Due diligence and checks are crucial components of investing in startups, according to Aman Gupta, a judge on Shark Tank India and co-founder of boAt, an audio electronics brand. Gupta addressed the controversy surrounding delayed funding on the show, emphasizing that proper procedures and checks will always be followed before actual funding is provided.
Gupta debunked the misconception that funding startups is easy money handed out by wealthy businessmen. He stressed that he and other sharks have earned their money through hard work and determination, and this diligence will be applied when considering investments. Gupta urged people to understand that funding takes time and that there is a due diligence process involved.
Addressing the charges of delayed investments and unfulfilled promises made on the show, Gupta clarified that funding is not delayed but rather follows a regular course that takes time. He used his own experience with boAt, explaining that capital raising discussions initiated in 2016 did not result in funding until 2018.
Due to the nature of investments, thorough checks are necessary to ensure governance aspects are in order and that the integrity of the founders is intact. Gupta highlighted the importance of verifying the accuracy of claims made by founders on the show to avoid investing in fraudulent companies.
Gupta welcomed the opportunity to clear up misconceptions before the start of Shark Tank India’s next season. He emphasized that due diligence is a vital part of the investment process and that immediate funding should not be expected. By setting proper expectations, Gupta aims to provide transparency and ensure a more informed understanding among entrepreneurs and viewers.
In conclusion, Gupta’s comments shed light on the importance of due diligence in funding startups and dispel misconceptions surrounding quick and easy money. The upcoming season of Shark Tank India will continue to follow the necessary procedures and checks to ensure that investments are made wisely.
