Shark Tank India, the popular entrepreneurial reality show, has recently been caught up in a whirlwind of controversy. Reports have emerged claiming that several start-up founders have yet to receive their promised funds from the judges. As the show gears up for its third season, former shark (season 1) Ashneer Grover took a jab at his fellow judges, urging them to place the money they planned to invest in an escrow account.
In response to Grover's comments, shaadi.com founder Anupam Mittal took to LinkedIn with a post that featured a photo of a shark wearing a tie, surrounded by similarly dressed dogs barking in unison. The photo, cleverly headlined "BARK TANK," seemed to mock the critics of Shark Tank India.
Mittal, in his LinkedIn post, began by addressing the numerous accusations that have been hurled at the show over the years. He emphasized that these allegations lack substance, relying on pre-determined narratives without any supporting data or credible sources.
“In every case, it’s not hard to spot a pre-determined, ill-intentioned narrative with no data or sources to back said claims. It is no surprise, then, that another flimsy controversy is doing the rounds. Again, no data, no real names. Just finger-pointing and in one case, an angry & irrelevant commentator thrown in for added masala,” he said, likely alluding to Grover’s comment.
Although Mittal refrained from commenting on specific instances due to the lack of names provided, he shared his broader views on the matter. He stressed the importance of looking at data and facts rather than relying on anecdotal evidence. One crucial metric he highlighted was the Completion Ratio (CR), which measures the percentage of deals that come to fruition.
“Globally, but more specifically in US Shark Tank, ~60% of the deals go through. Shark Tank India S1 saw the completion of 2/3rds of the deals, which, afaik, is a record of sorts. S2 CR will be available in August and based on deal momentum, I am confident it too will be healthy,” he wrote.
Mittal delved into the factors that contribute to the completion ratio and the timelines involved. He acknowledged that many businesses appearing on the show are at a very early stage, often operating as proprietorships that need to be registered as companies. These founders are often unfamiliar with shareholder agreements (SHA) and lack readily available financial figures. Consequently, the process of deal completion can take anywhere from three to nine months, depending on the company's readiness and the founders' ability to meet the necessary requirements.
Furthermore, Mittal pointed out that deals may fall through for several reasons. Sometimes, founders change their minds, companies fail legal, financial, or tax due diligence, or founders fail to fulfill the obligations agreed upon in a conditional deal. These occurrences are part and parcel of the deal-making landscape.
Moreover, Mittal addressed the issue of founders attempting to renegotiate or "deal-shop," which can also lead to delays in completing the transactions. While he expressed his personal discouragement of such behavior, he said he remained open to finding win-win structures.
Expanding on a broader level, Mittal shed light on the impact Shark Tank India has had in “democratizing Indian entrepreneurship”. He claimed that the show had approximately 200,000 entries, 388 pitches (of which nearly 50% were made by women), and around 200 offers totaling approximately 150 crores.
Mittal concluded his post by inviting anyone who has made claims against the show to come forward. He emphasized the need for specificity and data-driven critique, rather than relying on loose anecdotes and so-called "expert" opinions that only serve as clickbait, often being incomplete or far from the truth. For those founders who genuinely believe they have been wronged, he offered an opportunity to rectify the situation.
“In the exceptional case that you have been wronged, let’s fix that. If you are just pissed off because you couldn’t extract money without meeting your obligations, well, lesson well learned,” he signed off.
Rahul, a founder on season two, secured a deal from Anupam Mittal but to 10 months later, Rahul told Moneycontrol that there have been fundamental disagreements over what was earlier agreed upon (with Mittal), and he’s even been told that his business is not viable.
Many founders have said that the sharks reassess the deal after offering it, and have even gone on to ditch the founders subsequently.
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