Mark Cuban makes Shark Tank remove equity clause in contract

Re:Mark Cuban makes Shark Tank remove equity clause in contract by avalaunch on Thursday October 03, 2013 @04:04AM (#6487698)

True but this isn't exactly a normal meeting. It's 10-15 minutes of television coverage in front of ~6 million potential customers. Estimates have put the value of that advertising at about 600k. 5% of one's company is actually a pretty good deal for a lot of small B2C businesses when you look at it that way. If you already have a product being sold and it would do well on a show like QVC then the deal was pretty good. If, on the other hand, your company is B2B, or too big, or the product isn't being sold yet, than it's a lot more questionable.

I'm glad they made the change. We'll probably start seeing a more diverse range of companies appear on the show.

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Re:Mark Cuban makes Shark Tank remove equity clause in contract by kronholm on Thursday October 03, 2013 @09:52AM (#6488854)

Just to add to your post, I don't remember ever seeing anyone getting a deal at 5%. It's usually more around the 20-30% range, and sometimes with equity stakes on top of that.

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Re:Mark Cuban makes Shark Tank remove equity clause in contract by jaredsohn on Thursday October 03, 2013 @12:14PM (#6489959)

The GP is referring to the equity given up just for being on the show (not the equity given up if a deal is made.)

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