'Shark Tank' Germany: Analysis Reveals Deal Collapse Rate
An analysis of the German startup show 'Die Höhle der Löwen' (Shark Tank) shows that while many deals are struck on air, a significant portion, nearly 40 percent, collapse post-show. However, the success rate has improved over seasons.
Many investment deals struck on the German startup show 'Die Höhle der Löwen' (The Lion's Den) fail to materialize after the cameras stop rolling, according to a recent analysis.
Across the five seasons aired so far on VOX, a total of €31.83 million was promised to successful pitching companies. However, only €18.65 million actually transferred to 94 firms, meaning approximately 40 percent of the promised investments, totaling 60 deals, did not go through.
This leaves an overall investment success rate of around 58.6 percent for the companies that secured a deal on air. The analysis from "Chuck No Risk" found that out of 321 companies that pitched, the chance of a successful investment was about one in four. The high collapse rate is attributed to the rapid decision-making required in the show, with detailed negotiations and due diligence occurring only after the initial agreement.
Despite the post-show collapses, the trend shows improvement. In the first season, only 23.5 percent of deals materialized. By the fifth season, this figure rose to 82.3 percent. Investor Judith Williams has previously noted that both the show's preparation and the entrepreneurs' readiness have increased over time.
Even without a deal, appearing on the show provides significant exposure to a million-strong audience. Of the 173 companies that left without an investment, 141 remain in business, a failure rate of 17.3 percent, which is favorable compared to the general German startup failure rate of 32 percent within three years.