The Myth of ‘Shark Tank:’ What VC Funding is Really Like
Publicado por admonESHIP
viernes, 10 de mayo de 2013 a las 09:16
For those who have watched ABC’s ‘Shark Tank,’ it might seem like simply having a great business idea is enough to get a venture capitalist to invest millions in your brand. Not so. Just like with any “reality” television program, viewers don’t see what’s really going on behind the scenes. Nor is the program indicative of what real “sharks” are like.
Myth 1: It’s That Easy to Get in Front of Investors
You’ve seen footage of the long lines of would-be stars who wait in line all day to audition for ‘American Idol.’ It’s no different for ‘Shark Tank.’ Thousands of entrepreneurs submit their ideas, and only a handful are chosen. Even fewer of those that pitch the Sharks are actually aired online.
Getting in front of a non-celebrity investor can be just as hard. Before the Recession, VCs were eager to discover the next Facebook or eBay, but now they’ve backed off, and are extremely picky about the companies they invest in. They’ve also reduced the average deal size, and the number of seed-stage deals. Many startups will be better off searching for an angel (i.e., a business person willing to make investments, often in your local community), rather than approaching a professional venture capital firm.
More information:What VC Funding is Really Like
10/05/2013 09:16 | admonESHIP