Am I the last person to watch ABC's Shark Tank?

Thankfully I have better things to do on a Friday night, so through the miracle of TiVo and a rainy Martin Luther King Day, I waded through Episode 106. The popular appeal is easy to see, especially in this episode which was food oriented. I don't know many angel investors interested in food start-ups, the margins are poor.

What struck me was the small amounts the entrepreneurs were asking. What can even the best of them accomplish with $40, 50 or even $150K? Based on the 30+ early stage investments I've made I can tell you: very little. Which means they'll be back for more money, which will be more expensive, if they can get it, because the story won't be so glamorous the next time.

I was also surprised at how several of the investor bids were grabs for most or all of the equity. They'd be shooting themselves in the foot if the entrepreneur accepted these greedy terms, because without sufficient incentive for the entrepreneur, all that hard work without a substantial piece of the upside would eventually cause the entrepreneur's spouse to convince them to drop the whole thing. I'm surprised the investors made these brazen grabs for the whole deal; maybe it's just to add drama for the TV audience. No one at Tech Coast Angels would make such an offer.

It reminds me of the advice Palomar Ventures' Randy Lunn offered once, "never take advantage of an entrepreneur". Not as exciting on TV perhaps, but words to live by if you're a angel investor.