In recent times, we have watched several business reality television series like Dragon's Den, Sharks' Tank, Money Tigers and many other such presentations adding on to the available offline investor pitch events. Aspiring entrepreneurs pitch their business models to a panel of investors and persuade them to invest money in their idea. The investors use several valuation techniques to debunk or concur with the owner's valuation and decide whether to grant them funding in return for an ownership stake.
The budding entrepreneurs get a fixed amount of time to primarily pitch their business ideas to the in-panel multi-millionaires who are willing to invest their own cash, time, and expertise to kick-start the business or at times t help scale-up the business in terms of geography, expertise, technology, and help the entrepreneur with their business knowledge, market dynamics etc. After the pitch, the investors have the opportunity to ask questions about the venture. The entrepreneurs do not always have to answer or elaborate, but of course, what they choose not to address could very well affect the outcome. The pitch is over when each of the investors have either declared themselves out for further deliberation, or when the entrepreneur secures the full investment that they are asking for.
There are rare occurrences, when the entrepreneur(s) receive multiple competitive offers and deals either individually or collaborated by a few investors. Here the entrepreneur faces a dilemma for which he must think on his/her feet and conclude a response to - How to go about it? Who to collaborate with? Which offer to accept?
The entrepreneur must now choose and pick an offer or investor by analyzing the take-aways and let goes. How does s/he decide?
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