Shark Tank Bangladesh: Can this be a game-changer for local startups?

The popular television series 'Shark Tank', known for its presence in more than 40 countries, is set to launch a localised edition in Bangladesh. The show has already helped the startup scene in various countries, including the United States, Australia, Russia, and India. With all its impact, how will the business-oriented reality show fare in this country? Let's take a look at how Shark Tank can potentially be a game-changer for local startups.

Addressing the gaps in the local startup scene

The format of Shark Tank is simple yet effective: entrepreneurs present their innovative business ideas and products to a panel of experienced investors, referred to as 'sharks'. These investors then have the opportunity to invest their capital in exchange for equity in the business, providing not only financial backing but invaluable mentorship, guidance, and access to networks. 

As the show prepares for its first season in Bangladesh, there are speculations on whether it will be able to leave a transformational impact on our local startup scene. In the past few years, the startup industry has witnessed noticeable growth, marked by an increase in investments, and efforts towards strengthening startup policies. However, despite all these measures, funding and access to capital are often one of the biggest obstacles for new startups in developing economies. 

"Introduction of Shark Tank in Bangladesh is a great step towards attracting investors globally and building the country's startup ecosystem. It has the potential to inspire the youth into entrepreneurship and empower their ideas. However, our budding entrepreneurs need to remember that reality shows are not always the reality and they should be confident about the true value of their startup ideas," shared Professor Sheikh Morshed Jahan, who teaches 'Entrepreneurship and Innovation' at Institute of Business Administration, Dhaka University.

Fostering innovation and economic growth

In this landscape, Shark Tank could provide a direct avenue to secure investment from experienced investors, potentially kickstarting the growth of many promising businesses. Moreover, these 'sharks' are not just investors; they are mentors with extensive business experience. Therefore, entrepreneurs who secure investments may gain access to invaluable advice and guidance from seasoned professionals.

In terms of a broader impact, the show sets a premise that may bring local startups into the national spotlight, showcasing the incredible talent and innovation that exists within the country. It could inspire aspiring entrepreneurs to turn their ideas into reality, knowing they have a platform to present them. These investments, if properly monitored, could catalyse several small and medium enterprises, enabling them to scale their operations, hire more employees, and invest in research and development. 

Catalysing innovation through local solutions

People following the international edition of the show already know how 'Shark Tank' promotes innovation and ingenuity, which are the driving forces for economic progress. By providing a platform for entrepreneurs to realise their groundbreaking ideas, this show could become a hot seat for innovation that addresses local challenges. This could further create solutions for global markets and elevate our reputation as a hub for change-enforcement. This localised approach to innovation holds the potential to revolutionise various sectors, from healthcare and education to agriculture and sustainable energy. 

This shift could also be crucial in terms of creating localised solutions for the problems faced by domestic consumers, at competitive pricing models. By nurturing a culture of entrepreneurial spirit and providing a platform for groundbreaking ideas, this show can unleash the untapped potential of our nation's innovators, propelling us towards a future of accelerated growth and prosperity.

Navigating the investment landscape and challenges

It is important to note that these speculations come with their own set of challenges. Emerging startups securing investments must ensure they use the capital wisely for sustainable growth. There is always a risk that some businesses may prioritise rapid expansion over long-term sustainability, thereby undermining the overall viability of the business. 

It would also be challenging to maintain transparency in the investment process, ensuring that the chosen startups receive the funding as promised. While investors often allocate funds in exchange for equity, the power dynamics should not deviate from the original essence of the startup.

"To instil the importance of scalability and market viability in the minds of our aspiring entrepreneurs, a collaborative effort among stakeholders is imperative. This collaborative endeavour should encompass universities, relevant government agencies, and market actors, pooling resources and expertise to cultivate a robust and sustainable startup ecosystem. Thus, by fostering a culture of collaboration and knowledge-sharing, stakeholders can collectively contribute to the development of a startup ecosystem that not only nurtures innovation but also equips entrepreneurs with the tools and insights necessary to navigate the complexities of scaling their ventures. In doing so, we can pave the way for a future generation of entrepreneurs who are not only attuned to the demands of the market but also empowered to drive lasting and meaningful change," shared Professor Jahan.

Capturing the success factor 

The show's ability to combine captivating stories, endearing characters, and the temptation of immediate achievement is what makes it so popular. The participants in the show frequently come from humble backgrounds and overcome hardships to follow their business goals. These motivational stories strike a chord with viewers because they appeal to our innate desire to see others overcome adversity. Moreover, the judges of the show are quite dynamic, which adds to the thrilling attraction. These judges give the pitches a sense of suspense as they embody the difficult world of venture capital.

However, at the end of the day, obtaining legitimate investment prospects that extend beyond discussions and pitches is frequently critical to the success of entrepreneurial endeavours. Tiger Cage, a local show with a similar premise that aired in 2018, offers a clear illustration of the consequences that may occur when investment prospects do not materialise. While the idea behind the show was to facilitate the connection between entrepreneurs and possible investors to create a thriving startup ecosystem, it lost momentum as it was unable to produce real investment transactions, despite the early excitement around it. 

"Startups need more than just funds. What Tiger's Cage showed was that, one, we needed more funds and, two, we needed quality interventions to help startups move ahead. There were encouraging conversations, but perhaps we were not ready at the time," shared Oli Ahad, CEO of the Dhaka-based AI enterprise company Intelligent Machines, who was a participant in the show at the time.

The failure of Tiger Cage also highlights how crucial it is to create genuine investment platforms that help in the expansion of startups. These platforms should place a high priority on an organised investment procedure that guarantees openness, effectiveness, and a direct route for business owners to obtain capital.