In the TV-Bschiss show “Lion’s Cave”

All eyes are on fire in the studio of the successful format of the private television channel 3+, “Die Höhle der Löwen”. Khawar Awan, 22, enters the hall where the so-called lions sit, in front of him five well-known investors. The young entrepreneur has three minutes. In front of the cameras, he has to persuade her to invest 80,000 francs in his venture. Awan is sweating and trembling with tension. But he presents his business idea – and it succeeds: all five are interested.

Awan picks his favorite – Lukas Speiser, CEO of online erotica retailer Amorana: “It can definitely give us a lot on the way.” It also took entrepreneurs Tobias Reichmuth and Bettina Hein on board. The three lions are very pleased. Awan is also smiling because he leaves the show as a winner.

What viewers at home on the screen have no idea: Awan won’t get a single penny, it’s not uncommon for agreed deals to fail later. The audience doesn’t know anything about it. In the opening scene, it is said that half of all the investments promised in the series remain empty promises. “Die Höhle der Löwen Schweiz” is part of the media world of CH Media TV. Joël Steiger, President of PR Entertainment disagrees: “There are fewer deals that don’t happen, after all.” He does not want to give exact figures.

“Lions” have the upper hand

The show is still a win for the “lions”. They are allowed to present themselves in front of the camera as generous and benevolent donors without any obligation. Outside the limelight, things are more difficult: Startups will withdraw the offer if they don’t follow investors’ lead.

Faced with this statement, CH Media’s Steiger flees: “All of our investors were already very interested in the start-up scene before working for 3+, and some lions had enthusiastically invested in start-ups before.”

For young entrepreneurs like Khawar Awan, this is no consolation. He grew up in modest conditions. His father was a bus driver and his mother was a nurse. Even as a young boy he was fascinated by fashion. He didn’t have much money, but while still in school, he had the idea to offer high-quality clothes in a low price segment. So he founded Finelli and set himself the goal of establishing the largest streetwear brand in Switzerland. The first collection he designed sells well. However, the brand urgently needs investments in order to continue to grow. Then the thought occurred to him: “I’m going to the Lion’s Den.”

obstacles upon obstacles

If there are several interested parties, one of the investors takes over the negotiations. In the case of Finelli, Lukas Speiser moderated the negotiations. When Awan’s account still hadn’t moved after a month and a half since the TV recordings, Amorana wrote to her boss on Instagram.

Instead of the CEO, his lawyer stepped forward. He assured her over the phone that 80,000 francs was a small investment and a clear deal. This does not require extensive testing. Awan’s hopes were high. He had already budgeted the amount needed for the next apparel production.

But then Speiser’s lawyer suddenly wanted to see all the documents. Instead of being in the “lion’s den”, Awan found himself in the hell of the paper tiger: accounting, annual accounts, lease agreements. Everything should be explained during the due diligence phase. Two more months passed before I first met Speiser. The startup founder was under increasing pressure. It took another month for all three investors to come together. At this point, the fate of Awan’s company depended entirely on new injections of cash.

But the lions created more obstacles. Now Awan must submit a co-founder. Young entrepreneur: “It is impossible to find a founding partner in such a short time. Every entrepreneur knows that.” At the time, Awan wasn’t even paying a salary: “It’s not easy to find someone who has experience in the textile industry and is willing to quit their job or finish their education.” Six months after the show was recorded, the bad news came: “They finally canceled me by email.”

When asked, Lukas Speiser confirmed that he was the leader in the Finelli case. However, his version of the progress of the negotiations is much shorter: “I had meetings and phone calls with Khawar to discuss the terms of the agreement.” According to Speiser, the investment failed as an agreement could not be reached on the distribution of the shares.

The contract is not binding

Awan declined to comment on the collaboration with the TV production company. Because public criticism is risky. CH Media may take legal action against offensive or defamatory statements by those involved. This is regulated by a commitment agreement made available to SonntagsBlick. Start-ups have to make many concessions in order to take part in the “Lion’s Den”. Among other things: “Producer [erwirbt] Exclusive and unlimited right to the entire outcome of the contributors’ performance in terms of time, space and content.» Start-ups receive no compensation, neither wages nor expenses are reimbursed. The producer of the program is free to decide whether the recording material will be used. It also says: “The producer has the right to remove the contributor from the project without giving any reason.” CH Media TV did not want to comment on the contract details.

Raphaell Schär took part in the program with his start-up MyFeld. He understands the producers’ position, but says, “This contract is difficult and discouraging.” A legal review, in which Schär reviewed the deal, concluded that start-ups had very few rights. “Also, months pass between recording and broadcasting.” A lot can happen at a start-up during this time. There’s also the due diligence phase: “It took us three months to transfer the money.”

According to Schär, a start-up should be aware of how the show is structured. Lions have no prior knowledge of start-ups. “If you apply to a business angel club, you submit all the documents in advance,” says Schär. This shortens the process. The young entrepreneur concludes: “‘Lion’s Den’ is a good choice if you want to get to know your startup company better and are looking for investors.” But you need to plan enough time because investments don’t happen right away.

«Today Finelli is the largest streetwear brand in Switzerland»

CH Media tells a different story. In a statement it says: “Just as with pitches outside of our TV start-up show, it’s normal for arguments that follow (…) to come up with reasons opposing cooperation between lions and start-ups.” He also emphasizes that it offers an “important platform” to them.

Start-up founder Awan says the 3+ range has gotten him very little. He can reach 1.2 million people with a post he made on Tiktok. He didn’t give up after the definitive refusal and presented his fashion vision to 45 investors until he found two investors.

“Today Finelli is the largest streetwear brand in Switzerland,” he proudly says. He advises other start-ups to learn more about lions. And if the deal fails: don’t give up! Awan is the best example. Today there is a pop-up shop in Lucerne and on the Bahnhofplatz in Zurich.

His dream came true; despite everything.