Example of the successful seed funding after Shark Tank Gameshow
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Shark Tank Vietnam is not Shark Tank Vietnam - 1 TV Show is no longer strange to the audience and especially to the startup world. Most of the startups that go on the fundraising program are companies in the seed funding stage.
As previously indicated, firms that have received seed funding require not just funding but also mentorship from those regarded as the program's sharks.
Let's review with FinFan the success of the deals after the program.
- Luxstay
Known as an Airbnb of Vietnam in the first stage of establishment. Shark Dung had invested in Luxstay from the pre-seed stage onward.
When Luxstay’s founder obtained strong backing from this shark in the deal to devour the remaining 3 sharks on the show, he entered Shark Tank like a tiger with greater wings.
With a commitment to invest 6 million USD from the remaining 3 sharks, Lien, Hung, and Viet, Luxstay is arguably the most successful deal of Shark Tank.
Following its success on television, Luxstay received significant media attention after the investment of the well-known celebrity singer Son Tung MTP.
However, the tourism industry's downturn was accompanied by the entrance of COVID-19. Despite the great expectations of investors for this startup, Luxstay is no longer stable in the market.
Luxstay presents numerous intriguing lessons for investors in a firm after the seed stage while leaving the market. After the lucrative investment, no other sharks (except shark Dzung) helped Luxstay survive the challenging time. Thus, although being greatly admired, Luxstay nevertheless ended up failing.
- Hoa Nang Organic Rice
Up till Shark Tank is over, Hoa Nang can be considered a successful transaction. Invested by shark Louis Nguyen, a shark who is very interested in Vietnamese agricultural products.
Although it wasn't the first or highest value deal of the program, Hoa Nang's achievement after it is still quite commendable.
With what Hoa Nang startup has shown in the past 2 years of Covid, it has once again proven the right investment of Shark Louis Nguyen.
With the appearance of Beacon Fund, from now on, this 'shark' is no longer alone on the way to supporting Hoa Nang to become the leading organic rice producer in the market.
What's more intriguing is that the Beacon Fund agreed to provide this firm funding after just two months of negotiations, despite the fact that it solely operates online. Simply because Hoa Nang meets all the criteria established by Beacon Fund—having many female clients, working in the agriculture sector, experiencing stable development, generating a positive cash flow, etc.
This is also a good example that the mentoring of a mentor after the seed funding phase is very important in the development of a startup business.
- Green Joy Straw
Considered the shortest deal in the history of Shark Tank when only 2 minutes to talk about the project, shark Binh closed the deal right away with this startup. Then, Shark Binh and Shark Lien engaged in a tough fight for the opportunity to invest in this startup.
GreenJoy specializes in providing biodegradable and compostable straws and utensils from Lepironia natural grass. GreenJoy works with more than 50 farmers, 7 university laboratories, and many NGOs and government agencies serving the environment. The company has sold more than 30 million straws in Vietnam and other countries around the world.
GreenJoy has once again created a name for itself in the startup sector after securing funding from shark Lien. The company won the Champion title of the sixth season of VietChallenge 2021 and a cash prize of USD 15,000 as a result.
However, after Shark Tank, it was found that shark Lien did not pay too much attention to this project as promised. She does not support this startup in orientation as well as further product development.
Fortunately for this startup, they have a bank-experienced founder, so all the management and use of capital is planned in detail and does not fall into the trap of burning money like many other startups.