Shark Tank Valuation Calculator

Shark Tank made business valuation famous. Calculate valuations using the show’s methodology.

How the Shark Tank Valuation Calculator works

Apply Shark Tank math: calculate implied valuations, evaluate offers, and understand negotiation dynamics for pitches.

Shark Tank simplifies complex valuation. This calculator teaches the math behind the deals.

How it works

Tutorial

Shark Tank made business valuation accessible to millions, but the quick mental math the Sharks perform involves important concepts entrepreneurs must understand. When an entrepreneur asks for $100,000 for 10% of their company, they’re implying a $1 million valuation. Understanding how to calculate, justify, and negotiate these valuations is critical for any fundraising situation.

You have two options: use the calculator above to analyze Shark Tank-style offers instantly, or follow this guide to master the valuation math yourself.

The Formula

Component	Formula
Implied Valuation	Investment Amount ÷ Equity Percentage
Post-Money Valuation	Same as Implied Valuation
Pre-Money Valuation	Post-Money – Investment Amount
New Equity Percentage	Investment ÷ Post-Money Valuation

Step-by-Step Calculation

Let’s work through a typical Shark Tank pitch scenario.

Step 1: Calculate Implied Valuation from Ask

An entrepreneur asks for $200,000 for 15% equity:

Component	Value
Investment Requested	$200,000
Equity Offered	15%
Divide investment by equity	$200,000 ÷ 0.15
Implied Valuation	$1,333,333

Calculation: $200,000 ÷ 0.15 = $1,333,333

Step 2: Evaluate a Shark Counter-Offer

A Shark offers $200,000 for 30% equity:

Component	Value
Investment Amount	$200,000
Equity Requested	30%
Divide investment by equity	$200,000 ÷ 0.30
Counter-Offer Valuation	$666,667

Calculation: $200,000 ÷ 0.30 = $666,667

Step 3: Calculate Valuation Difference

Determine how far apart the valuations are:

Valuation	Amount
Entrepreneur’s Valuation	$1,333,333
Shark’s Valuation	$666,667
Difference	$666,666
Shark Values at	50% of Ask

Calculation: $1,333,333 – $666,667 = $666,666 (Shark values company at 50% of entrepreneur’s valuation)

Step 4: Find Middle Ground

Calculate a compromise valuation:

Scenario	Investment	Equity	Valuation
Original Ask	$200,000	15%	$1,333,333
Shark Offer	$200,000	30%	$666,667
Middle Ground	$200,000	20%	$1,000,000

Calculation: $200,000 ÷ 0.20 = $1,000,000

Step 5: Calculate Post-Money Ownership

Determine final ownership structure if deal closes at middle ground:

Party	Ownership Calculation	Percentage
Entrepreneur	100% – 20%	80%
Shark	Investment ÷ Valuation	20%
Total		100%

Step 6: Calculate Dollar Value of Stakes

Show the actual dollar value at the agreed valuation:

Party	Calculation	Value
Entrepreneur’s 80%	$1,000,000 × 0.80	$800,000
Shark’s 20%	$1,000,000 × 0.20	$200,000

Final Answer: At the compromise valuation of $1,000,000, the entrepreneur gives up 20% equity worth $200,000 for the investment

What This Means

Valuation negotiation is about finding a number both parties believe the company is worth. The entrepreneur valued the company at $1.33M, the Shark at $667K, and they could meet at $1M. This represents a 25% discount from the entrepreneur’s ask but 50% premium to the Shark’s initial offer—a reasonable compromise.

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