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Why Does Shark Tank Lie About Valuation? (2016)
- quickthrower2 9y agoNot being from an investment background, but a maths background. I did feel a bit stupid watching Shark Tank thinking I was missing something about how they valued the companies. Then after a bit of Googling, I found that indeed they value them incorrectly. Most likely so as not to confuse viewers. If the investment required is 100k for 10%, the shark would say "you value your company at $1m". Not true though. That's the value of the company after the invested $100k becomes an asset of the company. Ergo, before the investment, the company is valued at $900k.