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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?
Related articles:
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?
Related articles:
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