Shark Tank Tips

9. What makes an investor put their money into a deal?

Barbara Corcoran: My most important criteria when making the decision to invest are: 1) Do I trust the individual? and 2) Do they have the fire in their belly to bring the business to the finish line?

Daymond John: Trusting and believing in the CEO, knowing that the business can grow and distribute large profits, and knowing you have a patent that can be defended as well as licensed out to a larger company.

Kevin Harrington: First of all, an investor likes high return and accelerated payback. Generally, there is going to be more risk in what you are offering to an investor, so you must offer the him or her a higher rate of return either through the existing deal or continuing involvement, for example, the first right of refusal on new projects and new opportunities.

Robert Herjavec: A great probability of a healthy return on the capital – and the likelihood of capital being returned (element of risk ).