O MAIOR ESCÂNDALO DO SHARK TANK

Summary

The script discusses the Eletropay scandal on the Shark Tank show, where the company sought a record-breaking investment of 3.2 million reais for a cryptocurrency payment device. Despite securing a deal with Camila Farani, the company faced a reputation crisis due to allegations against a co-founder's other business, 3xbit, leading to the deal's collapse. The incident raised questions about the show's vetting process.

Takeaways

• 💡 Electropay was a revolutionary electronic payment business via cryptocurrencies that pitched on the Brazilian version of 'Shark Tank'.
• 💸 The founders of Electropay asked for a record-breaking investment of 3.2 million reais for 10% of the company, valuing the business at over 30 million reais without any real profits.
• 🛠️ Electropay's product was a point-of-sale device that accepted over 200 cryptocurrencies, including Bitcoin, as a form of payment.
• 🤝 Despite the high valuation, the company managed to secure a deal with two of the 'Sharks', Camila Farani and Apolinário, who offered the investment for 20% equity after cutting the valuation in half.
• 🚫 After the episode aired, a scandal involving one of Electropay's founders and his other company, 3xbit, a cryptocurrency broker, surfaced, damaging the reputation of the show.
• 📉 The scandal involved accusations of 3xbit not paying its customers and possibly being involved in fraudulent activities, which led to a court order to freeze its Bitcoin assets.
• 🔍 The due diligence process post-show revealed issues with Electropay, leading to the deal not being finalized with Camila Farani.
• 📢 Both Electropay and Camila Farani defended themselves publicly, with Electropay stating that 3xbit was an independent company and that the deal with Farani was not closed due to bureaucratic hurdles.
• 🛑 The incident cast a shadow over 'Shark Tank', raising questions about the vetting process for companies participating in the show.
• 🔄 The aftermath saw Electropay and 3xbit distancing themselves from each other, with Electropay claiming that they continued to operate independently.
• 📚 The story serves as a cautionary tale about the importance of thorough due diligence in investment deals and the potential pitfalls of cryptocurrency ventures.

Q & A

What was the investment request made by Eletropay to the Sharks on the show?

Eletropay requested an investment of 3.2 million reais for 10% of the company from the Sharks.

What was the innovative aspect of Eletropay's business proposition?

Eletropay proposed a revolutionary electronic payment device that accepted cryptocurrencies like Bitcoin and over 200 other digital currencies.

How did Eletropay's founders present the ease of using their payment device during the show?

They demonstrated the process by showing how to select a cryptocurrency, input a purchase amount in reais, scan a QR code with a mobile phone, and make the payment, including the receipt printing.

What was the valuation of Eletropay's business at the time of their pitch?

The founders of Eletropay valued their business at over 30 million reais despite not having any real profits yet.

Which Sharks made offers to invest in Eletropay after the pitch?

Camila Farani and Apolinário made offers to invest in Eletropay, eventually agreeing to invest 3.2 million reais for 20% of the company.

What was the controversy that arose after the Eletropay episode aired?

A scandal involving one of Eletropay's founders, Newber SaintClair, and his other company, 3xbit, a cryptocurrency broker, surfaced, affecting the reputation of the show.

What was the nature of the accusations against 3xbit and its implications for Eletropay?

3xbit was accused of not paying its customers and was under legal scrutiny, which cast doubt on the legitimacy of Eletropay's business model and its association with 3xbit.

How did Camila Farani respond to the controversy on social media?

Camila Farani responded on Twitter, stating that Eletropay did not pass the due diligence process and therefore the investment deal did not materialize.

What was Eletropay's defense regarding their association with 3xbit?

Eletropay clarified that 3xbit was an independent company, and their contract allowed for the use of the Eletropay brand and hardware in Brazil, emphasizing that the two companies were separate.

What was the outcome of the investment process between Eletropay and the Sharks after the controversy?

The investment deal did not go through as Eletropay did not pass the due diligence process, and Camila Farani did not proceed with the investment.

How did the scandal affect the reputation of the Shark Tank show?

The scandal tarnished the show's reputation, leading to questions about the vetting process for companies participating in the show and the Sharks' due diligence.