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Dragons' Den digest - Week 9
Dragons' Den digest - Week 9
September 07, 2010
If you missed last week's, catch up here and below you will find the highlights of episode eight.
Quote of the Episode: "I’ve just got to get my chequebook." Theo Paphitis
Idea 1
Product: Sweat Sportz - a plastic vest worn during exercise to allow the user to sweat more and therefore lose weight at a faster pace.
Investment sought: £100,000 for 10 per cent equity.
Handling: A confident start, but nerves got to them a little bit towards the end of the pitch. The Dragons seemed impressed at first but concerns were raised over the price of the product being too high for a disposable item. They seemed confident about their figures but then were caught out by James Caan when he asked them about their profit forecasts. Theo Paphitis and Duncan Bannatyne raised concerns that the vest was not an innovative idea and that the majority of people would not use it.
Outcome: No investment.
Verdict: A confident start but fell down when it came to the numbers. The product seemed too niche for the mass market and was not an innovation.
Idea 2
Product: Content and Calm (Traykit) - An innovative children's bag which folds out into a tray to be used on long journeys.
Investment sought: £80,000 for ten per cent equity.
Handling: A very confident and passionate pitch. She knew her product and market well and demonstrated excellent knowledge of the financial situation of her company. She impressed the Dragons with the news that she has been approached by several large retailers. Duncan Bannatyne wondered why she needed an investment, as the company seemed to be doing very well already. Peter Jones went straight in with an offer of the full amount for 25 per cent, but was quickly undercut by James Caan who offered the same amount for 15 per cent equity. After some negotiation, Peter Jones suggested he joined forces with Deborah Meaden and they offered to make the investment for 12.5 per cent equity each.
Outcome: Peter Jones and Deborah Meaden - full £80,000 for 25 per cent equity.
Verdict: Excellent product and pitch, she knew her stuff and it showed. She managed to keep cool under pressure and went away with a good deal.
Idea 3
Product: TailorMade - 3D body scanning technology which takes measurements for bespoke handmade suits.
Investment sought: £75,000 for ten per cent equity.
Handling: An interesting start to the pitch with a demonstration of the 3D scanner, followed by a confident presentation of his company. The Dragons initially seem impressed with the technology and the speed with which it works. However Theo Paphitis felt the product was over-engineered and that it fixed a problem that didn't exist. Peter Jones added that the cost of installing the technology was so high, few tailors would be able to justify the expense.
Outcome: No investment.
Verdict: A good idea but over-engineered and expensive, this product solves a problem that doesn’t need to be fixed.
Idea 4
Product: Proppa - a website that sells accessories for vans, motorhomes, pickup trucks, etc.
Investment sought: £50,000 for five per cent equity.
Handling: An impressive and honest pitch, where he clearly demonstrated his knowledge of the financial side of his business. James Caan questioned his financials and soon uncovered that he had a large bank debt. Deborah Meaden became frustrated and demanded to know why he borrowed so much money from the bank. Not satisfied with his response, Deborah declared herself out. Duncan Bannatyne thought differently and offered the full amount for 20 per cent equity. Peter Jones then came in with another offer, the full amount but for 25 per cent, claiming he was worth more due to his online expertise.
Outcome: Duncan Banntyne - £50,000 for 20 per cent equity.
Verdict: A good business opportunity with potential to make money, and an honest pitch helped him gain credibility with the Dragons.
- You can replay the episode on the BBC's Dragons' Den website
What did you think of the episode?
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Comments
Week 9 - getting toward the end of the series.
The only person to sweat with Sweat Sports was Dad, when he got completely knotted up with the financials!! The son had the right pedigree, with his previous sporting career, but the product was not sufficiently different enough to make a big impact. And the fact that it was not re-usable seemed to me to be a downside.
I could see why this lady was a lawyer - cool, calm, collected, and completely unflappable under cross examination. The product was good, her previous track record in the product marketplace stood her in good stead, and Peter Jones was totally smitten! They will get on well, Deborah, might find herself playing 'gooseberry'!!
Tailormade - wasn't! This was an example of believing that high tech will fix everything, when in reality all most people want is a courteous salesman, with a tape measure & good personal customer service, and calls you 'Sir'.
And so to Proppa. I couldn't get to like this guy, no matter hard I tried. He just seemed to be 'odd', and not all that convincing. Obviously he had been successful, the financials tended to confirm, but when faced with two offers - one from Peter Jones & one from Duncan Bannatyne, he went with DB, even though most people know that PJ is streets ahead in this marketplace. And then, to finally finish it off, the guy said he went with DB becuase, as a salesman himself, he thought Peter was a bit 'too pushy'!! Kettle, pot & black come to mind.
My vote of the evening goes to Content & Calm by a long margin.
And so to Week 10
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