A funny thing happened to me during the 5th year of my 3rd start-up: I fired myself. The company continued on, but I walked away. Why? I could say that the company could no longer afford a CFO. (Sales had dipped during the recession, and I was working at half pay.) But that’s just an excuse.
Sadly, ABC’s “Shark Tank” is giving private equity investing a bad name. The “Sharks” are not the wise old investors they appear to be, but truly dangerous “Loan Sharks” that are out to eat entrepreneurs alive.
Comparing the show’s Sharks to real-world Angel Investors is, well, like comparing fish to fowl. Real “Angel Investors” are in it for the long-haul. They want to give an entrepreneur cash to grow the companies — and they stick around until the business is large enough to sell. The Sharks, however, are looking for short-term gains that threaten to ruin the very businesses they invest in.