After a rather interesting entry into the den, this mad scientist showed off his very promising business. ~~~~~~~
Budding entrepreneurs get three minutes to pitch their business ideas to five multimillionaires who are willing to invest their own cash to kick-start the businesses in the original "Shark Tank." After each pitch, the Dragons have the opportunity to ask questions about the venture. The entrepreneurs don't always have to answer, but of course what they choose not to address could very well affect the outcome. The pitch is over when each of the Dragons has declared,"I'm out."
Contestants have what they believe to be a viable and potentially profitable business idea but lack funding, or are already operating their business but need additional funds for promotion or expansion. As part of their opening pitch, they are required to specify the amount of money they require from the Dragons. The rules stipulate that if they do not raise at least this amount from one or more Dragons, then they would leave with nothing. In exchange for the investment, the contestants offer equity in their business, the percentage of which is also stipulated at the beginning of the pitch. If the Dragons see potential in the business idea or product, negotiations then take place around the amount of equity on offer, with the contestant having the opportunity to negotiate further, accept any offers, or simply walk away. Dragons can also offer a percentage of the money requested if they do not wish to commit the full amount, leaving the other Dragons free to do the same. This can lead to the contestant receiving the financial backing of more than one Dragon, with the benefit of a broader range of expertise. However, for this to occur, the contestant usually has to agree to relinquish a larger share in their business than they had first planned.
A Dragon who, having heard the pitch, does not wish to invest, must declare themselves "out", implying that they leave the discussion. (However, on one occasion in series 4, Peter Jones continued to question an entrepreneur after his own declaration.) This concluding phase may range from a few minutes if the Dragons don't perceive the business plan as credible, to much longer when complex conditions are negotiated. The Dragons often ridicule contestants, on grounds that vary widely, but especially for over-valuation of their respective enterprises.
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