Earnings Before Interest, Taxes, Depreciation & Amortization. Add back your salary to net profit for realistic EBITDA.
Gross = Revenue minus COGS. Net = Final profit after all expenses. Sharks prefer 40%+ gross and 10%+ net margins.
Low/no salary inflates profits. Sharks add market-rate salary to see true profitability.
Revenue: 1-3x (early), 3-5x (growing). EBITDA: 4-8x (profitable), 8-15x (high growth).
On Shark Tank India, entrepreneurs pitch their startups by asking for investment in exchange for equity. The valuation formula is: Investment ÷ Equity × 100. If you ask ₹1 Crore for 10%, your startup is valued at ₹10 Crore (pre-money).
Read our detailed guide on Shark Tank India Valuation: Complete Guide to Equity & Funding