Anupam Mittal’s Insights: The 3-9 Month Timeline for Shark Tank India Deal Completion
Anupam Mittal’s Insights: The 3-9 Month Timeline for Shark Tank India Deal Completion
One of the judges on the show, Mittal, made his remarks in response to claims made by some of the participants on Shark Tank India that the investors had used delay strategies when it came time to contribute money.
The entrepreneurial reality show “Shark Tank” has gained immense popularity worldwide for its unique concept of allowing budding entrepreneurs Entrepreneurs present their business concepts to a group of accomplished investors called “sharks.” There is a show called “Shark Tank India” that is an Indian version of the original show. has garnered a large fan following since its launch. One of the critical aspects of participating in Shark Tank India is securing a deal with one of the sharks.
However, according to Anupam Mittal, a prominent investor and shark on the show, the completion of a deal can be time-consuming, typically taking between three to nine months.
Deal completion for investments accepted on the reality series Shark Tank India can take three to nine months, depending on how ready the firms and the Shark Tank India founder-investors are, Anupam Mittal, the creator of Shaadi.com, wrote on Tuesday on LinkedIn. Shark Tank is a reality TV programme where company owners present their business plans to a panel of investors. The US is where it was created and debuted.
Shark Tank India presents a golden opportunity for entrepreneurs to secure funding and mentorship from experienced investors. The show offers a platform for innovators, inventors, and business owners to showcase their products, services, and ideas to the sharks who have a keen eye for investment opportunities. The sharks then evaluate the pitches, negotiate deals, and decide whether or not to invest in the presented ventures.
One of the judges on the programme, Mittal, made his remarks in response to claims made by some of the participants on Shark Tank India that the investors used delay strategies when it came to actually investing money.
One of these competitors claimed to have gotten “soft commitments” to appear on the programme in September 2022. “Normally, a fundraising transaction takes two to three months to complete, but sharks (investors) purposefully delay the process until the proposal is broadcast. They want more documentation, their legal team won’t return your calls, and their staff will offer clumsy justifications like “we’re on vacation” or “the new year has begun” to avoid responding to your inquiries.
Most companies on The Tank are still in their very early stages. Numerous are sole proprietorships, which must first register as corporations. The founders have no publicly available figures and have never seen a shareholder agreement (SHA). Our employees assist customers in navigating many of these problems, Mittal said in a post on LinkedIn to explain the holdup.
In contrast to Shark Tank India Season 1, which aired last year, he claimed that over 60% of transactions made on-air at Shark Tank US materialize.
Deals can fall through for various reasons, according to him, including the founder changing their mind, the firm failing legal, financial, and tax due diligence, or the founders failing to fulfil their end of the bargain when accepting a conditional offer.
According to Mittal, the programme received over 200,000 entries, 388 pitches, and 200 bids totalling roughly Rs 150 crore have been made thus far.
Aman Gupta, a different Shark Tank judge and the creator of the consumer electronics company Boat, revealed to ET that he is now performing due diligence for Season 2.
According to Gupta, funders who don’t want our investments, want to renegotiate the terms presented in the Tank or may have come for marketing-only purposes sometimes ask me for these things after the show has aired. He stated, “As an entrepreneur myself, I always support the founders and allow them to make the best decisions for their company,” adding, “However, I reserve the right to refuse if there are any issues found during the due diligence process.”
The Lengthy Deal Completion Process:
Anupam Mittal, the founder of People Group and an accomplished investor, shed light on the timeline for completing deals made on Shark Tank India. According to him, the process can be considerably longer than viewers perceive on the show. Mittal highlighted that despite the excitement and enthusiasm generated during the show, it takes time to finalize the terms and conditions, conduct due diligence, and ensure that both parties are satisfied with the proposed investment.
- Negotiations and Deal Structure:
The negotiation process begins once a shark decides to invest in a venture. This stage involves discussing the terms of the investment, including the equity stake, valuation, and potential strategic partnerships. The entrepreneur and the shark aim to reach an agreement that benefits both parties.
- Due Diligence:
After the initial negotiation phase, the investor conducts thorough due diligence to gain deeper insights into the business, its financials, and market potential. This process includes analyzing financial statements, business models, customer acquisition strategies, and potential legal or operational issues. Due diligence ensures that the investment decision is well-informed and mitigates risks associated with the investment.
- Legal Documentation:
Once due diligence is completed and both parties are satisfied, legal documentation is prepared to formalize the investment deal. This includes drafting investment and shareholder agreements and other necessary legal documents. The legal process ensures that all parties rights and obligations are protected.
- Closing the Deal:
The final step involves signing the legal documents, transferring funds, and officially closing the deal. This step solidifies the investment agreement and marks the completion of the Shark Tank India deal.
The timeframe for completing a Shark Tank India deal can vary depending on several factors. The complexity of the business, the magnitude of the investment, the availability of required legal documentation, and the readiness of the entrepreneur to comply with the agreed terms all play a role in determining the overall timeline.
Market conditions and regulatory factors are external influences. requirements can also influence the deal completion duration.
While the intense pitches, dramatic negotiations, and exciting investment offers on Shark Tank India make for engaging television, completing a deal is time-consuming. Anupam Mittal’s statement about the deal completion time, ranging from three to nine months, highlights the intricate steps in finalizing an investment agreement. Entrepreneurs participating in the show must be prepared for this extended timeline and exercise patience during the negotiation, due diligence, legal documentation, and closing stages. Despite the lengthy process, Shark Tank India continues to be a highly sought-after platform for entrepreneurs seeking funding and guidance from seasoned investors.
