Shark Tank Season 4 Episode 4

[O Marina]

Watch Dragon's Den from Canada. He isn't always "Mr. Wonderful" on that show.

I love watching that show!

Kevin just don't care.

 

[Fiver]

What I never understood is: How do they figure out the valuation of the company?

 

[AMagz]

What I never understood is: How do they figure out the valuation of the company?

Investment amount divided by percent of ownership.

Ex: Say they wanted $500,000 for 12% of the company.

$500,000 / 12% = $4,166,666 valuation.

 

[SkyFire]

What I never understood is: How do they figure out the valuation of the company?

When one of them says "So by asking for $100,000 for 10% of your company you are valuing it at $1,000,000?" you didn't figure that shit out?