Here is a video of these guys arguing. I got to find the one with Kevin offering the 5% royalties though. Make sure you watch it through 15 mins to figure it out. <object style="height: 344px; width: 425px"><param name="movie" value="http://www.youtube.com/v/SOSfMzwA5C0"><param name="allowFullScreen" value="true"><param name="allowScriptAccess" value="always"><embed src="http://www.youtube.com/v/SOSfMzwA5C0" type="application/x-shockwave-flash" allowfullscreen="true" allowScriptAccess="always" width="425" height="344"></object>
This show seems to be as serious as American Inventor is. These VCs seem borderline clueless. This notehall concept is decades old and every major campus has the same exact model being run on campus. One of the key issues is that professors hate that stuff and often mix up the lectures so the notes have to be current. I do think Notehall.com is a decent business and should do ok though but these are obvious issues which should have been brought up. Regardless, it's all just TV. Check Notehall websites, noone from that show actually invested with them as they would have been listed as a board member. Either the show is just TV and nothing more or the notehall guys simply wanted promotion and had no intention of taking in investment from those supposed VCs. I mean really, $90k? With a business in their phase, they could have gotten that from friends & family.
On the Canadian version of the show they check in on the entrepreneurs after a while, and most of them did not go through with the funding. The show isn't an actual VC fund, they only care about the dog and pony show. The "contestants" use their appearance on the show to raise money elsewhere.
I don't think any of them went through with the funding. The show is just promotion for the entrepreneurs.
Wrong. Some do go through with the funding, although alternative terms are often worked out after the show. As a previous poster mentioned, they do periodic follow-ups and some of the Dragons' deals have gone through and made money for them. The show is indeed more about promotion for the entrepreneurs, but sometimes the deals go through and are legit business ventures.
I've looked through some episodes and checked out the companies which made deals. I have not found one where the supposed investor from the show is listed on the Board or Management team. An angel/VC is always listed as a Board Member or Team Member. One of the questions always asked beyond the initial capital funding round is "who are you investors?". Often, it is not even your business or idea that sells you, it is who is invested in you. Which would explain how a lot of truly idiotic start-ups ever made it past the first year.
Speed Over Greed I worked in the Silicon Valley during the internet boom, and this was the mantra. A start-up is the highest of risk, highest of reward opportunity out there, aside from illegal drugs. The goal is to knock one out of the park in very short timeframe, not assure yourself a modest and steady income. Go out and get a deal, any deal as soon as possible for your first go. Work like hell to make it a success. Make sure your investors get out with a profit while the getting is good. Ideas are a dime a dozen. Having spoken with a few VC's and the company founders they sponsored, finding someone who can execute is key. An average VC will have 1000 actual real and true viable ideas that are in the biz plan phase for every 1 that they fund. And they fund it because of management. Once you have a track record (and one will do just fine) of a massive success, VC's will throw money at your next venture and you will have no problem at all dictating your terms.