Steve Baxter spent $300,000 a year on Shark Tank to hire full-time staff to do due diligence on his deals

Business InsiderSteve Baxter. (Source: Business Insider)

Shark Tank star Steve Baxter has revealed a couple of reasons why just 4 of 27 businesses that won investments on the Australian television show actually received the money.

Speaking to The Australian, Baxter, who has had two successful deals result from his nine agreements on the show, said he simply won’t go through with deals where all he has is “expenditure but no revenue”.

“That’s not something I want, but at the same time, I’m not going to invest in stupid things,” he said.

He also said some businesses don’t have a repeatable set of financial accounts or they don’t use software.

“Or if they do it’s that poorly configured that when you run the same report twice you get a different answer,” he said, “which doesn’t fill you with confidence.”

Baxter revealed that the show actually cost him about $300,000 a year because of the staff he had to hire to complete due diligence on deals.

He has been on the show since it started in Australia in 2015.

Baxter announced last week he is looking for a new owner for his startup hub River City Labs.

The Australian has more on his Shark Tank deals here.

NOW READ: Shark Tank’s Steve Baxter: ‘If you go to an investor for God’s sake have a business ready’

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