Re:Mark Cuban makes Shark Tank remove equity clause in contract
by corresation on Thursday October 03, 2013 @08:59AM
(#6488547)
The extensive due diligence is done after the show, which is why deals struck on the show often fall through later on.
Another reason is that many of those doing pitches don't actually want a deal, but instead simply want the exposure provided by the platform (which, I presume, is how the show managed to get that ridiculous equity clause in). Getting a "deal" is useful in that it makes it more likely that you'll make the cut and actually appear in an episode.
Dragons Den did a follow-up show where they talked about the majority of deals falling through afterwards for various reasons, among them that the pitchers had a change of heart.
Another reason is that many of those doing pitches don't actually want a deal, but instead simply want the exposure provided by the platform (which, I presume, is how the show managed to get that ridiculous equity clause in). Getting a "deal" is useful in that it makes it more likely that you'll make the cut and actually appear in an episode.
Dragons Den did a follow-up show where they talked about the majority of deals falling through afterwards for various reasons, among them that the pitchers had a change of heart.