I have to disagree with this. I've watched every episode of Shark Tank, and many of the businesses are in highly competitive markets and do not have any fundame

I have to disagree with this. I've watched every episode of Shark Tank, and many of the businesses are in highly competitive markets and do not have any fundamental competitive advantage. 10 times profit is actually a really good valuation. Investing at a 10 times profit in a small company is a highly risky investment. You are gambling that the company will be: a) ethical b) continue to operate for enough years to pay you back c) If they stay the same then after tax it will take 15 years to pay back the investor assuming that all the profit goes to paying back the investor which is highly unlikely. Potential growth is the upside that you are looking for but it's certainly not at all guaranteed, and the opposite is also possible (negative 100% growth, or company being worth nothing).