SHARK TANK INDIA is a programme I think every youngster with the thought of getting on to the entrepreneur – start-up landscape must be watching. If not, it is their loss. It is different that the term that the reality show has added to the common man not a positive, but a logic and reason driven ‘I am out’. Not a surprise when one hears a group member silently react to the next weekend’s programme by ‘I am out’. And at the same time, friends asking for their ROI for their efforts.
SHARK TANK – LEARNING.
There is so much of learning in Shark tank. It tells one what to watch out for, what the investors could be looking at, what is the right time and type of pitching, how the investors look at the founder history and passion to punt at the idea.
It also explains various termnology and demonstrates time and again why an entrepreneur must have a deep domain knowledge. Shark Tank is superbly motivating and encourages the audience to try out and live their life. After BiggBoss (Color TV), Shark Tank India (Sony TV) is now one of the favourite reality shows and I am catching up on the episodes on you tube.
It is a good programme to learn from others approach- success and failure. If one really immerses in the programme (which is recommended) it has the potential to help reflective self-meditation.
It is an entertaining and educational experience. Many times, you get involved and like in a match pray for someone to get the investment. At some other time, you pat yourself in seeing the idea, its scalability or raising a question just like what the sharks do in the episode.
It is a no cost training for the Indian entrepreneurs to learns about investing and pitching and be prepared in their real life to better negotiate the ground realities. If nothing else, it exposes them to the way how they should be evaluating their own business ideas and innovations. And that is a huge learning.
THE SHARKS OF SHARK TANK
Shark Tank has brought the few famous dreamers and achievers from young India face to face with the other set of people wanting investments. People like Aman Gupta (boat), Amit jain (Cardekho), Anupum Mittal (Shaadi.com), Ashneer Grover (ex-founder BharatPe), Azhar Iqubal, Deepinder Goyal (Zomato), Ghazal Alagh (Mamaearth), Namita Thapar (Emcure Pharmaceuticals), Peyush Bansal (Lenskart), Radhika Gupta (MD & CEO, Edelweiss Mutual Fund ), Ritesh Agarwal (OYO Rooms), Ronnie Screwvala (UpGrad), Varun Dua (Acko), Vineeta Singh (Sugar Cosmetics) have featured as five investor most of the episode since 20121 in the three season.
DEALS
The first two seasons collectively had 87 episodes with some 244 deals worth approximately 95 crores of investment across all the sharks. The season 3 (expected 35 episodes) is streaming now and is expected to be of a bigger scale with higher value of deals..
SHARK TANK CONCEPT.
The concept of the show is simple and straight forward. It entails the entrepreneurs and the founders making business pitches to a set of five sharks (investors- mostly self-made multi-millionaires) for investing in their business. They quote their ask and in terms of money against a pre-set percentage of equity. . The pitch presentation mostly is based around the people- their role- product or service- the turnover and financials. Basis that short interactions the Sharks go on to probe further before deciding if they were willing to invest and at what valuation and how much. The discussion goes on to- possible duplication, other competition, status, EBITA, Profitability and future plans. The negotiation is usually around the valuation and quantum of investment as well as how many sharks are individuality and or collectively participate in the investment- if any.
SOME THOUGHTS.
There have been cases when people have been on the show more for visibility and marketing then really needing an investment, but that is the smartness of the entrepreneur and the failure of the TV channels production team in scrutinizing the candidates.
There has been also cases when the promised investment has not been finally made because in the due diligence process the sharks realized that the product or the service or the sales and the financial condition or parameters were not what they were shown- shared and presented on the show. It all happens, and any bad noise must be taken with a pinch of salt.
SHARK TANK LEARNINGS.
Through the show I have seen, witnessed, and realised how wonderfully innovative people are. Shark Tank has introduced me to few products like the Honey Twigs and (Bacca Bucci), that I have tried.
Every episode has a learning embedded in it. It depends upon you how much you absorb from the show. Maybe reading the book SPONGE and Catalyst could help. I have my own understanding and thoughts from the show.
The learnings
- Investors are investing on to the founder and their dreams.
- Investors at the end is looking for an exit bat a later date and a multiplier to their investment.
- The founder – leader must deep dive on the category and know it as well as its supplementary and complimentary products and services.
- Burnout is a term that is losing its importance and profitability and scalability is more important.
- There is a stage before which one should not be looking at investors.
- The investor should be synergic t the category and bring in more than just money.
- The entrepreneur must negotiate the best deal.
- The sharks are sharks because they are more concerned about their investment and hence the entrepreneur must be very clear about their ground realities.
- The entrepreneur must have a valuation and investment below which they know they will walk out in-spite of which shark is making them the offer.
- It may sound good- but must be clear that the multi shark investment may not always be a better deal.
- At times one must stop being emotional and evaluate the future. Sometime, the best advice may not be further investment but closing the venture.
NET NET
You have an idea or not but want to be an entrepreneur at some stage of your life- or even if you don’t ever want to be starting your business- watch the show and enjoy free entertainment and learning.
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