Lessons in Raising Capital – Shark Tank
Aspiring entrepreneurs, inventors might find it hard to come across money to launch their start-up company or to find enough people to buy their products in order to allow their business to become successful. Shark Tank is a TV series that allows entrepreneurs, inventors to pitch their ideas to wealth venture capitalists in hopes that one of the panelists will make an investment offer. In exchange, the venture capitalist gets a stake in the company. This show gives an idea of what it is like to deal with investors and what meetings with investors are like. Although, not everyone gets a deal, participating on the show can bring exposure to the product to different markets, which ultimately may bring success to the product. This might be just as useful as investment money since it can bring potential investors and customers. Shark Tank is not only giving start-ups the potential to be great, rather it is allowing the mainstream of the start-up culture and bringing back innovation to the living room. People are watching the show have begun to think ‘Why not me?’ ‘Why didn’t I think about that?’ But not everyone that hopes in becoming successful can participate on Shark Tank.
Other than going to a TV show and presenting their idea, people can raise capital for their business in other ways. One way to begin collecting money for a start-up could be friends and family. Asking these people is a great way to begin fundraising for your business, but with any of your family or friends that do invest, you have to make sure that the terms are clear. Another investor that could be potentially found are angel investors. Angel investors give medium size investment capital with stake in the company. Angel investors work in groups and are entrepreneurs themselves. But if it is more money that you need, a venture capitalist is the way to go. Venture capitalists can give large sums of money for investments for a large stake in the company. But venture capitalists tend to have a focus on certain industries. If your start-up does not fall within the industry, they are not likely to invest in it.
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