Lori Greiner's Fund Structure

Julia Cheek shares insights about Lori Greiner's investment approach on Shark Tank and the behind-the-scenes reality of the show's deals.

• Deal Structure and Process:

  • Initial deal was a line of credit at 8% interest rate for 5% of company
  • Company valuation was $20 million post-money
  • Final deal terms were different and "better for both parties" (though specifics undisclosed)

• Shark Tank Deal Reality:

  • Over half of deals shown on TV never come to fruition
  • Another quarter change terms
  • Only about a quarter get done at original terms
  • Show conducts due diligence before pitches through venture analysts

• Lori Greiner's Investment Approach:

  • Invests through a fund structure but uses her own capital
  • Has relationships with top 3-4 Shark Tank companies (doing quarter billion in sales)
  • Known for successful investments in companies like Squatty Potty and Scrub Daddy
  • Conducts detailed due diligence through her management company
  • Each deal is negotiated differently, similar to VC deals

• Show Production Reality:

  • Hour-long pitches get edited down to 7 minutes
  • Some pitches can last 2-3 hours
  • Contestants can take time to think, call friends, or exit to discuss
  • Much more discussion happens than what appears on TV