'Shark Tank Deal Completion Can Take 3-9 Months': Anupam Mittal Responds to Allegations of Delayed, Abandoned Funding According to reports, winning Shark Tank India contestants have not yet received their funds while the show prepares for a third season. In a LinkedIn post, Shark Anupam Mittal defended the show's integrity.
By Sujata Sangwan •
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Shark Tank India has been the subject of controversy as a result of claims that the competition winners had not yet received their prizes. The revelation came out in conjunction with the popular show's third season plans and the release of a promotional trailer. Ashneer Grover, a former judge on the competition show, criticised the other judges in the meantime and advised the sharks to "put the money they planned to invest in an escrow account."
Solution is simple - ask Sharks to put money in escrow before shoot starts ! Dene ke liye paisa hona bhi chahiye ;)
— Ashneer Grover (@Ashneer_Grover) June 26, 2023
Sharks or Dolphins? Ashneer Grover fires salvo amid escalating founder-investor rift on Shark Tank India https://t.co/DM8VIa6JdD
"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," wrote Shark Anupam Mittal in an in-depth LinkedIn post.
According to Mittal, the "single most important piece of data to gauge the integrity of the show is the Completion Ratio". He said that Shark Tank India had a "record of sorts" with two thirds of the deals being completed.
In August, "Shark Tank Season 2 CR will be available, and based on deal momentum, I am confident that it too will be healthy," he continued.
Additionally, he extended an open invitation to the unnamed founders and urged them to speak up. Let's fix that, he pleaded, in the rare instance that you have been wronged.
Additionally, Mittal listed three causes for potential fund disbursement delays.
"Most of the businesses on the Tank are at a very early stage. Many are proprietorships, which first need to be registered as Companies. The founders have never seen an SHA, nor do they have readily available numbers. Our teams hand-hold them through many of these issues. As a result, deal completion can take 3 to 9 months depending on the readiness of the Company and the founders," he clarified.
Deals may also fall through if the founders change their minds or the company fails legal, financial and/or tax diligence OR the founders do not meet the obligations agreed to while accepting a conditional deal.
"Some founders like to renegotiate or deal-shop which can also delay completion. Personally, I don't encourage this but am always open to finding win-win structures as many of my investee cos will attest to," he added.
"It's important to note that not every firm that pitches on Shark Tank India, or to any VC individually will be successful or eligible for equity capital. VCs frequently change their minds; this is nothing new. This is and shouldn't also be associated as an issue with just Shark Tank," according to Karun Arya, Chief Growth Officer at GetVantage. "The old paradigm of fundraising is flawed, which is why the majority of entrepreneurs find the process of fundraising difficult and discouraging."
