The Questions Sharks Always Ask (and How to Answer Them)

The opening pitch on Shark Tank lasts a couple of minutes. The questioning that follows is where deals are actually won or lost. Across the 1,521 US pitches in our database, about 62% ended with a deal on air (see Shark Tank by the numbers), and the founders who walk out with an offer almost always have one thing in common: they answer the hard questions quickly, specifically and honestly.

The good news is that the questions are remarkably predictable. Whether you are heading to an open casting call, a local angel group or a meeting with a bank, the same handful of themes come up. Below is a practical list of those questions, what the investor is really trying to learn, and how to build an answer that survives a follow-up.

1. "What are your sales?"

This is almost always the first question, and it is the single most important number in the room. Sales tell an investor whether real customers are paying real money, and they anchor every other conversation, especially valuation.

How to answer

• Lead with lifetime sales, then the last 12 months, then this year to date. Three numbers paint a trend.
• Distinguish sales from orders, pre-orders and "commitments." A purchase order that has not shipped is not revenue, and saying otherwise destroys trust.
• Know your projection and how you got it. If you project growth, be ready to explain which channel produces it.

Example of a strong answer structure: "We've sold $640,000 since launching in 2023, $410,000 of that in the last twelve months, and we're at $180,000 so far this year." Short, specific and easy to follow.

2. "What does it cost you to make, and what do you sell it for?"

Sharks want unit economics: landed cost (manufacturing plus freight, duties and packaging), wholesale price and retail price. A product that costs $4 to land and sells for $20 retail and $10 wholesale has a very different future than one that costs $9 to land.

How to answer

• Give all three numbers in one breath: "Landed cost is $3.80, wholesale is $9, retail is $19.99."
• Know your gross margin by channel. Direct-to-consumer margins look great until you subtract shipping and ad spend.
• Have a plan to improve cost at scale, such as a quote from a manufacturer for a larger run.

Consumer products with strong margins and broad appeal tend to attract the Sharks who specialize in retail and TV shopping. Scrub Daddy, which closed a deal with Lori Greiner in Season 4, is a classic example of an inexpensive household item with mass-market potential. For a deeper dive, read Know Your Numbers.

3. "How did you come up with the valuation?"

When a founder asks for $200,000 for 10%, they are claiming the business is worth $2 million. Sharks will immediately compare that to sales. If the company has $150,000 in annual sales, that is more than 13 times revenue, and the founder needs a very good reason.

How to answer

• Show the math you used: a multiple of sales or profit, comparable companies, or the cash you need versus the dilution you can accept.
• Acknowledge the gap if there is one, and explain what justifies it (strong growth, patents, signed retail placement).
• Avoid citing the value of hypothetical future sales. Investors pay for what exists today and discount what might happen.

Our guides to how valuation works on Shark Tank and valuing your startup walk through this in detail, and the valuation calculator does the arithmetic for you.

4. "How do you get customers, and what does it cost?"

This is the customer acquisition cost (CAC) question. Sharks have seen plenty of businesses with great products that spend $40 in ads to sell a $30 item. They want to know which channels work: Amazon, retail, wholesale, paid social, influencers, events or word of mouth.

How to answer

• Name your best channel and its cost: "Paid social brings in customers at about $14 each, and our average first order is $42."
• Mention repeat purchase rate if it is good. A customer who buys three times is worth far more than one who buys once.
• If you don't know your CAC yet, say so and explain how you're measuring it. Guessing is worse.

5. "Why hasn't a big company already done this?"

Also phrased as "What stops someone from knocking this off?" Sharks are asking about defensibility: patents, trademarks, exclusive suppliers, brand loyalty, a community or simply speed.

How to answer

• Be precise about intellectual property. "Patent pending" (a filed application) is not the same as an issued utility patent, and design patents protect appearance, not function.
• If your moat is brand, prove it with repeat customers, reviews or press.
• Don't claim you have no competition. Every product competes with something, even if it's the way people currently solve the problem.

The Mission Belt, which landed a deal with Daymond John in Season 4, competed in a crowded category (belts) by focusing on a distinct feature: a ratchet design with no holes.

6. "What will you do with the money?"

A specific use of funds signals a founder who has thought about what actually limits growth. "Marketing" is a weak answer. "Inventory for our first national retail order, plus a second production mold" is a strong one.

• Break the ask into two to four line items with approximate amounts.
• Tie each line to a result: more units, a new channel, a key hire.
• Explain why you need a Shark's expertise and network, not just their cash. Many founders could get money elsewhere.

7. "Is this your full-time job?" and "How much have you invested?"

Sharks invest in people. They want to know whether the founder is committed, how much of their own money or time is at risk, and whether they will still be running the company in three years. Founders who are still working a day job aren't automatically disqualified, but they should have a clear plan and date for going full time.

Founders who have taken little or no outside capital often answer this question well because the numbers speak for themselves. See bootstrapping lessons from Shark Tank founders for more.

8. "How much debt do you have?" and "Who else owns the company?"

These are cap table and balance sheet questions. Loans, existing investors, convertible notes, licensing agreements and royalty obligations all affect what a Shark is buying. Surprises here are one of the most common reasons a handshake deal falls apart in due diligence. Disclose them upfront.

9. "What's your exit?"

Sharks are investors and eventually want a return. Possible answers include profitable growth with distributions, acquisition by a larger company, or a licensing arrangement. You don't need a definitive answer, but you should show you've considered how an investor might get paid back. A small number of companies in our database later show an "acquired" status, including some that got a deal on air and some that didn't, which is a reminder that exits come in many forms.

A quick-reference prep sheet

How to practice

1. Write every question above on an index card. Answer each one aloud in under 20 seconds.
2. Get grilled by someone skeptical. A friend who interrupts is better practice than a friend who nods.
3. Practice saying "I don't know, but here's how I'd find out." Sharks tend to respond far better to honesty than to invented numbers.
4. Watch real pitches in your category. Browse food founders such as Cousins Maine Lobster or Wicked Good Cupcakes, or a no-deal founder such as Kodiak Cakes, and notice which questions come up.

Popular, well-run businesses still face tough questions. Even pitches that drew offers from multiple Sharks, like Breathometer (which our records show closing with all five Sharks in Season 5) or Bombas (a Season 6 deal with Daymond John), had to justify their numbers.

The takeaway: the Sharks' questions aren't traps. They are the same questions any serious investor will ask, and having crisp answers is valuable whether or not you ever stand on that carpet.

Next, learn how to structure the pitch itself in How to Pitch Like a Shark Tank Winner, or review the mistakes that kill deals.