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I've been on a SharkTank binge just for fun, and one thing I notice is, every time a Silicon Valley company goes to pitch, the idea has some pretty bad problems
by fallat 7y ago
I've been on a SharkTank binge just for fun, and one thing I notice is, every time a Silicon Valley company goes to pitch, the idea has some pretty bad problems:
1. The margin is high but the idea is easily copied
2. A ton of money has already been invested, and still not making money
3. Other things I can't remember at this moment
I think SV has some sort of problem when it comes to starting businesses. Rarely something is organically growing. It's like SV people just throw money at a wall until something sticks, so it explains the thousands of failure companies.
Seeing SV companies through the eyes of an investor, I'd be ultra cautious. Companies and ideas are a dime a dozen there from what I see. Until you find out each has had +$100,000 pumped into it various ways and operating at a loss. It's almost like they want to force you to think the idea is good because "look, it's existed for X years!".
- Retric 7y agoThe go big or go home mindset is useful for specific kinds of investors. If you have 100+ million your not going to notice the returns if you’re a partner at a modestly successful restaurant. Yes the odds are terrible that you happen to fund the next Google. But, the allure is the same thing that gets people to play the lottery even with negative expected returns.
- askafriend 7y agoYou shouldn’t be using SharkTank to form your view on Silicon Valley... Some of the worst companies get on there, SV or not. Think about it, why would a good company need to go on Shark Tank? They can raise from much better investors if it was a good company.
- sokoloff 7y agoSome small number seem to appear on SharkTank primarily for the free TV exposure. That seems a viable strategic move.
- fallat 7y agoI'm not using solely SharkTank...Sorry if I gave the wrong impression. Yes I completely agree with everything you're saying. ST definitely attracts certain kinds of companies with monetary needs.