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boAt Co-founder and Shark Tank Judge Stresses Due Diligence in Startup Funding Process

• ByStartupStory     |    July 19, 2023

Aman Gupta, co-founder of boAt and judge on Shark Tank India, has stressed the importance of due diligence in funding startups, dispelling misconceptions about quick and easy money. He emphasized that proper checks and procedures will be followed before actual funding takes place.

Speaking in an interview with PTI, Gupta clarified that funding startups is not a process of quick money, and investors, including himself and other ‘sharks,’ have earned their wealth through hard work and determination. He asserted that due diligence is an essential step in the funding process, and no money will be given without thorough examination.

Shark Tank India has played a significant role in promoting entrepreneurship and startups in the country, with families now gathering to watch the show and engage in conversations about business ventures.

Addressing allegations of delayed investments and unfulfilled commitments made on the show, Gupta explained that funding a company involves a meticulous process that takes time. He cited boAt’s first capital raise as an example, where the talks began in 2016, but the funding was secured in 2018.

Gupta highlighted the significance of the due diligence process, which involves assessing governance aspects and ensuring the accuracy of information provided by the founders. The goal is to prevent investments in fraudulent ventures and safeguard the interests of investors.

“In one hour, no one gets a cheque. There is a due diligence process and when we fund companies…there are companies which are not even formed…Governance aspects have to be checked…whether whatever the founder said on the show is right or wrong…we also don’t want to invest in a company where we find later that the founder is a fraud,” he said. Gupta said he is glad that the misconceptions are being cleared before the show’s next season. “It is good that this has happened because now Season 3 is starting…I start shooting next month…it is good that people understand that they will not get immediate money boss due diligence will happen,” Gupta said.

 

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