Re:What does HN think of the show Shark Tank?
by BrandonWatson on Sunday August 23, 2009 @03:41PM
(#780885)
I like seeing what projects on which people are working, but the investors are ridiculous. There's no amount of diligence presented, they never justify the valuations they pull out of the air, they always seem to want to own 51%, and they act like they are the only way that one of the entrepreneurs is going to make it. It feels almost predatory on the poor entrepreneurs they bring in front of the panel.
Of course, I have it on my DVR and can't not watch it. Someone said it was like a car wreck - more like a blimp accident.
Re:What does HN think of the show Shark Tank?
by jack7890 on Sunday August 23, 2009 @01:55PM
(#780718)
It's a ridiculous caricature of what investor-entrepreneur relations are like.
I find the show vaguely nauseating. But even if you enjoy watching, realize that it's an entertainment gimmick, nothing more. I doubt many of the "deals" are ever transacted.
Re:What does HN think of the show Shark Tank?
by kyro on Sunday August 23, 2009 @02:15PM
(#780742)
Yeah, I get it's injected with lots of drama. It's a TV show, so that should be expected really. I doubt an hour of real-world entrepreneur/VC pitching/negotiations would appeal to the masses, other than us, of course.
However, I really do like the show. I'm a fan of the British version - Dragon's Den. Yeah, the stacks of money on the tables are a bit much, but I actually find a lot of the ideas being pitched quite interesting, as well as the questions the VCs do ask. They seem to be pretty quick to shoot down stupid ideas, and do try to find flaws, so although it is a dramatization, I don't think it's a gross misrepresentation of how any VC would view a particular idea.
Re:What does HN think of the show Shark Tank?
by johns on Sunday August 23, 2009 @02:27PM
(#780767)
I agree. I'm glad they don't hesitate to let people know they're on the wrong track. On one episode, they mentioned that these people have probably never had anyone among their friends and family tell them its a bad idea. For a lot of these ideas, these people really needed a reality check.
Re:What does HN think of the show Shark Tank?
by bradgessler on Sunday August 23, 2009 @03:35PM
(#780873)
I get a huge kick out of the piles of cash they have out during the pitch. I find it mildly entertaining in a "driving by a car accident" way when I have nothing else to watch on Hulu.
Shark's Tank falls short because it doesn't have the same kind of dialog as either the BBC or CBC dragon's den. The depth of analysis the dragons go into is great and can really help entrepreneurs understand how to get into a good business.
There was a CBC episode or two where some software products were shown and one of the dragons had a background in software and he loved the idea just for being software. I don't remember anything special about the particular product, but 100% margins were the topic of conversation.
Re:What does HN think of the show Shark Tank?
by philwelch on Sunday August 23, 2009 @05:59PM
(#781085)
By pg's equity equation, airing your pitch on national television would have to increase your valuation by marginally over 2% (2.04% or so) to make that deal worth it. I'd take it.
Re:What does HN think of the show Shark Tank?
by tjr on Sunday August 23, 2009 @09:56PM
(#781354)
Based on the one-ish episode I've seen... there are some interesting bits, but also a lot of absurdity. Both the valuations proposed by the business owners and the ownership-percentages proposed by the "sharks" seem surprisingly high.
I suspect a lot of these deals could go quite a bit better on an order of magnitude lower scale.
Re:What does HN think of the show Shark Tank?
by joez on Sunday August 23, 2009 @02:20PM
(#780754)
I get a kick out of refreshing ideas but it feels like a horse kicked me when I see these people who have no idea of what their underlying expenses and scale are like.
Re:What does HN think of the show Shark Tank?
by pmorici on Sunday August 23, 2009 @07:08PM
(#781178)
Seems like all of the offers that are made are for greater than 50% of the business. Doesn't that mean they are basically buying controlling interests?
Of course, I have it on my DVR and can't not watch it. Someone said it was like a car wreck - more like a blimp accident.
I find the show vaguely nauseating. But even if you enjoy watching, realize that it's an entertainment gimmick, nothing more. I doubt many of the "deals" are ever transacted.
However, I really do like the show. I'm a fan of the British version - Dragon's Den. Yeah, the stacks of money on the tables are a bit much, but I actually find a lot of the ideas being pitched quite interesting, as well as the questions the VCs do ask. They seem to be pretty quick to shoot down stupid ideas, and do try to find flaws, so although it is a dramatization, I don't think it's a gross misrepresentation of how any VC would view a particular idea.
http://www.cbc.ca/dragonsden/
Shark's Tank falls short because it doesn't have the same kind of dialog as either the BBC or CBC dragon's den. The depth of analysis the dragons go into is great and can really help entrepreneurs understand how to get into a good business.
There was a CBC episode or two where some software products were shown and one of the dragons had a background in software and he loved the idea just for being software. I don't remember anything special about the particular product, but 100% margins were the topic of conversation.
I think it can be a great deal because you get to broadcast your pitch on primetime TV for free - I probably wouldn't go on it for the money, though.
It also made me realize how good a deal YC is.
Dragon's Den isn't much better, either. It just has worse startups.
I suspect a lot of these deals could go quite a bit better on an order of magnitude lower scale.