In a recent interview, Aman Gupta, the co-founder of boAt and a prominent judge on the reality show Shark Tank India, emphasized the significance of due diligence in the process of funding startups. Addressing the controversy surrounding allegations of delayed funding even after deals are struck on the show, Gupta firmly asserted that thorough procedures and checks would always be adhered to before actual funding is provided.
The business reality show Shark Tank has gained immense popularity for its compelling format, where aspiring entrepreneurs pitch their business ideas to a panel of wealthy investors, also known as “sharks.” The investors have the opportunity to invest in the presented businesses and, in return, obtain a stake in the company. The show has not only provided countless opportunities for innovative startups but has also given viewers a glimpse into the real-world challenges of securing funding and building successful businesses.
However, in recent times, there have been allegations of delayed funding for startups that successfully secured deals on the show. Gupta’s remarks come as a response to these controversies, as he seeks to clarify the expectations surrounding startup funding. He stressed that the notion of quick and easy money is a misconception that needs to be debunked.
“It is important for people to understand that there will not be quick money,” Gupta said. He further explained that the funding process involves rigorous evaluations, meticulous assessments, and comprehensive due diligence. The investors on Shark Tank India, like any prudent businessperson, take their responsibility seriously and conduct thorough research before committing capital to a venture. This practice ensures that the risks associated with funding are minimized and the potential for long-term success is maximized.
While the portrayal of deal closures may seem instantaneous on television, Gupta emphasized that behind the scenes, a much more extensive process takes place. The due diligence process entails examining various aspects of the business, including its financials, market potential, competitive landscape, intellectual property, and the team behind the startup. It is crucial to delve into the company’s operations to determine if the business model is sustainable and scalable.
“Proper procedures and checks will be followed before actual funding,” Gupta reaffirmed. This sentiment underscores the responsibility and accountability that investors have towards the entrepreneurs they choose to invest in. As the startup ecosystem continues to grow and evolve, investors have realized the need for stringent diligence to protect their investments and contribute to the overall success of the startup community.
Gupta’s remarks also serve as an educational message to aspiring entrepreneurs who may be enticed by the glamorous image of instant success presented by the media. Building a successful business requires much more than just securing funding from investors. It necessitates dedication, hard work, adaptability, and a robust business plan that withstands the scrutiny of seasoned investors.
The co-founder of boAt encourages budding entrepreneurs to approach funding with a long-term perspective and realistic expectations. By understanding the intricacies of the funding process and acknowledging that it is not a shortcut to wealth, entrepreneurs can better prepare themselves for the challenges and opportunities that lie ahead.
The popularity of Shark Tank India has undoubtedly inspired a new generation of entrepreneurs to pursue their dreams, but Gupta’s statement reminds them that success is not an overnight phenomenon. It requires perseverance, resilience, and the ability to navigate the complexities of the business world.
Aman Gupta’s assertion on the importance of due diligence in startup funding serves as a crucial reminder to both entrepreneurs and investors alike. The funding process is a carefully structured procedure aimed at fostering the growth of innovative startups while safeguarding the interests of investors. By dispelling the notion of quick money and highlighting the significance of proper checks, Gupta reiterates the need for transparency and accountability in the startup ecosystem. As the entrepreneurial landscape continues to evolve, these principles will undoubtedly play a pivotal role in nurturing the next wave of successful startups in India.