In 2021, Sony Entertainment Television bought rights of the series Shark Tank’ from Emmy-winning ABC with a view to start its own version ‘Shark Tank India’. The show first aired on television on 16th December 2021 and ran on weekdays from 9pm to 10 pm on Sony TV. The format of the show was that a growing startup organization/entrepreneur get to pitch their ideas for funding in front of a panel of angel investors called ‘Sharks’ who happen to be few among well-known personalities in the business world. In a very short time since its release, Shark Tank India has been popular among the Indian masses, especially within the aspirational, hard-working masses that have a vision and stake in India’s future. Also, the stories of various entrepreneurs or participants in the series were fascinating and such business ideas from Indian start-ups took centre stage to carve out their identity through entrepreneurial zeal.
Legal Aspects:
Although the series is about pitching your business ideas before the panel of investors there are various aspects associated to the same such as legal paperwork in respect of the deals, due diligence of the business of the entrepreneur participants, their business structure, business formation in respect of few start-ups, etc.
As all the offers that get admitted are mostly investment deals that close in return of which the entrepreneurs are required to provide a certain agreed percentage of the equity to the investors in their business who invest agreed amount in the business which further would lead to contract drafting by the legal team of the investors in accordance and signing formalities, restructuring the business in few cases and amending such term-sheets in accordance of the same, formation of completely new companies with Registrar of Companies in respect of few pitchers who just came up with a concept and an unregistered prototype as well as registration of patents in such few cases. The deliberate loan agreements would take place in respect of the deals wherein part amount may be given to pitchers as loan by any of the investors with a certain interest rate at which the amount is to be returned in some fixed tenure. Also in respect of all the deals, due diligence in respect of the business of such entrepreneurial pitchers will be conducted either by the makers of the series or further if required even by the investors including due diligence of the research and development mechanisms of certain pitchers if required in respect of any conditional deals. Thus, business investments always involve such paperwork as all deals/offers that get finalized are agreements/contracts.
Policymaking
Such business reality shows getting introduced in India are somewhere also a result of a change in policymaking in respect of ease-of-doing-business over the past few years by the governing authorities. On a policy level, in the past few years, inventive schemes for new businesses were laid out in co-operation with individual ministries or other regulatory bodies such as Startup India initiative, NITI Aayog, MSME schemes. Mudra loan schemes, Annapurna Scheme, etc. as well as promoting crowd-funding platforms. Since then, a new generation of ‘wealth-creators’ has got a boost and several start-up ventures have come into the limelight and several Indian start-up ventures have been introduced few of which have achieved the status of a unicorn.
Other aspects of such television series:
The presentation and format of the series have also educated viewers to understand concepts like equity share, B2B and B2C markets, target audience, margin, revenue and pre-revenue and various other business terms and concepts in a simplified manner as and when required in the episode camera zooms towards such investor who explains that particular concept in brief. The series has enabled the audience to see how a presentation is made, distribution of the product is explained and deals are cracked also making common masses aware of how ideas in respect of solutions of daily life issues can be materialized through business, how networking empowers community building and the inventive solutions startups are built to solve problems of the society. Not only the success stories of pitchers but the viewers have been hooked by seeing the journey of promising and determined business ventures of Indian origin taking shape.
Conclusion:
The success of the series is an indicator of the start-up wave giving rise to jobs producing culture in India where dreams have begun to take shape into reality owing to consistent efforts of entrepreneurial minds of India shaping new ideas for the nation and catering to the society as a whole.
Written by: Vaidehi Harshad Samant
LAWBEES 