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Share Tank is also interesting because to even go on it, I believe you have to give 3% to the network no matter what the outcome of the show is, investment or n

Share Tank is also interesting because to even go on it, I believe you have to give 3% to the network no matter what the outcome of the show is, investment or no investment..

sharkweek 14y ago
Interesting -- found the source for that: http://a.abc.com/media/primetime/sharktank/SharkTank3OpenCallApplication.pdf http://a.abc.com/media/primetime/sharktank/SharkTank3OpenCal... "I further understand and acknowledge that I will be required to enter into further agreements with Finnmax LLC (“Producer”) relating to the business that I may present to the sharks for possible investment (my “Business”). Among other things, those agreements are currently anticipated to provide that as a condition of my participation on the Series, Producer, Sony Pictures Television Inc. and American Broadcasting Companies, Inc. (collectively the “Shark Tank Entities”) or their designee(s) will receive an irrevocable option (the “Option”), to do either of the following or neither, at their election and in their sole discretion: 1. Receive a 2% royalty of the operating profits of my Business or 2. Receive warrants that give the Shark Tank Entities or their designees a 5% equity interest in my Business. "
- rburhum 14y ago
  Wow. The producers are more sharks than the sharks themselves. This reminds me of those places where people pay to pitch. What a rip-off.
  - crikli 14y ago
    Oh, that's exactly what they're doing. Except rather than a one time fee, it's equity or revenue...forever. Even if you don't get a deal. F*ck. That.
  - niggler 14y ago
    "What a rip-off." The opportunity to showcase your product and have it seen by millions of potential customers and investors on national television may actually be worth far more than their take.
- ngoel36 14y ago
  If the entrepreneur got a choice between the two, the 2% royalty might be conceivably worth it in some cases. Letting Sony/ABC pick, however, means any deal you do on the show has an automatic minimum of 5% equity tacked onto the investment price. And that's pretty significant considering I've seen plenty of deals for as low as 0-10%.
- rdl 14y ago
  One option might be to go ahead and get on with a non scalable business in your ultimate market, using it as a way to build personal reputation and credibility. Shoot for a base hit and early exit (or failure) off the show, and then raise money in a year or two from the same caliber of investor but on better terms by going direct.

Share Tank is also interesting because to even go on it, I believe you have to give 3% to the network no matter what the outcome of the show is, investment or no investment..

sharkweek 14y ago

Interesting -- found the source for that: http://a.abc.com/media/primetime/sharktank/SharkTank3OpenCallApplication.pdf http://a.abc.com/media/primetime/sharktank/SharkTank3OpenCal... "I further understand and acknowledge that I will be required to enter into further agreements with Finnmax LLC (“Producer”) relating to the business that I may present to the sharks for possible investment (my “Business”). Among other things, those agreements are currently anticipated to provide that as a condition of my participation on the Series, Producer, Sony Pictures Television Inc. and American Broadcasting Companies, Inc. (collectively the “Shark Tank Entities”) or their designee(s) will receive an irrevocable option (the “Option”), to do either of the following or neither, at their election and in their sole discretion: 1. Receive a 2% royalty of the operating profits of my Business or 2. Receive warrants that give the Shark Tank Entities or their designees a 5% equity interest in my Business. "

rburhum 14y ago
Wow. The producers are more sharks than the sharks themselves. This reminds me of those places where people pay to pitch. What a rip-off.
- crikli 14y ago
  Oh, that's exactly what they're doing. Except rather than a one time fee, it's equity or revenue...forever. Even if you don't get a deal. F*ck. That.
- niggler 14y ago
  "What a rip-off." The opportunity to showcase your product and have it seen by millions of potential customers and investors on national television may actually be worth far more than their take.
ngoel36 14y ago
If the entrepreneur got a choice between the two, the 2% royalty might be conceivably worth it in some cases. Letting Sony/ABC pick, however, means any deal you do on the show has an automatic minimum of 5% equity tacked onto the investment price. And that's pretty significant considering I've seen plenty of deals for as low as 0-10%.
rdl 14y ago
One option might be to go ahead and get on with a non scalable business in your ultimate market, using it as a way to build personal reputation and credibility. Shoot for a base hit and early exit (or failure) off the show, and then raise money in a year or two from the same caliber of investor but on better terms by going direct.