Shark Tank is full of brash and sometimes even inspired business ideas in which the 5 ‘Sharks’ invest their own money.
In a best case scenario everybody goes on to make money and viewers have been witness to television’s most entertaining business investment.
Yet what works for producers doesn’t always for Sharks.
“We know nothing about the pitches, so we’re really relying on what they tell us. Once the show’s over, the actual due diligence starts. The challenge is, once you dive into the businesses, you learn stuff you may not have known before. But it also goes the other way,” businessman Robert Herjevec tells TV Tonight.
“You’ve got to keep in mind that there’s a reason producers are on TV and not running multi-billion dollar companies. They’re not business people.
“There are things that we ask and find out that are really difficult to find out ahead of time. We’ve had people come out to us on the show and say, ‘Hey, we checked this business out before. You guys aren’t going to love this, but it’s a great person, and we just want to see how it goes.’
“On the converse side, they’ve come out and said, ‘Oh, this is a fantastic, one of the best pitches we’ve seen,’ and they’ll come out, and we’re like, ‘Oh my gosh, this is horrible. I would never invest in this.’
“Then we’ve seen stuff that the producers thought was never going to work, and we do a deal. So there’s a difference between looking at it through a business lens and a TV lens.”
Even if a project subsequently fails the due diligence stage, it can still featured in the show.
“Well, that’s a dichotomy, because the Sharks are using our own money and trying to do great investments, and the producers are trying to make great TV. Sometimes we don’t really know how it’s going to go, right? Sometimes you have a crazy pitch with no substance, but it’s great TV. But not a great investment. So you get to see a little bit of everything.”
Returning to the 10 series are Davie Fogarty, Jane Lu, joined by Queensland telco giant turned health and beauty entrepreneur, Maxine Horne, plus smart tech guru and new age explorer Nick Bell.
Herjevec, married to Aussie dancer Kym Johnson, now spends much of his time in Australia where their twins are attending school, and is in the process of applying for residency. He has featured in 5 seasons of Canada’s Dragon’s Den and is in his 17th year of the US Shark Tank. 2024 marks his second season on the Australian edition.
“I find that Australians are incredibly self-deprecating, confident and humble, whereas I think Americans just have a little more of an edge to them, not necessarily good or bad, just different,” he continues.
“Another thing that I was really pleasantly surprised in Australia is the innovation. I don’t know whether it’s because we’re so far away from everybody. To build a big business, you’ve got to have a really great idea,and you’ve got to conquer the local market and then go global. But the innovation has been incredible.After 21 years, you would think I’ve seen it all, but some of the pitches this year are fabulous. There were a couple that I just said ‘Wow. I wish I would have thought of that!’”
If investing in the person is essential, as much as the product or idea, the Sharks are always eager for entrepeneurs to pitch well.
“In business (people think) you’ve got to be crusty and mean and all of that. But I think it’s actually the opposite. You want people to succeed. Everybody who walks out in Shark Tank I want them to have an amazing idea. I want to be able to help them change their lives, because that’s the basis of our show. One idea can change your life forever. So I want them to be great.
“Now, are they always great? No, but we certainly give them a chance, and we encourage them. Even if you don’t get a deal on the show, just the exposure on the platform helps people a lot.”
But even a good idea can fall apart in the Tank. Last week the creator of modular reflex punching bags impressed with the product, but not with the business deal.
“I always say, a great entrepreneur can make an okay idea great, but a bad entrepreneur can take a good product and run it into the ground. I think he was just overwhelmed. I mean, you got to keep in mind, getting in front of us, you’re auditioning. But what people don’t realise is the show is very real. There’s no script. We don’t know anything about the people before they come out. Since it’s really our own money, we’re asking very pointed and direct questions, because we want to get to know them. Not everybody can always take the heat in the Shark Tank,” says Herjevec.
“What we’ve learned from doing the American format is it takes time to know if you have a real winner. Business is a marathon, not a sprint. In the States, it can take three to four years to see if you’re starting to get traction and engagement. But we’re doing good.
“The other exciting thing is, this year we’ve seen some incredible stuff that already has a lot of traction. As an investor, we just want to make it go faster.”
Shark Tank screens 7:30pm Wednesdays on 10.
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