Shark Tank's Daymond John looks for these essentials in a pitch

Since finding success as the founder and CEO of FUBU, Daymond John stepped into the TV spotlight and shines as one of star investors on ABC's Shark Tank. John is also the founder and CEO of The Shark Group.

John sits down with Yahoo Finance senior reporter Allie Canal to speak more on what he looks for in a pitch from the many entrepreneurs that come on Shark Tank to sell their products and their stories.

Make sure to watch Yahoo Finance's full interview with Daymond John.

For full interviews, highlights, and key insights, check out more from Yahoo Finance Invest.

00:00 Speaker A

What makes a pitch stand out to you and what are your non-negotiables when choosing who or what to invest in?

00:06 Daymond John

The things that make a pitch stand out to to me is that somebody's telling you a story. They're not pitching you, they're telling you how the train is leaving the station with or without you. They want you on the train but it's leaving the station. You get a little bit of FOMO. They also qualify themselves on why this problem existed and they were the one to solve it and they also tell you how they've overcome a lot of adversity and now where the numbers are and they've done it small and with your help they can do it big. The non-negotiables are the people that come in there and say, well if I get 1% of a 50 billion dollar market, I'll have X amount of dollars. Well, uh the bankruptcy market is way bigger than that. I promise you'll get 1% of that if you keep thinking like that. So, uh if you don't know your numbers and you don't know your customers, all you're doing is using my money as tuition. But if you know all those things and you can show proof of concept, then I'm in.

01:03 Speaker A

Yeah, you always have to be prepared. And after 15 plus seasons, I'm sure there's a pitch that still sticks with you today. Is is there a one that got away story or or a company that maybe surprised you down the line?

01:21 Daymond John

Yes, and by the way, it's 17 years of me suffering next to Kevin, but the the the pitch that got away, normally I couldn't care less because whatever is coming through the door, something else coming tomorrow, but I got beat out by Lori. She's a very mean lady. And she beat me out for a stupid looking little sponge called the Scrub Daddy. I see you know it already and every time, it's not that she beat me out for that, every time I walk in the store, there's a scrub daddy, there's a scrub mommy, there's a scrub baby, there's a scrub daughter, it's all, they're all smiling at me and I think she's done about 1.4 billion in sales to date.