Lender lifts lid on Shark Tank pay-to-play
Amir Kassar says his MultiFunding is an easier way to raise cash for good ideas.
Lender lifts lid on Shark Tank pay-to-play
Joseph N. DiStefano
Amir Kassar, the ex-Advanta Corp. executive who runs online small-business loan-broker MultiFunding Corp. from an office up in Broad Axe, Montgomery County, created a minor stir this morning when he posted this item about ABC's popular Shark Tank fund-an-entrepreneur TV reality-type show.
Turns out that, for the chance to raise money from dot.com millionaire and Dallas Mavericks owner Mark Cuban and his fellow hosts, competitors can be asked to pledge 5% of their company or 2% of future operating profits. Bad deal, says Kassar; but then he would, he's in the competitive business of finding business-owners money (from lenders like Philly's Valley Green Bank) at today's low rates while keeping a profitable fee.
Perhaps one should watch the show before attempting to comment on it. It is not a "pay to play" scheme. The premise of the show is to pitch your business venture to the hosts in the hopes that one of the "Sharks" will support it. In return for their investment, they make a deal. This is not the "free money" show. They expect to either own a part of the business or to collect some of the profits. Where is the problem?— Getinline- Getinline,
You missed the point.
The article says that the show takes a future percentage of the a contestant's company JUST FOR APPEARING ON THE SHOW. It says for "the chance to raise money". This is in addition to any deal the person may make with the sharks where they may sell 20% of their firm for $200K. So if a contestant makes no deal with a shark, they may be liable to give 5% of their firm to the show just for appearing.
FYI, I watch the show every week.
— erdessy - What do you define as "profitable fee"? If you are in business and you charge a fee for service, is it not the idea of the fee to cover your expenses so you can make a profit? If your fee is too high then no one will use your services, if it is too low no one will use you because your service is perceived to be subpar. Now if you are one of the many indiviuals who work for someone else, do you not offer your services for a "profitable fee"?— junethe4th
