “Out of the 19 deals, 10 came from the healthcare and manufacturing sectors. Majority of B2B deals were made by Namita & Peyush, having expertise in healthcare & manufacturing sectors respectively”.
On the investor’s side, the sharks negotiated hard and got much better deals with equity significantly higher than what was pitched on the show on every deal. Aman Gupta was the most active shark securing 70 deals with a total investment of INR 246 Mn. Closely behind Aman were Peyush Bansal and Namita Thapar securing 67 and 62 deals, with total investments of INR 215.5 Mn and INR 206.6 Mn, respectively. Six out of a total of eight sharks who appeared on the show preferred businesses in the Food & Beverages industry, while the remaining preferred to invest in healthcare.
Delving deeper, the investments in both seasons totaled INR ~1.06 Bn, with the F&B sectors receiving the biggest share of the pie. 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.
Offering further insights on the entrepreneurs and startups, Redseer says that most pitchers hailed from metro cities and have studied in the top IITs and Premier B schools. The majority of the businesses were headquartered in metros, with the rest situated in Tier 1 and Tier 2, or smaller cities. Redseer also notes that most of the pitched startups have been in business for more than 2 years.