Equity

Equity deals are, far and away, the most popular deal type made on Shark Tank. This is because they are the type of deal most easily understood. Equity deals are, for all intents and purposes, the same as buying stock on the stock market. Based on the value of a company, an investor buys shares.

The difference in Shark Tank, however, is that the size of the companies are much smaller, their value much less, and the amount of "stock" purchased when a deal made is much larger. Instead of buying 100 or 1000 shares, the sharks purchase whole percentages of companies.

Companies come into the tank with a company valuation. It is how Sand Cloud can come into the tank and ask for $200,000 for 8% of the company. The value they placed on themselves was $2,500,000. However, because the equity on offer in the Tank is for private companies and not on the open market, the sharks can negotiate. In Sand Cloud's case, Robert was able to take 15%, lowering their value to $1,333,333.

We call this the Shark Tank Bite.

Below are all of the deals that have been made for straight equity.