Shark Tank India, known for its high-stake investment pitches, often sees entrepreneurs securing lucrative deals on television. However, according to Namita Thapar, one of the judges (sharks) on the show, a significant number of these deals fail to materialize after the show ends. In a candid interview, Namita highlighted the challenges during the due diligence process, citing a “lack of integrity” on the part of founders, some of whom “ghost” the investors post their televised deal.
Namita Thapar, shedding light on the post-show scenario, emphasized that viewers often remain unaware of the complexities that unfold beyond the tank. She expressed the importance of understanding why a substantial number of deals do not come to fruition. The due diligence process involves scrutinizing various aspects, and founders occasionally provide inaccurate information, leading to integrity concerns.
“A lot of people are very clueless when it comes to the count of investments because what they don’t realize is when we start doing our due diligence, there are multiple things that… there’s literally a lack of integrity on the part of founders. There are many founders who have ghosted me,” Namita revealed.
She further explained that discrepancies in the numbers quoted during the pitch and the actual figures discovered during due diligence contribute to the deal fallout. Namita mentioned instances where founders, post-pitch, revealed they had multiple companies and were not inclined to merge them for the deal to proceed.
Namita Thapar stressed that integrity issues play a crucial role in the disparity between what is presented on the show and what transpires during due diligence. She encouraged viewers to be aware of this margin and the complexities involved in finalizing deals.
Vineeta Singh, another Shark Tank India investor, added that after a business pitch airs on television, founders may receive more favorable deals from other investors, leading them to reconsider the initial agreement.
“Once they air, they get better deals outside so then they prefer to go with those. I understand where an entrepreneur is coming from, where they are optimizing for valuation, feels unfair… but you have to… I mean that’s the rule of the game,” Vineeta said.
Aspiring entrepreneurs and Shark Tank enthusiasts are urged to consider the intricate process that unfolds behind the scenes, where the journey from pitch to a finalized deal is riddled with challenges and negotiations.
