“If I handed you ₦40 million right now, could you turn this into a ₦2 billion business in three years? I don’t think so, and I won’t be investing.” These sharp words from a seasoned investor marked the end of one entrepreneur’s pitch on a reality TV show designed to fund promising business ideas. The setup is alluring: founders present their ventures to a panel of successful investors, who decide whether to commit capital. In a country where access to funding is notoriously difficult, such opportunities hold significant appeal.But while the show offers thrilling moments for viewers, the journey for participants is rarely as smooth as it appears. The cameras may capture dramatic rejections or triumphant offers, but what happens off-screen often tells a different story—one of lengthy negotiations, unmet expectations, and the sobering realities of startup funding.
The Hurdles Beyond the Pitch
For entrepreneurs like Ugochukwu, founder of the edtech startup 9jaCodeKids, walking away from a televised promise of $350,000 was a painful decision. After securing an offer from a prominent investor during the show, Ugochukwu anticipated a quick process. But eight months later, delays and silence prompted him to withdraw from negotiations. “We were told the deal would close in three weeks,” he explained, “but the prolonged back-and-forth became unbearable.”Similarly, Haji Susan, founder of the payment app 247Cash, received a ₦60 million ($130,000) investment offer contingent on hitting certain milestones. Yet, nearly a year after the show, the deal was rescinded, citing insufficient traction. Susan faced not just financial loss but reputational damage, as friends and partners assumed her business had already been injected with millions.
The Fine Print of Reality TV Deals
Participants sign agreements acknowledging that on-air offers are subject to further due diligence—a process that can be long, tedious, and, at times, inconclusive. Investors argue this is standard practice, as the brief pitches on television are insufficient for making informed decisions.”Due diligence is critical,” one investor explained. “We’re not just funding ideas; we’re investing in founders and their ability to execute. If the data or plans don’t align with the pitch, we can choose to walk away.”
The Reality of Investment Terms
For first-time founders, navigating this complex process can be daunting. Deals often involve conditions like convertible notes or equity restructuring, which require legal and financial expertise. Miscommunication, unmet expectations, and shifting terms can further complicate the process.In Susan’s case, she claims changes to her proposed budget and repeated delays eroded trust. “They kept asking for adjustments, reducing key items like marketing tools and staff salaries, making it impossible to scale effectively,” she said.However, investors counter that not all businesses are ready for funding. “Some startups lack demonstrable traction or viable growth strategies,” one investor explained. “We’ve seen pitches where products couldn’t even be showcased properly during follow-up meetings.”
What Entrepreneurs Can Learn
While the show dramatizes the highs and lows of fundraising, the biggest takeaway for participants is the importance of preparation. Founders must understand that funding offers are not guarantees and that due diligence can reveal critical gaps in their business models.
Experts suggest startups focus on:
1. Clarity of Vision: Clearly outline how the funds will be used and the expected outcomes.
2. Demonstrating Traction: Show evidence of growth or a clear path to profitability.
3. Understanding Terms: Seek legal advice to navigate contracts and protect equity.
For the audience, the reality of startup investing may lack the appeal of fast-paced television drama. Yet for participants, the fine print and the hard work that follows the pitch are what truly determine their success.The glittering promise of televised funding may draw founders to the spotlight, but only those who master the gritty realities of business will succeed once the cameras stop rolling.
