The 10 Secrets to the Perfect Shark Tank Pitch

Science of People

26 Sept 201607:06

Summary

TLDRVanessa van Edwards from the Science of People research lab conducted an experiment analyzing 495 pitches from 'Shark Tank' to uncover patterns in successful pitches. Key findings include the importance of smiling and nodding during the grand entrance, making the pitch interactive, telling a compelling story, and demonstrating vocal power. The most critical aspect was ensuring mathematical accuracy in the pitch, as any math errors were a significant deal-breaker. These insights can help entrepreneurs refine their pitching strategies.

Takeaways

😀 Smile and Nod: Entrepreneurs who smiled and nodded during their grand entrance were more likely to get a 'yes'.
🤝 Be Interactive: Pitches with interactive elements, such as product demonstrations or engaging the sharks, had higher success rates.
📖 Story Time: Successful pitches often included a compelling narrative about the entrepreneur's journey and the business.
🗣️ Vocal Power: The use of vocal variety and strength in the pitch was linked to a higher chance of securing a deal.
💡 Deal Breaker: Mathematical accuracy was crucial; incorrect financial calculations or overvaluations were major deal breakers.
😢 Crying in the Tank: The script hints at further research on how emotional displays, like crying, affect an entrepreneur's chances.
😄 Most Laughs: The number of laughs a pitch received was also examined, suggesting humor can play a role in pitch success.
👍 Sharks and Women Entrepreneurs: The study looked into which sharks were more likely to invest in women-led businesses.
🔍 Detailed Analysis: The research analyzed various aspects of the pitches, including facial expressions, body language, and product integration.
📈 Product Categories: The success of pitches may also correlate with the category of the product or service being pitched.

Q & A

What was the main objective of the research experiment on Shark Tank?
-The main objective was to understand why certain entrepreneurs are successful and others aren't by analyzing every pitch that has ever been on Shark Tank.
How many pitches did Vanessa van Edwards and her team analyze for their research?
-They analyzed 495 pitches from Shark Tank.
What was the split between pitches that received a 'yes' and those that received a 'no' in the study?
-There were 253 deals that got a 'yes' and 242 that got a 'no', making it almost an even split.
What was one of the key findings regarding the entrepreneurs' grand entrance in the Shark Tank?
-Entrepreneurs who smiled and nodded once they saw the Sharks had a much bigger chance of getting a 'yes'.
How much more likely were entrepreneurs who both smiled and nodded to get a deal compared to those who didn't?
-Entrepreneurs who both smiled and nodded were 9% more likely to get a deal.
What is the significance of being interactive during a pitch according to the research?
-Entrepreneurs who had some kind of interaction in their pitch did far better than those who didn't, with 81% of successful deals having some form of interaction.
Why are stories important in a pitch according to the video?
-Research has found that our brains love stories, and 58% of 'yes' deals had a story told within them.
What is 'vocal power' and why is it essential for a successful pitch?
-Vocal power includes variability and strength in one's voice, which makes the pitch more engaging and attention-grabbing.
What was the most important thing an entrepreneur could do while pitching, as per the research?
-Ensuring their math was perfect was the most important thing; any math problem was a total deal breaker.
What percentage of 'no' deals had some kind of math problem compared to 'yes' deals?
-64% of 'no' deals had some kind of math problem, while only 32% of 'yes' deals had one.
What additional findings did the research explore beyond the initial six points mentioned in the video?
-The research also examined which deals got the most laughs, how crying affects chances in the tank, and which sharks invest in the most women entrepreneurs.

Outlines

00:00

😀 Secrets of a Successful Shark Tank Pitch

Vanessa van Edwards, the lead investigator at the Science of People, shares insights from a research experiment analyzing 495 pitches on Shark Tank. The study aimed to uncover patterns that differentiate successful pitches from unsuccessful ones. Key findings include the importance of smiling and nodding during the grand entrance, which significantly increases the chances of getting a 'yes'. The research also emphasizes the value of interactive pitches, storytelling, vocal power, and the critical need for accurate math in pitches. These elements are crucial for entrepreneurs seeking investment on the show.

05:02

📊 The Power of Vocal Charisma and Math in Pitches

This paragraph delves into the importance of vocal charisma and mathematical accuracy in Shark Tank pitches. Entrepreneurs with powerful and variable voices are more likely to secure deals, as they capture and maintain the audience's attention. Additionally, the paragraph highlights the significance of presenting accurate financial information. Incorrect math or overvaluation can be a deal-breaker, with 64% of unsuccessful pitches having math issues compared to only 32% of successful ones. The summary also hints at further research findings, such as the impact of humor and gender on the investment outcomes, inviting viewers to explore more on the Science of People's website.

Mindmap

Keywords

💡Shark Tank

Shark Tank is a reality television series where entrepreneurs make business presentations to a panel of investors, or 'sharks,' who decide whether to invest. In the context of the video, it serves as the primary subject of study for the research experiment conducted by Vanessa van Edwards and her team. The video discusses various factors that contribute to the success or failure of pitches on the show.

💡Entrepreneurs

Entrepreneurs are individuals who create and manage new businesses, taking on financial risks in the hope of profit. The video script focuses on the performance of these entrepreneurs when they pitch their ideas on Shark Tank, analyzing what makes their pitches successful or not.

💡Pitch

A pitch in the context of the video refers to the presentation made by entrepreneurs to the panel of investors on Shark Tank. It is a crucial moment where they try to convince the investors of the viability and potential of their business ideas. The video explores the elements that make a pitch successful.

💡Successful Deal

A successful deal in the video refers to an agreement reached between an entrepreneur and one or more of the sharks on Shark Tank. The research experiment analyzed what factors contributed to a pitch resulting in a 'yes' from the investors, such as body language, storytelling, and vocal power.

💡Facial Expressions

Facial expressions are a form of non-verbal communication that can convey emotions and attitudes. In the video, the research team coded pitches for facial expressions to determine if they played a role in the success of a pitch on Shark Tank. Smiling, in particular, was found to be a positive indicator.

💡Body Language

Body language encompasses the gestures, posture, and movements that communicate non-verbally. The video discusses how body language, such as nodding and smiling, can influence the outcome of a pitch on Shark Tank, with positive body language associated with a higher success rate.

💡Storytelling

Storytelling is the art of telling a story to engage and persuade an audience. In the video, storytelling is highlighted as a key component of a successful pitch, with entrepreneurs who weave a compelling narrative about their business being more likely to secure a deal.

💡Vocal Power

Vocal power refers to the strength, variability, and expressiveness of one's voice. The video emphasizes the importance of vocal power in pitches, suggesting that a strong and dynamic voice can captivate investors and increase the chances of a successful deal.

💡Math

In the context of the video, 'math' refers to the financial calculations and projections presented by entrepreneurs. The research found that accuracy in financial math was crucial; any errors or overvaluations could act as a 'deal breaker,' significantly reducing the chances of a successful pitch.

💡Interaction

Interaction in the video script refers to the engagement between the entrepreneur and the sharks, such as product demonstrations or participation in the pitch. The research indicated that pitches with interactive elements were more successful, as they kept the sharks involved and interested.

💡Research Experiment

A research experiment, as mentioned in the video, is a systematic method of investigation used to discover new knowledge or test a hypothesis. The video describes an experiment conducted by Vanessa van Edwards and her team to analyze all 495 pitches on Shark Tank to identify patterns that lead to successful outcomes.

Highlights

Vanessa van Edwards and her team conducted a research experiment on Shark Tank to understand the factors behind successful pitches.

They analyzed 495 pitches from the show to identify patterns that lead to success or failure.

253 pitches resulted in a 'yes', while 242 resulted in a 'no', showing an almost even split.

Pitches were coded based on various factors such as facial expressions, body language, and product integration.

Entrepreneurs who smiled and nodded during their entrance were more likely to get a 'yes'.

14% of 'yes' deals had the nod, compared to only 7% of 'no' deals.

45% of successful pitches smiled while walking in, versus 21% of unsuccessful ones.

Pitchers who both smiled and nodded were 9% more likely to get a deal.

Being interactive during the pitch significantly increased the chances of success.

81% of successful deals had some form of interaction, such as examining or consuming the product.

Storytelling was a key component in successful pitches, with 58% of 'yes' deals incorporating a story.

Vocal power, including variability and strength, played a crucial role in pitch success.

64% of 'no' deals had math problems, compared to 32% of 'yes' deals, making it a significant deal breaker.

The research also examined which sharks invested in the most women entrepreneurs.

Crying during a pitch was found to negatively affect the chances of getting a deal.

The study revealed that knowing your numbers and presenting them accurately is critical for a successful pitch.

Van Edwards offers further insights and critiques on perfecting elevator pitches.