‘Shark Tank’ is arguably one of the most-watched entrepreneurial TV shows today. The show is famous for its ability to put new business start-ups on the map and jumpstart their dreams. A ray of hope has been given to aspiring entrepreneurs recently. Kevin O’Leary, one of the judges on the show, reveals that the show is receiving an “overwhelming” number of new applications.
Now, let’s explore this internal mishap and how it could potentially benefit entrepreneurs. Plus, what investors and aspiring entrepreneurs can learn from this shift?
GTN | While exotic investors take sales pitches of entrepreneurs with a pinch of salt, it is set to be more intense.
The 15th Season Will Focus on Royalty-based Deals
‘Shark Tank’ is known for giving entrepreneurs an opportunity to pitch their ideas to experienced judges. In turn, they have the option to invest their own money into the budding startup. However, Kevin O’Leary’s latest tweet reveals that due to a lack of venture capital money, most of the deals will be for royalty instead of equity stake. Consequently, this may prove to be a blessing in disguise for aspiring entrepreneurs.
This news could mean that venture capitalists and angel investors are becoming increasingly cautious with their investments. Thus, seeking safer deals with less exposure. Consequently, entrepreneurs could start exploring non-traditional funding avenues.
Be it crowdsourcing or crowdfunding. This could be a huge opportunity for entrepreneurs who are looking to start and grow small businesses. Of course, these alternative routes prove to be low-cost and less risky than traditional methods of fundraising.
The Talks | Opposed to the previous seasons, Sharks will be making a shift to royalty-based investments this year – Kevin reveals.
Greater Exposure to Innovative Ideas
The ‘Shark Tank’ judges have always held an integral role in shaping the TV show as their investment deals are a major part of the content. Hence, the decision to switch to royalty deals may indicate that the judges on the show understand that the economy and investment climate are in a changing phase.
They will likely recognize that moving away from equity-based investments in favor of royalty deals could generate more interest. And provide the show’s audience with greater exposure to innovative ideas. Financial investments are always accompanied by inherent risks. However, what investors can take away from this is to be cautious with their investments and always perform their due diligence.
The ‘Shark Tank’ judges’ controversy with SVB shed light on the importance of trust. Essentailly, the sharks invested in a fund that they thought was trustworthy – only for the business to collapse. Thus, it is imperative for potential investors to carefully evaluate their investments and proactively monitor them to mitigate risk and ensure the longevity of their funds.
BBC | By shifting to royalty-based equities, the Sharks are aiming at providing greater exposure to innovative ideas.
Parting Thoughts
Uncertainty and setbacks in the investment world can pave the way for new opportunities. Currently, this is what exactly is happening with the ‘Shark Tank’ internal mishap.
Entrepreneurship is driven by change, innovation, and vision. With the increase in the number of applications for the show, entrepreneurs can see a new generation of businesses emerge. Plus, Kevin O’Leary’s tweet suggests that the coming season of ‘Shark Tank’ will offer more royalty-based deals instead of equity-based agreements.
So, investors and entrepreneurs can approach this from a positive perspective. Thus, recognizing the changing investment climate. And the new opportunities that come with it.
