You have the wrong idea about the show. It exists to promote the shark's own businesses and products under the guise of a contest reality show. To keep up the facade, they allow other companies to put their products up for a price, and intersperse a couple of silly products to keep people watching.
It's just dressed up advertising, it's not about investing or business by any flip of the coin.
This isn't true, the only thing that is "fake" is how much time they spend asking questions. From speaking to a "dragon", they spend about 45-60 minutes assessing the product/idea. After that, if they choose to invest, they invest.
If that's true, it might not be very effective. Having seen the show a fair few times, I have only the vaguest idea of what the Sharks' interests are, other than FUBU--basketball owner? something to do with QVC?
It's just dressed up advertising, it's not about investing or business by any flip of the coin.