Heading into the Shark Tank
Entering the popular TV show, Shark Tank, an entrepreneur is seeking an investment for their product or service in return for equity in their company. Last week, a talented entrepreneur entered the Shark Tank, seeking an initial investment of $90000 in return for 5% of his company. He entered with a product called Platetopper, with its main goal to securely acts as a plate topper using suctioning techniques. His product got the interest of the sharks, with two of the sharks offering $1,000,000 for 25% equity in the company, allowing his company to have a valuation of $4,000,000. However, after hearing these offers, he readjust his adjusted value to $750,000 for 5% equity, initiating a value of $15 million for his company. His arrogance annoyed the sharks, causing them to opt out of the business.
In my opinion, a successful entrepreneur has to be smart. To avoid similar problems, that entrepreneur should not have been too greedy and accept the offers that he could have gotten. By pushing away offers and being arrogant, he lost all the offers that he could have gotten. Even though an entrepreneur should take risks, they need to know when it is a good time to halt those risks and be satisfied with their earnings.
Reference : http://www.examiner.com/article/san-francisco-inventor-of-platetopper-scoops-up-shark-tank-funding