Which business models close?
Marketplaces closed 88% of the time (16 pitches), consumer brands 77% and business-to-business sellers 58%.
Deal rate by business model and by revenue model
Correlation, not cause.
Marketplaces, which connect buyers and sellers, closed a deal in 88% of their 16 pitches. Brands that sell straight to consumers closed 77%. Companies that sell to other businesses closed 58% of 43 pitches.
Switch to the revenue model above the chart: companies that sell products closed 76% of the time, those that charge service fees 55%. Investors on the show like things they can touch, stock and sell.
These are correlations, not causes: consumer products also dominate the show’s best industries. If you sell to businesses, expect more questions on your contracts and how long customers take to pay.
What was said
Ayman Abbas
ConcernMy issue is also that you're acting as a marketplace in what is a small overall market, which makes you a middleman.
Solar Sector (Solar Sector) · S6 E2 · 7:53 · Paraphrased
Ahmed Tarek Khalil
ConcernYou're not a tech company; you're probably amazing at tech, but you're not doing a tech play.
Cardo (Cardo) · S4 E1 · 32:31 · Paraphrased
Yasseen Mansour
ConcernThe business is still way too early, and I don't see that you have a clear business model.
Lernova (Lernova) · S3 E11 · 8:15 · Paraphrased