The Dragon’s Den on CBC is taking applications for startups who want to get funded on national TV.
It probably seems like an OK idea to begin with. You fill out an application, show up in front of some cameras and pitch your company to a bunch of high-end angel investors that you would never have a chance to pitch to otherwise.
In fact, for the startup community as a whole, The Dragon’s Den should be a good thing. It draws attention to the idea of starting your own business, makes it a little sexy and the show is balanced enough to show the failures along with the successes.
It really is good entertainment, I’ll be watching every episode this coming season. If they want to really up the entertainment value, they should make Sean Wise the host — he would be much better than Dianne Buckner. Not that I mind Dianne.
Would I take my startup on The Dragon’s Den? Not a chance in hell, and for a few reasons.
The first reason is that you are being lumped in with a swath of absolutely ridiculous businesses, why let yourself be tainted by the Bikini Weenie or that umpire guy.
The second reason is that you are giving up all control of the portrayal of your business. I don’t know about you, but when I go in to a “dragon’s den” to do a presentation, I take some comfort in knowing that I have control over how my business idea is communicated. By pitching on national television, you are letting an editor decide how your business should look, sound and feel. No deal!
The third, and biggest, reason I wouldn’t think of going on the Dragon’s Den is because there is absolutely no incentive for the “Dragon’s” to make a good deal with me or my startup. Why? Because they aren’t there to make good investments. Judging by the tiny size of their investments, my guess is that the CBC offers them indemnity from loss up to a certain amount (the investments can go bad, and the CBC will compensate them).
That may not be the case, but it doesn’t matter much anyway, because the real investment that the four investors are making is in themselves. If they lose 400k on investments on the show, that is still 400k well invested in raising their own national profile. The payoffs of being a TV star can, at times, be lucrative. Especially as these four behave a bit like their are thinking semi-retirement.
So, you won’t see me there, but I’ll be glued to the TV!
Great post Jevon…
I liken Dragon’s Den to going on a Blind Date. But on this date there are only two possible outcomes, you’re going to end up married to her (and maybe some of her friends) or you’re going to look like an idiot.
There’s very few businesses that could benefit from the nature of the Dragon’s investment/exposure. Ironically I think Jobloft.com was one of them as a few of the investors were in the right spaces for them but we all know where that ended up.
But as a non-retail oriented technology/software company… not a chance in hell.
Great post Jevon…
I liken Dragon’s Den to going on a Blind Date. But on this date there are only two possible outcomes, you’re going to end up married to her (and maybe some of her friends) or you’re going to look like an idiot.
There’s very few businesses that could benefit from the nature of the Dragon’s investment/exposure. Ironically I think Jobloft.com was one of them as a few of the investors were in the right spaces for them but we all know where that ended up.
But as a non-retail oriented technology/software company… not a chance in hell.
I second the motion on getting Sean Wise to host the show – he would be great! He was a very entertaining MC at the Toronto Venture Forum, obviously knowledgeable in the startup and venture capital space and a natural ringmaster for this circus.
I second the motion on getting Sean Wise to host the show – he would be great! He was a very entertaining MC at the Toronto Venture Forum, obviously knowledgeable in the startup and venture capital space and a natural ringmaster for this circus.
I agree; it’s great entertainment but not a real business strategy, unless you’re trying to become famous as “that guy who did that crazy thing on Dragon’s Den”.
I agree; it’s great entertainment but not a real business strategy, unless you’re trying to become famous as “that guy who did that crazy thing on Dragon’s Den”.
Great post, Jev. I think you’re seeing a movement in the startup world where it’s cheaper now to start a company than it was before, and VC’s are being challenged not just to fund smaller deals at riskier stages (or face extinction), but also they are forced to offer more than just money. (it’s a bit like the lending tree commercials – “when VC’s compete, you win!”)
Great great conversations on what makes an “Anti-VC” over here: http://www.watchmojo.com/web/blog/?p=1537
Great post, Jev. I think you’re seeing a movement in the startup world where it’s cheaper now to start a company than it was before, and VC’s are being challenged not just to fund smaller deals at riskier stages (or face extinction), but also they are forced to offer more than just money. (it’s a bit like the lending tree commercials – “when VC’s compete, you win!”)
Great great conversations on what makes an “Anti-VC” over here: http://www.watchmojo.com/web/blog/?p=1537
The sooner you accept that a blind date uncensored can be the most valuable tool in searching for your soul mate, the sooner your whole outlook on blind dates will take a positive turn u2013 and so will your ability to utilize them.
The sooner you accept that a blind date uncensored can be the most valuable tool in searching for your soul mate, the sooner your whole outlook on blind dates will take a positive turn – and so will your ability to utilize them.
Also, I don’t think the dragons really understand tech startups. Aside from Robert, the rest made their money in other industries. Remember when TeamBuy pitched? And Kevin wanted 51%? For 150k? That’s not tech startup funding. So I personally wouldn’t pitch my startup on Dragon’s Den because I’d get a lousy valuation. The only advantage would be that I’d get to be on TV :)
Also, I dont think the Dragons actually understand tech startups. Aside from Robert, they made their money in different industries. Remember when TeamBuy pitched? And Kevin was asking for 51% because he wanted ‘control’? And 51% for $150k? That’s not how you fund tech startups. I personally wouldn’t pitch my startup at Dragon’s Den because I’d probably get a really lousy valuation. However, if I wanted to be on National TV for everyone to hear about my idea, I think it’s a good medium for that. :)
Also, I dont think the Dragons actually understand tech startups. Aside from Robert, they made their money in different industries. Remember when TeamBuy pitched? And Kevin was asking for 51% because he wanted ‘control’? And 51% for $150k? That’s not how you fund tech startups. I personally wouldn’t pitch my startup at Dragon’s Den because I’d probably get a really lousy valuation. However, if I wanted to be on National TV for everyone to hear about my idea, I think it’s a good medium for that. :)