Ashneer Grover calls Shark Tank judges 'dolphins' over deal delays
Ashneer Grover, the controversial co-founder of BharatPe and a former judge on Shark Tank India, has called current sharks (judges) on the show "dolphins." Grover's comments came amid an increasing rift between judges and entrepreneurs that secured deals on the show. Many entrepreneurs have alleged that sharks are delaying the closure of deals they agreed to. Let's see what the founders are saying.
Why does this story matter?
Shark Tank offers entrepreneurs a platform to pitch their companies and secure funding. We often see sharks fighting over a company they like on the show. However, several founders allege that the interest the sharks exhibit during Shark Tank dies down during negotiations outside the show. This raises serious questions about the show's relevance and deal-making capacity.
Founders allege that sharks reassess deals after the show
Founders allege that Shark Tank judges reassess deals they offered after the show. According to them, changing terms and renegotiation of valuation have become common post-show practices. Per Moneycontrol, sharks reevaluate deals based on online traffic an episode generates and audience response, among others. Founders say their businesses have reached the verge of a shutdown due to sharks' U-turns.
Several founders are left stranded after the show
A founder who secured a deal with Shaadi.com's Anupam Mittal was told his business is not viable, reported Moneycontrol. There were also fundamental disagreements over the terms agreed on the show. Another entrepreneur had to wait six months for a follow-up meeting after the show. During the meeting, they were asked to lower the valuation of their company.
Sharks are expected to make decisions quickly: Grover
One founder was told the one-hour pitch during Shark Tank isn't enough for sharks to understand the company. "Sharks are called sharks because they're expected to take decisions and act quickly so that the 'fish' (the pitcher) has no time to react. If they say 'no it takes time,' then they shouldn't be called sharks—they should be called dolphins instead," Grover said.
It usually takes a year to complete deals: Mittal
According to Mittal, a clear picture of deal completion will be available six months after a season ended. He added that a Shark Tank deal usually takes one year to complete. Grover does not agree with that. "It's stupid to take a year to close a deal one has promised on the show," Grover said. "It is unfair to the business," he added.
Sharks must invest their money in an escrow account: Grover
Grover believes the money offered to entrepreneurs must be with them before the show is aired. According to him, that way they can "capitalize on the spike in demand." He suggested sharks should put the money they plan to invest in an escrow account. "That way there is accountability and a budget, which ensures that none of them over-commit and later cancel," he added.
