Since it debuted in 2009, Shark Tank has become one of the most popular business reality shows on television. Each episode sees entrepreneurs pitch their products to a panel of investors and business moguls, known as the sharks, in hopes of securing an investment. The show’s high-stakes pitches and rigorous evaluations offer both entertainment and a unique glimpse into the world of startup businesses.

Legacy Shave: Revolutionizing the Shaving Industry on Shark Tank

During a typical episode, the sharks question entrepreneurs on their business models and scalability before making an offer. Then, the entrepreneurs can negotiate a deal with the shark they believe offers the best chance of success. This negotiation process can include negotiating share or stake percentages, offering loans instead of equity, and even asking for royalties.

After a deal is made, the sharks conduct thorough due diligence to make sure the terms are fair for both parties. They also take into account any other risks or challenges the entrepreneur might face, such as manufacturing, sales, or marketing.

The sharks may be able to offer advice or guidance as well, depending on their expertise. For example, Lori Greiner has more than 120 patents to her name and is a savvy businesswoman with a knack for assessing whether or not a product will be a hit. Her ability to help startups grow has led to deals with the Squatty Potty, The Bouqs, Scrub Daddy, and more. For entrepreneurs who don’t secure a deal on the show, appearing on Shark Tank can generate significant interest from potential customers and investors.