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Dragons' Den digest - Week 8
Dragons' Den digest - Week 8
August 31, 2010
If you missed last week's, catch up here and below you will find the highlights of episode seven.
Quote of the Episode: "I think you are a product genius." Peter Jones
Idea 1
Product: Yum Yums – collectible series of books to encourage children to eat healthily.
Investment sought: £100,000 for 20 per cent equity.
Handling: The Dragons didn't look impressed with the dancing fruit that opened the pitch. The company had a good deal with Borders but it went into administration. Peter Jones was disappointed with the stories and the lessons they teach to young children and told them to go back to the drawing board with the whole product. Duncan Bannatyne noticed spelling/grammar errors in the books. Deborah Meaden encouraged them to sell what stock they have left and not to invest any more money.
Outcome: No investment.
Verdict: Lack of attention to detail in the books led to disappointment.
Idea 2
Product: Valuemystuffnow.com – online antique valuations.
Investment sought: £100,000 for 20 per cent equity.
Handling: Confident pitch but gave over-complicated answers to the Dragons' questions. Peter Jones questioned his figures, but Patrick answered confidently. After three of the Dragons declared themselves out, Theo Paphitis explained that he could see the potential of the buiness and thought that there would be further demand for his services. He offered £50,000 for 20 per cent equity and Deborah Meaden matched it.
Outcome: Patrick tried to negotiate down the equity but failed. He accepted their offer of £100,000 for 40 per cent equity.
Verdict: As James Caan said: "What a charming man."
Idea 3
Product: Odourbuster – toilet odour extractor system.
Investment sought: £75,000 for 15 per cent equity
Handling: Confident, well-rehearsed pitch. Duncan Bannatyne couldn't see a need for the product and claimed he'd never had any complaints about bad smelling toilets in his health clubs, hotels or spas. They changed their tack after this, although their original aim was to remove bad smells, the product also complies with building regulations and removes the need for extractor fans. They struggled to convince the Dragons that it was an investment on which they could make a return.
Outcome: No investment.
Verdict: A confident pitch but while the product met residential building regulations, it wouldn't work in cubicle rows in commercial premises without a solid wall.
Idea 4
Product: Power8 Workshop – cordless power tool set.
Investment sought: £150,000 for 5 per cent equity
Handling: Strong pitch and an interesting product demonstration. The Dragons were very impressed by his product design but the complicated share ownership structure led to three Dragons declaring that they were out. However, Peter Jones saw that the real value was in the inventor and the products.
Outcome: Christopher accepted Peter Jones' and Duncan Bannatyne's offer of £150,000 for 30 per cent equity going down to 20 per cent once the investment is repaid.
Verdict: Nice to see a successful inventor in the Den.
- You can replay the episode on the BBC's Dragons' Den website
What did you think of the episode?
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Comments
Well, week 8 and another game of two halves.
Yum Yums looked to me like a clone of the Mr Men books, I read to my children some 25 years ago (was it really that long ago!!!). The whole idea was ill-judged, and not very professional. If you don't proof read your material before you go to press then you deserve to be mauled as this pair were. I hope that they can shift their 'remainder' stock, and then live a happy quiet life somewhere, but not in book publishing.
Value My Stuff Now, was a well presented pitch, and clearly has merit. It will have the same 'selling on the web' problems that all web based businesses have, but this may well be a business 'of the moment'. Good investment by Theo & Deborah - the dream team are back?!
I could think of lots of puns to write about Odourbuster, but will control myself!! Was this another idea designed to cure a problem that doesn't exist? Opening the window has worked for years in our house, and in the commercial world it wouldn't work anyway - at the moment. Perhaps they should have a look at developing a commercial solution & then come back to market again.
And so to Power8 Workshop. Brilliant DIY product with lots of potential, but I had to rush for the paracetamol, when he started to explain the company structure!! I sense that Chris knew that it was too complicated before he entered the Den, and was prepared to do something about it in the short to medium term.
Will the dynamic duo - Duncan & Peter be able to work together? Probably yes, because I have a feeling that the on screen animosity & contempt that Duncan often shows for Peter is 'playing to the cameras' rather than for real. Watch this space!!
And so to Week 9!
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