I've read interviews before where it was indicated they know nothing (and want to know nothing) until they walk through the doors to make their pitch. The extensive due diligence is done after the show, which is why deals struck on the show often fall through later on. For example, some of the companies that pitch indicate that they have patents, but of course the validity and defensibility of such patents is something that has to be researched, not something you can take their word for. So on the show they're like, "Do you have a patent?" and they reply, "Yes (or no)" and that's the end of that line of questioning because it has to be researched independently.
The reason they seem to get to the crux of the issues so quickly, is because like most reality shows, it is heavily edited. A five or ten minute segment on the show reflects sometimes hours of questioning and discussion. From what I understand they have VERY long days (much longer than 8 hours, more like 12-14 hours a day) so it's almost an endurance thing for the sharks, because they spend so much time fleshing out the issues (and why wouldn't they since they're investing real money).
Personally I love the show also. Also check out Dragon's Den, which has both a Canadian and a British version (same format though, 5 investors all competing), and more recently CNBC's show The Profit where Marcus Lemonis (who was on the Secret Millionaire) by himself goes to failing businesses and invests a hundred K or two and takes over management for a week to turn things around.
I love this new era of entrepreneurship-themed TV, beats the hell out of Survivor or Lost. =)
Have always seen Dragon's Den but didn't pay it much attention for the same reason. I may just revisit it now, based on your recommendation. Thanks :)
The patent move always had me scratching my head - how they could just take their word for it and move on so quickly. Never understood it, but now it makes sense.
I'm sure there is always due diligence since the people pitching can always lie about purchase orders and the like. Sometimes a shark will even explicitly mention that the deal is contingent on something else coming through.
I've watched both and for some reason I find Shark Tank much better. I'm not sure if it's production or just that spark for reality TV that seems to be perfected in America. The personalities of the sharks probably has something to do with it, or the mix since both Robert and Kevin are also on Dragon's Den.
I've seen all three shows extensively and actually prefer the BBC show the most. IMHO, the BBC one is the most serious version and even though you have to get your head around some of the UK-specific stuff at first, you'll learn a lot from the show. Canada's Dragons Den and, even worse, Shark Tank, are more heavy on the drama and personalities, so there's more flash, but less substance.
Also, Peter Jones on BBC Dragon's Den strikes me as an incredibly intelligent investor.
"and more recently CNBC's show The Profit where Marcus Lemonis"
A great show. I did business with Marcus before he was on the show. Then I saw the show (had literally forgotten who he was) and got an idea and did more business with him.
His negotiating style is to go in at or very close to his final position and then walk. He did that both times. Funny thing was he probably overpaid using that strategy.
Having been on the Canadian Dragons' Den[1] to pitch my game Rejection Therapy[2], I can verify a lot of what you said.
To add: the narrative and chronology of the exchange between contestant and the Dragons is sometimes manipulated, either to spice up the drama (let's face it, some contestants are boring) or create a more logical sequence of events or questioning.
That said, there was lots of drama before and during my pitch. I had my ass kicked.
The extensive due diligence is done after the show, which is why deals struck on the show often fall through later on.
Another reason is that many of those doing pitches don't actually want a deal, but instead simply want the exposure provided by the platform (which, I presume, is how the show managed to get that ridiculous equity clause in). Getting a "deal" is useful in that it makes it more likely that you'll make the cut and actually appear in an episode.
Dragons Den did a follow-up show where they talked about the majority of deals falling through afterwards for various reasons, among them that the pitchers had a change of heart.
The reason they seem to get to the crux of the issues so quickly, is because like most reality shows, it is heavily edited. A five or ten minute segment on the show reflects sometimes hours of questioning and discussion. From what I understand they have VERY long days (much longer than 8 hours, more like 12-14 hours a day) so it's almost an endurance thing for the sharks, because they spend so much time fleshing out the issues (and why wouldn't they since they're investing real money).
Personally I love the show also. Also check out Dragon's Den, which has both a Canadian and a British version (same format though, 5 investors all competing), and more recently CNBC's show The Profit where Marcus Lemonis (who was on the Secret Millionaire) by himself goes to failing businesses and invests a hundred K or two and takes over management for a week to turn things around.
I love this new era of entrepreneurship-themed TV, beats the hell out of Survivor or Lost. =)