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.