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Are Shark Tank TV Investment Offers Binding?

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We’d previously discussed whether reality TV show Shark Tank which has entrepreneurs pitching angel investors was a realistic depiction of how venture capitalist and angel investor interactions occur in real life (Is Shark Tank TV realistic?).  We’d highlighted the fact that Shark Tank investors make decisions much quicker than investors in real life, but we did fail to mention that even though they make decisions quickly on the show, the offers are not binding it seems until due diligence occurs.  Investing any amount of money with no due diligence would be foolish on the part of an investor no matter how wealthy as they need to understand your company and verify the veracity of your claims (patents, revenues, number of customers, etc).

And from an entrepreneurs perspective, a deal is not done until the ink dries on the papers both in real life and on the Shark Tank.  It appears that ModMom, a furniture company, which appeared on Shark Tank and received an investment offer from Robert Herjavec actually went onto raise money from other angel investors based on this blog post they’d written.  So while we don’t understand the intricacies and conditions of investment offers on the Shark Tank, it appears that just like in real life, an investment is not made until the due diligence is done, deal terms are agreed upon and both the entrepreneur and investor aka Shark sign on the proverbial dotted line.

If you’re an entrepreneur like the folks on Shark Tank looking for angel investment or venture capital funding for your business, check out our free Funding Recommendation Engine.  Get an invite by just entering your email here.

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2 Responses to “Are Shark Tank TV Investment Offers Binding?”

  1. Warning: Illegal string offset 'keywords_time' in /home/chubbybrain/public_html/blog/wp-content/plugins/internal_link_building.php_/internal_link_building.php on line 103

    [...] Tank.  We’ve discussed whether Shark Tank’s TV pitch-fest is realistic and whether offers by the Sharks are binding, but now we’ve started analyzing Shark Tank’s investment results and actual offers by [...]

  2. Ben Wolff says:

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    I tried to get an invite by clicking on the link above but when I put in my website as I got a response saying: Please Enter URL. So my guess is you’re link isn’t working properly. I would like to be invited to use the Funding Recommendation Engine so if you could send me an invite at [email protected] I would appreciate it. Thanks.

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