0:00:25 > 0:00:27These are the Dragons,
0:00:27 > 0:00:32five of Britain's wealthiest and most enterprising business leaders.
0:00:32 > 0:00:39Over the next 12 weeks, they'll make or break the dreams of dozens of budding entrepreneurs.
0:00:40 > 0:00:46What investigation have you done to justify the most ridiculous, ludicrous, insane valuation?
0:00:46 > 0:00:49Oh, for goodness' sake! You're off the wall!
0:00:49 > 0:00:54- I don't want to know percentages. Real pounds, shillings and pence. - She said...
0:00:54 > 0:00:57Oh, my goodness gracious me!
0:00:57 > 0:01:01I absolutely get this product, so I'm going to make you an offer.
0:01:08 > 0:01:14The multi-millionaire investors have each built up their fortunes from scratch.
0:01:17 > 0:01:20Retail magnate Theo Paphitis.
0:01:20 > 0:01:24Hotel and health club owner Duncan Bannatyne.
0:01:24 > 0:01:28Leisure industry expert Deborah Meaden.
0:01:28 > 0:01:30Logistics queen Hilary Devey.
0:01:31 > 0:01:34And telecoms giant Peter Jones.
0:01:34 > 0:01:40The Dragons have the credentials, the contacts, the commitment and the cash ready to invest,
0:01:40 > 0:01:42but only in the right business.
0:01:42 > 0:01:48Will any of these hopeful entrepreneurs walk away with their money?
0:01:55 > 0:01:59Welcome back. Tonight we reopen the doors to the Den
0:01:59 > 0:02:05where our hopeful entrepreneurs, all fuelled with business ambition and driven by a need for cash,
0:02:05 > 0:02:11are poised to descend the stairs and pitch to our five multi-millionaire investors.
0:02:11 > 0:02:15Economic times may be tough, but all I can say is
0:02:15 > 0:02:19through bust and boom the Dragons have had one consistent aim -
0:02:19 > 0:02:22to put their own money into the next big thing.
0:02:22 > 0:02:26Our first entrepreneur is mother of three Bee London,
0:02:26 > 0:02:30who has a tiny, tiny slice of the huge beauty market in the UK
0:02:30 > 0:02:34and she wants the Dragons' help to make that slice a little larger.
0:03:11 > 0:03:15- Do I start talking?- Yep! - Yes! It's a good idea!
0:03:15 > 0:03:16Sorry.
0:03:16 > 0:03:18Em, yes...
0:03:18 > 0:03:23My name's Bee and I'm looking for £85,000
0:03:23 > 0:03:30for 10% of my company, Weave Got Style In-store. What we do is hair extensions.
0:03:31 > 0:03:38So we're going to do a bit of a demo now so you can have a look at what we do.
0:03:38 > 0:03:42Right. What we have in-store are hair extension bars.
0:03:44 > 0:03:48So...the clients have a similar process to this.
0:03:48 > 0:03:55These two guys are going to do what we do normally in-store and I'll talk to you about the company.
0:03:55 > 0:04:01Weave Got Style first established in 2008. I don't know if you've watched the show The Apprentice.
0:04:01 > 0:04:07I saw a bit of that and I saw that they went into shopping centres and trial marketed their products.
0:04:07 > 0:04:10So I thought it would be a good idea to do that.
0:04:10 > 0:04:13And, em, it took off very well.
0:04:13 > 0:04:16We now have three bars
0:04:16 > 0:04:22and I'm hoping to open two more bars and I would like your investment in helping me do this.
0:04:22 > 0:04:27If you have any questions, please ask now. Thank you.
0:04:30 > 0:04:35A somewhat disorderly pitch from Bee London from North London.
0:04:35 > 0:04:40She needs £85,000 to roll out her in-store hairstyling concept
0:04:40 > 0:04:44and she's putting up a 10% stake in return.
0:04:44 > 0:04:51- Thank you.- Hilary Devey is first to interrogate the enthusiastic entrepreneur.
0:04:52 > 0:04:59Bee, is there anybody else doing this? I've seen them where they actually glue them in.
0:04:59 > 0:05:02That's where I saw the gap in the market.
0:05:02 > 0:05:07Generally, people were gluing them in and it was taking 5-6 hours.
0:05:07 > 0:05:10With our method, we do a full head in an hour.
0:05:10 > 0:05:14You know, what we do is we cut it in, we style it in.
0:05:14 > 0:05:18- My ones are in. You can pull them, tug them.- You've got them in now?
0:05:18 > 0:05:23Yeah, I've got them in. The plait and the threading gives you a bit of oomph.
0:05:23 > 0:05:29- Where do you plan on going with the business?- Hair extensions were for the rich and the famous.
0:05:29 > 0:05:35The vision I had was let's bring it into the department stores, but also maybe places like New Look,
0:05:35 > 0:05:40Topshop. You know, we can use three different colours.
0:05:40 > 0:05:46People with blonde hair will say, "I want it a bit warmer underneath. I don't want to be so blonde..."
0:05:46 > 0:05:51- Bee.- Sorry.- You've just painted a beautiful picture,
0:05:51 > 0:05:57but let's concentrate on the business. Which one has been open the longest?
0:05:57 > 0:06:02My original one that I opened is in Bluewater Shopping Centre.
0:06:02 > 0:06:05Tell me what the turnover was in the last year.
0:06:05 > 0:06:10The turnover on that was £365,000 with a £55,000 profit.
0:06:10 > 0:06:16- And what about the other ones? - I then opened House of Fraser in Lakeside.
0:06:16 > 0:06:21That one took £123,000 with £26,000 profit.
0:06:21 > 0:06:26And my one that I've opened most recently in Trafford Centre Selfridge's
0:06:26 > 0:06:29took £240,000 in 10 months.
0:06:33 > 0:06:37By revealing ambitious plans and a flourishing revenue stream,
0:06:37 > 0:06:45Bee looks to have quickly relaxed into Den questioning. Peter Jones is keen to drill down further.
0:06:47 > 0:06:48Bee...
0:06:48 > 0:06:55- Yes.- Manchester turned over £240,000.- In 10 months, yeah. - What was the profit for there?
0:06:55 > 0:06:57Oh, I don't know offhand.
0:06:57 > 0:07:02- The profit... We... I don't know what the profit is.- OK.
0:07:05 > 0:07:11- So between all three of them, you're turning over about three-quarters of a million pounds.- Yes.
0:07:11 > 0:07:15- And you could be making close on £100,000 profit a year.- Yeah.
0:07:15 > 0:07:20Can I just take you through so I get a proper breakdown of each area?
0:07:20 > 0:07:23What's your staff costs at Lakeside?
0:07:23 > 0:07:25Staff costs at Lakeside...
0:07:28 > 0:07:30I don't know that offhand.
0:07:32 > 0:07:36OK. You make what kind of margin, gross?
0:07:39 > 0:07:42The margin, gross, is I think about...
0:07:46 > 0:07:4875%.
0:07:50 > 0:07:53Bee...are you guessing?
0:07:57 > 0:08:02If I want extensions, how much would it cost me?
0:08:02 > 0:08:06- £240.- How much would the raw material cost?
0:08:06 > 0:08:08About £100.
0:08:08 > 0:08:16So if you buy your hair for £100 and you double it, what figure do you get?
0:08:16 > 0:08:22- 200.- Good. OK. On top of that 200, you've got to add VAT. What does it come to?
0:08:22 > 0:08:26- 240.- Which is what you sell for. - Yes.- Right.
0:08:26 > 0:08:29What percentage is 100 of 200?
0:08:30 > 0:08:32- 50%.- Excellent.
0:08:32 > 0:08:34Now that's your margin.
0:08:34 > 0:08:36Yeah.
0:08:37 > 0:08:44But we don't... Like, I buy the hair for 100, but we don't do one head, we'll do two heads out of it. So...
0:08:44 > 0:08:45Uh...!
0:08:45 > 0:08:51- Uh!- Hence why she gets the 75%. - No, no, that's nonsense.
0:08:51 > 0:08:54- So it's £50.- 75%. It's £50.
0:08:54 > 0:09:00- Peter, I can only go by what she says. I'm not going to pretend I know her business.- She said that.
0:09:00 > 0:09:07- No, she didn't.- She did. She said 75% was her gross margin. 75% of the numbers is 50 quid cost.
0:09:07 > 0:09:11- Peter, she said the head of hair cost £100.- Yes.- That's all I want.
0:09:11 > 0:09:16- I don't want to know percentages. Real pounds, shillings and pence. - But she said...
0:09:16 > 0:09:21Can you settle down? This is about Bee, not about you two.
0:09:23 > 0:09:29A contrite looking Bee can only watch as the lack of clarity in her numbers
0:09:29 > 0:09:36causes tempers to flare. Can she now find solace from an unlikely corner of the Den?
0:09:36 > 0:09:41Bee, let's just forget about numbers for a second. OK? Tell me about you.
0:09:44 > 0:09:45Em...
0:09:52 > 0:09:54I built myself up from the ground.
0:10:00 > 0:10:04- Take a deep breath.- Yeah. - Take your time.
0:10:05 > 0:10:07Em...
0:10:07 > 0:10:09I basically started off, em...
0:10:11 > 0:10:13..on a market stall.
0:10:13 > 0:10:18And I found whatever I sold sold quite well,
0:10:18 > 0:10:22so I used my personality to sell the products
0:10:22 > 0:10:26and then I went to a busy area with lots of ladies shopping
0:10:26 > 0:10:33and it took me seven months before I had a shop and that's when I came up with doing hairdressing.
0:10:33 > 0:10:36Em, and I have...
0:10:36 > 0:10:41I really want people to see my vision
0:10:41 > 0:10:45and, em, I've worked very, very hard for what I have
0:10:45 > 0:10:49and I don't want to, em, ruin my chances.
0:10:52 > 0:10:55A heartfelt exchange.
0:10:55 > 0:10:59Unable to rein in her emotions, her entrepreneurial spirit is clear.
0:10:59 > 0:11:03Is that enough for Deborah Meaden to give her a second chance?
0:11:03 > 0:11:08So you've got something and you're passionate about it.
0:11:08 > 0:11:13Your numbers are all over the place, but sometimes people just instinctively make money.
0:11:13 > 0:11:21The trouble is turnover is a good start, but it doesn't mean anything until it drops through to profit.
0:11:21 > 0:11:28- Yes.- So...what's your balance sheet? - The balance sheet. What do you mean by the balance sheet?
0:11:30 > 0:11:35- You don't know what the balance sheet...?- I have seen them, the balance sheets.
0:11:35 > 0:11:40Do you know how much stock is going into each store?
0:11:40 > 0:11:46- No. I just basically... - Do you know how much wages go into each store?- No, I don't,
0:11:46 > 0:11:48to be honest.
0:11:48 > 0:11:50Bee...
0:11:50 > 0:11:54- Yes, sorry?- You're not managing the business, are you?
0:11:56 > 0:12:03OK, I've made my mind up. You have started something and accidentally made some money out of it.
0:12:03 > 0:12:08And you worry me that you could accidentally lose an awful lot.
0:12:08 > 0:12:15- Yeah, I understand where you're coming from. - I'm not coming from anywhere.
0:12:20 > 0:12:22I'm out.
0:12:23 > 0:12:29A first blow for the young entrepreneur as an exasperated Deborah Meaden walks away.
0:12:29 > 0:12:34Will Theo Paphitis be more forgiving?
0:12:37 > 0:12:43Bee, there is no question in my mind that you are driven, you're passionate,
0:12:43 > 0:12:48you want to get somewhere, but there's a "but".
0:12:49 > 0:12:50Today
0:12:51 > 0:12:56you were winging it. Purely winging it.
0:12:56 > 0:12:58- True?- Yes, I agree. Yeah.
0:12:59 > 0:13:03That's never a good tactic in the Den.
0:13:05 > 0:13:08I'm out.
0:13:10 > 0:13:16The problem is, Bee, that if you don't know the individual wages and costs of each outlet,
0:13:16 > 0:13:22you won't know if they're all making a profit. You need to understand the individual outlets
0:13:22 > 0:13:27before you open any more. I think you have a lot of work to do in understanding that.
0:13:29 > 0:13:31I'm out.
0:13:32 > 0:13:39Bee fails to convince two more Dragons and her investment dreams are fading fast.
0:13:39 > 0:13:44And now Peter Jones looks to have made up his mind, too.
0:13:45 > 0:13:51You've done incredibly well. I think you have built a very successful business,
0:13:53 > 0:13:59but I think you have entered a marketplace that is easily replicated,
0:13:59 > 0:14:04so I'm not going to invest in you today for that reason, Bee. I'm out.
0:14:08 > 0:14:12I think your numbers are all over the place.
0:14:13 > 0:14:16I think you're commercially unaware.
0:14:23 > 0:14:25I can forgive you.
0:14:26 > 0:14:29I think you've done remarkably well.
0:14:35 > 0:14:37I'm going to make you an offer.
0:14:40 > 0:14:43I'll offer you the full 85.
0:14:44 > 0:14:47But not for 10%.
0:14:48 > 0:14:51It's not worth my while.
0:14:54 > 0:14:57I would like
0:15:00 > 0:15:0240%.
0:15:09 > 0:15:14I'm a bit terrified of the 40% because that's a huge percentage.
0:15:14 > 0:15:18- Would you consider going down to 30?- No.
0:15:19 > 0:15:22Because you need so much time.
0:15:28 > 0:15:34- What about if I... - Bee, together we'll build a very successful company.
0:15:34 > 0:15:41Not necessarily in the same model that it's in now, but a business model to go forward with.
0:15:46 > 0:15:48OK, I accept your offer.
0:15:52 > 0:15:56Bee's done it. Amongst the confusion and the emotion of her pitch,
0:15:56 > 0:16:03Hilary Devey recognised her potential. However, her support comes at a high price.
0:16:05 > 0:16:11The Dragons never know who will walk down the stairs into the Den or what they will reveal.
0:16:11 > 0:16:18Husband and wife team Colin and Yelena Goddard hope to secure £50,000 to help develop their answer
0:16:18 > 0:16:24- to a common holiday problem. - Hello. It looks like you're struggling to get comfortable.
0:16:24 > 0:16:27Have you tried the new SmartMat?
0:16:28 > 0:16:32It's revolutionary comfort for all your travel and leisure needs.
0:16:32 > 0:16:38And look at this - SmartMat inflates itself in just under a minute.
0:16:40 > 0:16:45- RUSSIAN ACCENT: - SmartMat is so versatile you can use it anywhere.
0:16:45 > 0:16:50By the pool, on the beach, on picnics, and it even floats on the water.
0:16:50 > 0:16:56It wasn't long before Duncan Bannatyne spotted a fundamental flaw.
0:16:56 > 0:17:02- I'm stunned to hear you say there is no other similar product on the market.- Yep.
0:17:02 > 0:17:08- Because I just spent a week sleeping on one. - Did it have the detachable towel?
0:17:08 > 0:17:12No, it didn't have the detachable towel. Same product as that.
0:17:12 > 0:17:18- Yep.- So why are you saying there's nothing similar? - Cos it doesn't come with the towel.
0:17:18 > 0:17:20Oh, my goodness gracious me!
0:17:20 > 0:17:25A jolly atmosphere, perhaps, but it soon came down to the bottom line.
0:17:25 > 0:17:29- How much stock have you got? - 500 units.- Landed cost?
0:17:29 > 0:17:34- £11.94.- Wholesale? - Between £14.50 and £18.
0:17:34 > 0:17:40You're not going to make me rich or make yourself rich on this. That's the problem.
0:17:40 > 0:17:47- It's not new, it's not difficult to copy, there's nothing unique in it that you own.- Apart from that...
0:17:48 > 0:17:52Apart from the fact that you're lovely, I'm not going to invest.
0:17:52 > 0:17:58However, it wasn't all bad news for the first-time entrepreneurs.
0:17:58 > 0:18:02Unfortunately, I'm out, but I love that jacket.
0:18:02 > 0:18:06If you were a little bit slimmer, I might offer to buy it from you.
0:18:07 > 0:18:10A few shoulder pads. I love it.
0:18:14 > 0:18:20Nothing causes more argument in the Den than the values entrepreneurs put on their businesses.
0:18:20 > 0:18:25So is our next entrepreneur, Adam Ewart from County Down, confident, courageous
0:18:25 > 0:18:31or a bit reckless? He's going into the Den putting a £2 million price tag on his company.
0:18:49 > 0:18:53Hello, Dragons. My name's Adam Ewart.
0:18:53 > 0:18:59I'm here today to offer you 5% equity in return for an investment of £100,000.
0:18:59 > 0:19:05Sendmybag was founded after my girlfriend was forced to pay over £60 excess baggage
0:19:05 > 0:19:08travelling from Heathrow to Belfast.
0:19:08 > 0:19:12On returning home, we looked online for a service that we could use
0:19:12 > 0:19:16to send her suitcases to university the following term. One didn't exist
0:19:16 > 0:19:22so the next morning I spoke to the national couriers and by lunchtime I'd set up a service
0:19:22 > 0:19:29where I could collect and deliver a 30kg suitcase anywhere in the UK for £22.
0:19:29 > 0:19:34The following term over 100 students used Sendmybag to travel to university.
0:19:34 > 0:19:39Over the next few years, the business has netted me in excess of £100,000 profit,
0:19:39 > 0:19:43but this is where it starts to get more interesting.
0:19:43 > 0:19:49In the middle of last year customers started asking us for international services.
0:19:49 > 0:19:55Airline excess baggage fees have been growing almost exponentially.
0:19:55 > 0:19:59Travelling with luggage can now represent a real financial pain.
0:19:59 > 0:20:04The solution is an affordable international luggage service.
0:20:04 > 0:20:07And that service is Sendmybag.
0:20:07 > 0:20:09I'm happy to take any questions.
0:20:11 > 0:20:15A self-assured pitch from 27-year-old Adam Ewart.
0:20:15 > 0:20:21His alternative to hefty excess baggage charges is a web business that couriers your suitcases
0:20:21 > 0:20:28door to door instead. He needs £100,000 investment and is prepared to part
0:20:28 > 0:20:33with 5% in return. First to investigate the opportunity on offer is Duncan Bannatyne.
0:20:33 > 0:20:39Thank you, Adam. Which airlines charge extra for extra luggage?
0:20:39 > 0:20:44The low-cost airlines with their 170 million people every year,
0:20:44 > 0:20:49- they carry them around Europe... - Yeah, the difference is, though, that going to America
0:20:49 > 0:20:54the low-cost airlines don't go there so two cases are usually included.
0:20:54 > 0:20:59- I'm just wondering how limited you are.- There's 500,000 international students studying
0:20:59 > 0:21:03in the UK today. They all have to travel home
0:21:03 > 0:21:08and they all have to travel with more than one or two bags.
0:21:08 > 0:21:14I also have people who wanted the convenience aspect, not so much saving lots of money.
0:21:14 > 0:21:19- OK. How many years have you been doing this? - I started about 4½ years ago.
0:21:19 > 0:21:22And it is growing rapidly.
0:21:22 > 0:21:25So far this year we are up 250%.
0:21:25 > 0:21:31- So what's your projected turnover? - We're going to finish this year at £200,000.
0:21:31 > 0:21:36So net profit is going to be £60,000.
0:21:36 > 0:21:41- Will you have taken a wage out of that?- I won't have.- Right, OK.
0:21:41 > 0:21:46So you've got a company projected to make a maximum of £60,000,
0:21:46 > 0:21:52without you taking a wage, and you've valued the company at two million quid.
0:21:52 > 0:21:54I have, yes.
0:21:56 > 0:22:02Low profits and high valuations are unlikely to endear you to Dragon investors,
0:22:02 > 0:22:06but a confident Adam appears unfazed by their reaction.
0:22:06 > 0:22:10How will he cope under the scrutiny of Theo Paphitis?
0:22:10 > 0:22:14Adam, you're going to have to show me why you're standing there
0:22:14 > 0:22:18and valuing what you've got at a couple of million quid.
0:22:18 > 0:22:24The two million valuation is from real reasons. I've looked at other tech start-up businesses.
0:22:24 > 0:22:28Are they positive cash flow? Is their market growing like ours?
0:22:28 > 0:22:29No.
0:22:29 > 0:22:34Whichever book told you that's how you value that business,
0:22:34 > 0:22:39did they forget to put the bit in "and you have a business that anyone can copy
0:22:39 > 0:22:43"so if it's really successful, someone will nick your lunch"?
0:22:44 > 0:22:49What makes you so special that nobody else can duplicate this?
0:22:49 > 0:22:53This has started out of a problem. That's one advantage.
0:22:53 > 0:22:58- I didn't try to force this... - No, what's different about you?
0:22:58 > 0:23:04We provide services to ensure that we can get your stuff out of the country to your destination...
0:23:04 > 0:23:10- Adam, just tell us. What makes you special? - Me. There we go. I've said it.
0:23:10 > 0:23:16Not to be arrogant, me. Any business is going to be strategy and implementing that strategy.
0:23:16 > 0:23:20I have taken the decision that this can be massive.
0:23:20 > 0:23:26My plan is to get this business to a position in two years' time where we can take it globally.
0:23:28 > 0:23:33Adam may be standing his ground admirably,
0:23:33 > 0:23:37but the words look wasted on an irritated Peter Jones.
0:23:37 > 0:23:42Adam, you are valuing your business
0:23:42 > 0:23:49- at ten times revenue projections. - Well, we have a brand. Our brand is...- You don't have a brand!
0:23:49 > 0:23:54You turn over diddly squat! I could set up sendmyluggage.com and invest in it.
0:23:54 > 0:23:59I own that, too. You can't. You're giving me a hard time...
0:23:59 > 0:24:05What?! You value your business on projections at ten times revenue and you don't expect a hard time?
0:24:05 > 0:24:12- Well...- What investigation have you done to justify the most ridiculous, ludicrous, stupid,
0:24:12 > 0:24:14insane valuation?
0:24:15 > 0:24:19I have... I have one investor already.
0:24:19 > 0:24:26A software entrepreneur. He took a company from 500 grand turnover and sold it for over 200 million.
0:24:27 > 0:24:32- What did they give you, in money terms?- They're investing £100,000.
0:24:32 > 0:24:39- And at what percentage? - I want to be... They're taking between 7% and 10%.
0:24:39 > 0:24:44- So they haven't done it yet. - No.- OK. So can you just explain to me
0:24:44 > 0:24:51why this investor brings twice as much value as a Dragon?
0:24:51 > 0:24:55He doesn't bring twice as much value as a Dragon.
0:24:55 > 0:25:00The Dragons, all of you, bring a lot and I wouldn't be standing here...
0:25:00 > 0:25:04That's a description of why he doesn't bring so much value
0:25:04 > 0:25:11and you asked for a description of why he does bring twice as much. Adam, you need to be succinct.
0:25:11 > 0:25:17- What's he got?- He's brought money to the table and shown interest... - You're asking us to do the same.
0:25:17 > 0:25:24When I first met him, I was going to finance it myself. I need 150 grand, I'm going to do it all myself...
0:25:24 > 0:25:30- Adam, answer the question. - He doesn't bring double the value, but what he does bring
0:25:30 > 0:25:34is that it's an investor there and the business has moved on.
0:25:34 > 0:25:41Adam, you have just NOT explained to me why the investor who has NOT yet put £100,000 in
0:25:41 > 0:25:46is still going to get twice as good a deal as you're offering here.
0:25:46 > 0:25:48I can't invest.
0:25:48 > 0:25:50I'm out.
0:25:50 > 0:25:52Ah.
0:25:52 > 0:25:56Frankly, it's just disappointing and insulting.
0:25:58 > 0:26:00I'm out.
0:26:00 > 0:26:07A double blow for the previously confident Adam as two Dragons refuse to do business with him.
0:26:07 > 0:26:12Will logistics expert Hilary Devey offer the young entrepreneur any respite?
0:26:14 > 0:26:18First of all, how many losses have you had? How many non-arrivals?
0:26:18 > 0:26:26- We have had one non-arrival in the last 4½ years.- So you deal with recognised courier networks.
0:26:26 > 0:26:30You use their intellectual property and their IP to track it.
0:26:30 > 0:26:35- In the UK we work with Parcelforce and, in America, FedEx.- Right.
0:26:35 > 0:26:40So you've got to have some kind of software to connect to their IT
0:26:40 > 0:26:45- to track them cases. How are you going to do that? - We're integrating...
0:26:45 > 0:26:51Oh, for goodness' sake! Why reinvent the wheel? Do you know I run a courier network?
0:26:51 > 0:26:56- I certainly know.- So what's to stop me putting a line on my website
0:26:56 > 0:27:02saying, "We can collect your luggage"? They can dial online and see what time it will arrive
0:27:02 > 0:27:06- and what road it's on. - Yeah. That's...
0:27:06 > 0:27:11What you've got to do is dial in to FedEx's consignment system.
0:27:11 > 0:27:16So what you're doing is duplicating the work already being done anyway.
0:27:16 > 0:27:24I'm more than happy for a large logistics company to step in, perhaps invest in us strategically.
0:27:24 > 0:27:31Why on earth would any logistics company want to do that when they could do it themselves anyway?
0:27:32 > 0:27:39I think you're talking rubbish. And to come in here asking for 100K
0:27:39 > 0:27:43for 5% is...is... You're off the wall!
0:27:45 > 0:27:47I'm out!
0:27:47 > 0:27:52An incensed Hilary Devey leaves Adam in no doubt about her position
0:27:52 > 0:27:56and his Den ordeal is not yet over.
0:27:57 > 0:28:03You do look credible, you talk well, but every time you've been challenged
0:28:03 > 0:28:08- you've never put up. - I feel like I've failed in getting across my point
0:28:08 > 0:28:13and given the wrong impression. I understand investors need to get their money back.
0:28:13 > 0:28:19But the problem is the minute everybody thinks this is a million-pound business,
0:28:19 > 0:28:23every kid in every university will do the same.
0:28:23 > 0:28:26And they already try.
0:28:26 > 0:28:27Adam...
0:28:29 > 0:28:32- I'm out.- Thank you, though.
0:28:32 > 0:28:35Adam, how negotiable is the 5%?
0:28:38 > 0:28:43- After all... - How negotiable is the 5%, Adam? - My 5% is a starting point.
0:28:43 > 0:28:49Adam, if you want an investment of £100,000 off me, you need to tell me the highest percentage you'd give.
0:28:58 > 0:29:01The highest percentage equity that I can go to...
0:29:04 > 0:29:07..is 7%.
0:29:08 > 0:29:15The problem is it's never going to be worth £100,000 for 7%.
0:29:17 > 0:29:20I'm out.
0:29:21 > 0:29:24A humbling experience for Adam.
0:29:24 > 0:29:30High valuation equals high risk in the Den, a risk that didn't pay off for him.
0:29:33 > 0:29:40We're clearly not a big, big brand, but I feel we have a lot more potential than other businesses.
0:29:40 > 0:29:44And I was hoping that I could have communicated that a little bit more,
0:29:44 > 0:29:51but I didn't really get an opportunity to, I think because of my valuation.
0:29:56 > 0:30:03Common sense says that getting Dragons to participate in your pitch would engage them more in your idea.
0:30:03 > 0:30:10That's what partners Harriet Thomas and Sue Newman thought when they asked for a £50,000 investment.
0:30:10 > 0:30:14I was a singer and wanted to pass on my passion for music to my children,
0:30:14 > 0:30:18but I couldn't find anything that got my toes tapping.
0:30:18 > 0:30:23- So we decided to work together... - And soon we started running music workshops
0:30:23 > 0:30:28- around southwest London.- Do you want to listen to the song?- Just join in.
0:30:28 > 0:30:33The more enthusiasm, the more the children will really learn from the activities.
0:30:33 > 0:30:38# Brussels sprouts, Brussels sprouts Hands up who likes Brussels sprouts
0:30:38 > 0:30:45# Yummy, yummy, yummy Put it in my tummy I like Brussels sprouts! #
0:30:45 > 0:30:49Whilst some of the Dragons got to grips with the singing class,
0:30:49 > 0:30:52Peter Jones was less enthusiastic.
0:30:52 > 0:30:57I've been given a rhyme and two sticks.
0:30:57 > 0:31:03- Why is this a business? - We have 100 original songs.- Original songs? You could have apple pie!
0:31:03 > 0:31:05- #- Apple pie, apple pie...- # Exactly.
0:31:05 > 0:31:12"Yummy, yummy, yummy, in my tummy" is not an IP that you can claim for your business.
0:31:12 > 0:31:19- Anybody can duplicate this. - But he did that with my melody, so I'd have to sue him for that.
0:31:19 > 0:31:20What?!
0:31:20 > 0:31:26In the end, the Dragons needed more than dedication alone to invest.
0:31:26 > 0:31:29You don't seem to understand your USP.
0:31:29 > 0:31:32It isn't the songs, Harriet.
0:31:32 > 0:31:40It's you two that are driving this business forward. The trouble is I'm not convinced it's scalable
0:31:40 > 0:31:44- and I don't believe it's a business. I'm out.- Thank you.- Good luck.
0:31:45 > 0:31:49So far tonight, only one business has earned a Dragon investment.
0:31:49 > 0:31:54- I accept your offer. - To hear from Hilary Devey about why she invested in Bee,
0:31:54 > 0:31:59press your red button at the end of the programme.
0:32:00 > 0:32:06Personality can go a long way to opening doors in business, but it can't guarantee success.
0:32:06 > 0:32:12Our next entrepreneur has plenty of personality. He's former boxer turned inventor Clay O'Shea.
0:32:12 > 0:32:15So has he got the product to make a great business?
0:32:20 > 0:32:22Hi, Dragons.
0:32:22 > 0:32:24It's not real, I promise you.
0:32:30 > 0:32:33Hi. My name's Clay O'Shea
0:32:33 > 0:32:38and I'm here for a £50,000 investment for a 25% share
0:32:38 > 0:32:41in my invention, AbsPak.
0:32:42 > 0:32:48Dragons, I've not got the best business brain, but what I do feel is I'm a decent inventor
0:32:48 > 0:32:54and I've come up with a really good idea. With my beautiful idea and your beautiful brains,
0:32:54 > 0:33:02there's no reason why AbsPak can't become the best bit of kit in the UK, maybe even the world.
0:33:03 > 0:33:08AbsPak is simple. It's so simple you wouldn't even know I've got it on.
0:33:10 > 0:33:15So look, here you have a normal spine. This is quite impressive.
0:33:15 > 0:33:19It's called a lumbar spine, that. The natural curve.
0:33:19 > 0:33:25Most sit-ups are done with a flat back. That puts stress on your lumbar box spine.
0:33:25 > 0:33:31It degenerates your lower discs and wears out your facet joints. AbsPak fits perfectly
0:33:31 > 0:33:33into that curve.
0:33:33 > 0:33:38So now I'll give you a demonstration of how not to do sit-ups.
0:33:38 > 0:33:43How many times in the gym do you see the whole neck moving? That's not a sit-up, that's a neck-up!
0:33:43 > 0:33:47"Ah! Me back's gone! Me neck's gone!"
0:33:47 > 0:33:52So now look at this. I can sit and watch TV. The only thing moving
0:33:52 > 0:33:55is my abs. There's loads of exercises.
0:33:55 > 0:33:59It's just my abs. My neck's not moving, just my abs.
0:33:59 > 0:34:01No chance...of any trouble.
0:34:01 > 0:34:06Now once you do AbsPak, you'll never turn back. Please, help me.
0:34:09 > 0:34:14A passionate plea ends this whirlwind pitch from Clay O'Shea.
0:34:14 > 0:34:21He needs a £50,000 investment in his portable muscle-building device and is offering 25% of his company.
0:34:21 > 0:34:25Theo Paphitis just looks bemused.
0:34:27 > 0:34:31Em... OK, we all understand now what it does.
0:34:32 > 0:34:37- What do you do?- Em, well, I run a small gym over in Notting Hill.
0:34:37 > 0:34:44- Do you make a living?- Yeah, I keep it small, I don't advertise. You only get in if you know someone.
0:34:44 > 0:34:48You know like Fight Club? You don't talk about Fight Club.
0:34:48 > 0:34:53I've got a great life, no matter what. I feel privileged.
0:34:53 > 0:34:59- Talk me through your history. How old are you?- 45.- What have you been doing?- I was a professional fighter.
0:34:59 > 0:35:05- I used to be a pro boxer. - To what age? - I retired quite early. About 29.
0:35:05 > 0:35:08I was managed by Mancini and Mickey Duff.
0:35:08 > 0:35:12I was the second-best boxer in Great Britain.
0:35:12 > 0:35:17I had over 100 fights and I came second in every one.
0:35:21 > 0:35:28Charming the Dragons is a good start, but now Duncan Bannatyne wants to get down to business.
0:35:28 > 0:35:32What does it cost to make an AbsPak?
0:35:32 > 0:35:36- £3.25.- OK. What would you sell it for?- £19.99.
0:35:36 > 0:35:40Apart from the fact that you can strap it on all the time,
0:35:40 > 0:35:45what's the advantage of that against a rolled-up towel?
0:35:45 > 0:35:48That's like between using a skateboard and a car.
0:35:48 > 0:35:54If you're getting a towel, you've got to roll it up and after a few sit-ups it loses shape.
0:35:54 > 0:35:59- This will never lose shape. - Can you pass it to me?- Yeah.
0:36:00 > 0:36:02It fits all sizes.
0:36:02 > 0:36:07- So what's in it?- Foam.- Foam. - Foam rubber, yeah.
0:36:07 > 0:36:11What patents have you got?
0:36:11 > 0:36:15OK, there's no patent. All I've got is the trademark.
0:36:17 > 0:36:19Sort of kills it, really.
0:36:19 > 0:36:23- I don't agree. I know you'll say that anyone can copy it.- Yeah.
0:36:23 > 0:36:29But if you're telling me anyone can copy it, you're saying to me this is a decent product.
0:36:29 > 0:36:33That's the way I see it. Secondly, what will you call it?
0:36:33 > 0:36:38AbsBelt? That's already been taken by another company doing something different.
0:36:38 > 0:36:42- AbsStrengthener. There's so many names.- No.
0:36:42 > 0:36:45AbsPak. Come on!
0:36:48 > 0:36:53Clay's belief in his invention is clear, but is it misguided?
0:36:53 > 0:36:55Deborah Meaden wants to know.
0:36:57 > 0:37:02Clay, when it boils down to it, you have no protection on this,
0:37:02 > 0:37:07so the only thing that you're really selling is the name.
0:37:09 > 0:37:13You're asking for an investor to value this name
0:37:13 > 0:37:16at £200,000.
0:37:20 > 0:37:23It's a great name.
0:37:25 > 0:37:30Clay, I know you're hanging off AbsPak because you do love it,
0:37:30 > 0:37:34but, honestly, AbsBelt, lots of different variants.
0:37:37 > 0:37:42I do think it's so easily copied and I can't see
0:37:42 > 0:37:48- how you could make a lot of money out of this.- Can I tell you who I'm talking to at the moment?
0:37:48 > 0:37:51I'm in early talks with the MOD for the Army boys.
0:37:52 > 0:37:58They have tons of stuff flown out to them. AbsPak goes on their kit,
0:37:58 > 0:38:00I tell you what,
0:38:00 > 0:38:04that in camouflage - mustard.
0:38:04 > 0:38:07- Then... No, hear me out. - Clay...
0:38:07 > 0:38:12- Army boys. Can you imagine it? They can get down any time.- Clay...
0:38:12 > 0:38:16It's been a great experience, it's been good to meet you...
0:38:16 > 0:38:19So you're out then, yeah?
0:38:19 > 0:38:22Unfortunately, I'm going to have to say I'm out.
0:38:24 > 0:38:30It's a first taste of reality for Clay as he loses his first Dragon.
0:38:30 > 0:38:34And it doesn't look like Theo Paphitis is about to let him off the hook either.
0:38:36 > 0:38:39If this got on the shelves, I'd buy one.
0:38:39 > 0:38:45As you say, just strap it on, no messing around, not doing my neck in, it's probably good.
0:38:45 > 0:38:49The problem is how do you make money from it?
0:38:49 > 0:38:55- Sell lots of them. I think that we could sell 20 million of them worldwide.- Could we?
0:38:55 > 0:39:01And Reebok wouldn't want to sell their version? And Adidas? And Nike sell their version?
0:39:01 > 0:39:07The market, I don't have to tell you how big the market is. AbsPak is the original and the best.
0:39:07 > 0:39:09AbsPak!
0:39:09 > 0:39:15I hear what you're saying. The problem is I don't think you would sell enough of these
0:39:15 > 0:39:18to get my £50,000 back.
0:39:20 > 0:39:26And for that reason, Clay, keep fighting, but, unfortunately, I'm out.
0:39:27 > 0:39:32Clay, you've done the classic entrepreneurial thing,
0:39:32 > 0:39:38which is come up with a problem, come up with a solution. So far, textbook. Brilliant.
0:39:38 > 0:39:42But it could be copied faster than we could physically get it onto the shelves.
0:39:42 > 0:39:46- So I won't be investing, I'm afraid. - Thank you.- I'm out.
0:39:48 > 0:39:53Two more Dragons out and Clay's confidence is ebbing away.
0:39:53 > 0:39:58Duncan Bannatyne knows this market well. Has he seen something that his rivals have not?
0:39:59 > 0:40:04Clay, we sometimes sell things like this in our health clubs,
0:40:04 > 0:40:09but it would be a £5.99 product. It's not a £19.99 product.
0:40:10 > 0:40:15But even if it was, you can't protect it, you know. There's no way you can protect it.
0:40:15 > 0:40:20- So for that...- Don't you think the market's big enough?- No.
0:40:21 > 0:40:23So, reluctantly, Clay,
0:40:23 > 0:40:28- I'm sorry, but I'm out. - Thanks for the opportunity.
0:40:30 > 0:40:38I think you've heard it all. There's no point in reiterating it. There's just no investment opportunity here.
0:40:39 > 0:40:41Yeah, I...
0:40:41 > 0:40:47- I know and I can see how passionate...- No, I appreciate... - I've got to be honest with you.
0:40:47 > 0:40:52I've got to tell you the truth. I think you've got to be a bit more innovative,
0:40:52 > 0:40:57think of something else and come back next year.
0:40:57 > 0:40:59So I'm out. But good luck.
0:40:59 > 0:41:01It's hard to take,
0:41:01 > 0:41:04but the cruel reality of it is
0:41:04 > 0:41:08I'm hearing you. I've got to take that on the chin.
0:41:08 > 0:41:12Cheers. Take care, God bless. It's been emotional.
0:41:13 > 0:41:18Lessons learned, perhaps, but no cash. Clay leaves with nothing.
0:41:18 > 0:41:25- What a great character. He's the kind of salesman you need in your company.- Absolutely, yeah.
0:41:28 > 0:41:35Others who tried and failed in the Den included Warrington chip shop owner Osman Gulum
0:41:35 > 0:41:39who had a surprise in store for the Dragons.
0:41:40 > 0:41:47Flower Fountain uses a blast of air to launch fresh petals and confetti into the atmosphere,
0:41:47 > 0:41:49to make a celebratory moment.
0:41:49 > 0:41:53These multi-millionaires are well-versed in spectacular finales.
0:41:59 > 0:42:03I was just disappointed by the climax.
0:42:03 > 0:42:07What made you want to do this? There must be a reason.
0:42:07 > 0:42:13I start to watch Dragons' Den since 2007 and I wanted to come work with you guys
0:42:13 > 0:42:19- and I started an idea... - So it's our fault?!- No. You make me invent this. I love you all.
0:42:19 > 0:42:25Inspirational, maybe, but these hard-nosed inventors don't make decisions based on flattery alone.
0:42:25 > 0:42:30- Which is the patentable step? - The patent is the remote control.
0:42:30 > 0:42:34- Have you got a patent or you've applied?- Patent pending.
0:42:34 > 0:42:36I'd be surprised if you get that.
0:42:36 > 0:42:42I would try it in the garden of one of my hotels, but it would have to be a lot more spectacular.
0:42:42 > 0:42:47- I can't invest in this. I'm out. - Thank you very much for your time.
0:42:48 > 0:42:52Mother and daughter Patricia Gruchy and Louise Villalon from Hampshire
0:42:52 > 0:42:56hoped they'd spotted a trend worth a £45,000 investment.
0:42:56 > 0:43:01Together we've formed a company Two Chickens And A House.
0:43:01 > 0:43:06Chickens are very fashionable, as you know, and make lovely pets.
0:43:06 > 0:43:10This bird-based business seemed lost on Hilary Devey.
0:43:10 > 0:43:16- Surely it's cheaper to go and buy half a dozen eggs.- People... - That's not the point!
0:43:16 > 0:43:22- Your own fresh eggs, straight from the chicken's bottom! - Buy free range from Sainsbury's!
0:43:22 > 0:43:27Fresh eggs, yes, but that wasn't the issue for Duncan Bannatyne.
0:43:27 > 0:43:31You said chickens have become very fashionable "as you know".
0:43:31 > 0:43:35That's the one piece of fashion that seems to have passed me by.
0:43:35 > 0:43:41- People are going mad for chickens. - I don't know anyone who's got chickens!
0:43:41 > 0:43:43Yes, you do!
0:43:43 > 0:43:50It was left to resident chicken expert Deborah Meaden to sum up the mood in the Den.
0:43:50 > 0:43:56This is something a lot of people can make. This market has been pretty much saturated.
0:43:56 > 0:44:01- So I won't be investing. I'm out. - Thank you.
0:44:01 > 0:44:05- What are the chickens called? - Oh, well, Hilary and Deborah.
0:44:06 > 0:44:09- Thanks for coming. - Thank you, ladies.
0:44:12 > 0:44:18The fast-paced worlds of fashion and technology are both notoriously hard to crack.
0:44:18 > 0:44:22Combining the two, then, has got to be hard to crack squared.
0:44:22 > 0:44:29It hasn't put our next entrepreneurs off - Lewis Blitz and James and Richard Gold, from North London.
0:44:53 > 0:44:57Hi. I'm Lewis. These are my business partners, James and Richard.
0:44:57 > 0:45:02We're here today to ask for £120,000 investment for 10% of our company.
0:45:02 > 0:45:06About two years ago, I feel I spotted a gap in the market.
0:45:06 > 0:45:12I'd just bought a new phone and wanted a cover to protect it and look good, too.
0:45:12 > 0:45:15Everything I found was uninspiring and overpriced.
0:45:15 > 0:45:22After speaking, we believed there was an opportunity to make tech product a little more exciting.
0:45:22 > 0:45:29So we launched Skinnydip, a brand of accessories that merges fashion and technology.
0:45:29 > 0:45:35Working with young, up-and-coming artists and fashion designers, we created a range of fun cases
0:45:35 > 0:45:41- which we began supplying to high street fashion retailers. - In 18 months' trading,
0:45:41 > 0:45:48Skinnydip has turned over over £500,000 and has sold over 200,000 products.
0:45:48 > 0:45:55Some of our most successful lines include beanie headphones, ear muff headphones and printed headphones.
0:45:55 > 0:46:02We believe we're the only brand catering for the fashion-conscious consumer in high street retailers.
0:46:02 > 0:46:09Thank you for listening to us and we hope that you jump in and Skinnydip with us.
0:46:11 > 0:46:16A promising pitch from Lewis Blitz and his best friends, Richard and James Gold,
0:46:16 > 0:46:22from Golders Green. In exchange for 10% of their burgeoning accessories business,
0:46:22 > 0:46:27they want a £120,000 investment. It's an area Peter Jones knows well,
0:46:27 > 0:46:31but it's not their product that's caught his attention.
0:46:32 > 0:46:35- Hi, guys.- Hi.
0:46:35 > 0:46:42I was very intrigued because whilst you were doing your pitch, James was miming it.
0:46:42 > 0:46:47Oh, no! Oh, no. My mum's going to kill me.
0:46:47 > 0:46:53- Do you do that a lot? - All day long! At speeches. I'll speak and he just...
0:46:53 > 0:46:58It's so embarrassing. I'm quite good at learning stuff and I learnt the whole pitch
0:46:58 > 0:47:05in case, for whatever reason, Lewis or Richard wouldn't remember it and I could stand in and do it.
0:47:05 > 0:47:07- Perfect, perfect timing.- Yeah.
0:47:07 > 0:47:14- So where does Skinnydip come from? - When we came up with the concept, we didn't know what the name was,
0:47:14 > 0:47:18but we understood the ideals of it. To be fun, young, creative.
0:47:18 > 0:47:24It took us a long time, but once we came up with the name, we all immediately knew.
0:47:24 > 0:47:29If I was to say you need to change the brand to be successful, what would you say?
0:47:31 > 0:47:36I think we're very proud of the brand. We have a lot of work to do,
0:47:36 > 0:47:41but that's where the expertise we could get from working alongside one of you guys
0:47:41 > 0:47:48can take the brand to the next level. We're not averse to change, but not to impact on our values.
0:47:48 > 0:47:53As long as it doesn't change that, we'd welcome any of your suggestions.
0:47:53 > 0:47:56James, can I say...? Well done.
0:47:56 > 0:48:00Best answer in the Den for a very long time.
0:48:03 > 0:48:08Compliments abound as the trio settle quickly into the Den,
0:48:08 > 0:48:14but Hilary Devey is keen to find out if there's substance behind the smooth-talking graduates.
0:48:14 > 0:48:19Now you've valued your company at £1.2 million.
0:48:19 > 0:48:22- Yes.- How do you derive that valuation?
0:48:22 > 0:48:29- Em, we derive that valuation from our actual and future projections. - Go on. Talk us through that.
0:48:29 > 0:48:362012, we estimate we're going to turn over £1 million. We think we'll make a net profit of £315,000.
0:48:36 > 0:48:39And by 2014,
0:48:39 > 0:48:43our estimated turnover is £3.3 million
0:48:43 > 0:48:46with a net profit of £1.1 million.
0:48:46 > 0:48:52- How certain and why? - We've based our projections on our current customers.
0:48:52 > 0:49:00We supply 13 major retailers in the country. Debenhams, Next, Republic, River Island...
0:49:00 > 0:49:06- Harvey Nichols.- Harvey Nichols. And we've just started to supply Tesco as well.
0:49:06 > 0:49:07Mm.
0:49:09 > 0:49:12Guys, how much do you owe in the business?
0:49:12 > 0:49:15- We owe nothing. - Do you have an overdraft?- We don't.
0:49:15 > 0:49:22- Do you have a bank account?! How have you funded this, then? - We initially started with £45,000.
0:49:22 > 0:49:27That was every penny we'd had from savings. That went into funding our first order.
0:49:27 > 0:49:31- Every penny got reinvested. - So where do you operate from now?
0:49:31 > 0:49:39We found a warehouse in Wembley that was deserted. We cleaned the office out, we didn't have carpet...
0:49:39 > 0:49:43- And how many staff do you employ? - Not one. We do it all ourselves.
0:49:43 > 0:49:45- That's it?- Yeah.
0:49:47 > 0:49:54The Dragons look enthralled by the trio, but they have yet to receive an offer of investment.
0:49:54 > 0:49:59Now marketing expert Deborah Meaden wants to take a different tack.
0:49:59 > 0:50:02So, guys, hi. I'm Deborah.
0:50:02 > 0:50:07Who do you think, then, is your closest competitor?
0:50:07 > 0:50:14It's going to sound a bit of a cliche answer, but we don't feel anyone is doing what we're doing.
0:50:14 > 0:50:20There are loads of companies doing headphones, phone cases, but no one has packaged it under one brand
0:50:20 > 0:50:26- and is supplying it to fashion retailers.- So when you sell in, are you selling in the package?
0:50:26 > 0:50:32- Or are people buying lines from you? - It depends. Some retailers, Debenhams for instance,
0:50:32 > 0:50:35M&Co, a few have actually bought display units from us.
0:50:35 > 0:50:39River Island is a strange one. It's slowly growing with them
0:50:39 > 0:50:45and now for this Christmas they're looking at doing a full product range.
0:50:46 > 0:50:51- Do you know my background in this at all?- We've done a bit of research.
0:50:51 > 0:50:58You know I'm involved with a fashion house. It was all about clothing, but then we discovered headphones.
0:50:58 > 0:51:04Now they're more than half of our business, so I absolutely get this product.
0:51:06 > 0:51:09So I'm going to make you an offer.
0:51:10 > 0:51:14You guys need to remain motivated.
0:51:14 > 0:51:19- Yes.- You still need the lion's share of the business.
0:51:20 > 0:51:24So I'm going to offer you all of the money
0:51:24 > 0:51:29and I will be seeking a shareholders' agreement
0:51:29 > 0:51:33that gives me the rights as a 25% shareholder,
0:51:33 > 0:51:35but...
0:51:37 > 0:51:43- I want 20% of the business. - That's a bit tactical, isn't it? - PETER: A bit tactical.
0:51:43 > 0:51:47Thank you very much for your offer. Thank you.
0:51:47 > 0:51:4920%(!)
0:51:50 > 0:51:54In a move designed to outmanoeuvre her rivals,
0:51:54 > 0:52:00Deborah Meaden has devised a way of combining equal ownership with a more attractive equity offer.
0:52:00 > 0:52:04Will Duncan Bannatyne choose to compete?
0:52:06 > 0:52:13Em, gentlemen, I was going to make you an offer and then Deborah made you an offer for 20%.
0:52:15 > 0:52:21- So although you guys are fantastic and I'd love to work with you... - Thank you very much.- ..I'm out.
0:52:24 > 0:52:26I think
0:52:26 > 0:52:29I'd also struggle for 20%.
0:52:31 > 0:52:35Deborah's made you an excellent offer.
0:52:35 > 0:52:37I'm out.
0:52:38 > 0:52:41Deborah Meaden's tactics look to be working.
0:52:41 > 0:52:47She may have outfoxed two of her rival investors, but there are still two Dragons to declare.
0:52:50 > 0:52:56- What are the things that you're not good at?- Well, I think we all have strengths in different areas.
0:52:56 > 0:53:02Me and James have known each other since we were 10. We're different characters, but work well together.
0:53:02 > 0:53:09And Richard has always been a close friend. We focus on the creative side, while James is meticulous.
0:53:09 > 0:53:12Between us, we cover all the areas.
0:53:12 > 0:53:20If I could just add, I do think this market is incredibly tough. We don't shirk away from that.
0:53:20 > 0:53:24We're more than determined to make this business successful.
0:53:28 > 0:53:30Deborah's offered 20%,
0:53:31 > 0:53:34which is annoying, actually.
0:53:40 > 0:53:43I'm going to make you an offer.
0:53:46 > 0:53:48The whole £120,000,
0:53:53 > 0:53:56but I want 30% of the business.
0:53:57 > 0:53:59However,
0:54:00 > 0:54:05the minute I get my money back, I will drop down and become an equal partner with you.
0:54:05 > 0:54:08- Thank you very much.- Thank you.
0:54:14 > 0:54:17Look... you three I could work with.
0:54:17 > 0:54:20I think you're better than good.
0:54:21 > 0:54:25Using my distribution network,
0:54:25 > 0:54:30contacts, we could make so many things happen.
0:54:31 > 0:54:33Em, I'll give you all the money.
0:54:33 > 0:54:35For 25%.
0:54:35 > 0:54:39- Thank you very much. - Thank you.
0:54:39 > 0:54:42Do you mind if we just have a...?
0:54:46 > 0:54:52It's decision time for the three entrepreneurs with three different equity offers
0:54:52 > 0:54:55from three well-connected Dragons.
0:54:57 > 0:55:00Are the trio now in need of a tactic of their own?
0:55:10 > 0:55:17Em, we'd love to work with any of you, but could I ask what would you do for the brand?
0:55:19 > 0:55:21That's...
0:55:21 > 0:55:28That's quite a difficult one to answer until I know what you need.
0:55:28 > 0:55:30Right.
0:55:31 > 0:55:35I personally think that the brand isn't good enough.
0:55:35 > 0:55:40Well, hold on a minute. You're nodding. Do you agree with that?
0:55:40 > 0:55:45- I really think we'd have to sit down and discuss it in a lot more detail. - Exactly.
0:55:45 > 0:55:51It's easy to criticise. What Deborah said was meaningless to me, but I didn't criticise it.
0:55:51 > 0:55:55- It's a hard question to ask. - That's exactly what I said, Peter.
0:56:05 > 0:56:09Theo and Peter, would you be prepared to come down to Deborah's 20%?
0:56:14 > 0:56:16I'm going to need 25%.
0:56:17 > 0:56:20I'm not sure that you're seeing
0:56:20 > 0:56:26the bigger opportunity of what you are, potentially, minutes away from missing.
0:56:26 > 0:56:29And it worries me a little bit.
0:56:33 > 0:56:37- I'm sorry... - Thank you.
0:56:38 > 0:56:41JAMES: Three offers.
0:56:42 > 0:56:46Deborah's is the lowest percentage. Peter...
0:56:48 > 0:56:50Theo, how much time can he give?
0:57:04 > 0:57:08Em...we'd like to thank you all very much.
0:57:08 > 0:57:13In an ideal world, we'd like to accept all of your offers.
0:57:14 > 0:57:19We've had a long think about it. So, em...
0:57:21 > 0:57:26I think, Peter, we'd like to accept your offer. Thank you, Deborah and Theo.
0:57:26 > 0:57:29- Well done.- Thank you.
0:57:29 > 0:57:33Lewis, Richard and James have done it. It was a tense negotiation,
0:57:33 > 0:57:38but they leave with a well-connected new business partner on board.
0:57:40 > 0:57:42We've never made a harder decision.
0:57:42 > 0:57:47- We wanted to take all three, but we wouldn't have a business! - It was unbelievable.
0:57:47 > 0:57:52You had to weigh up whether it was equity or what you got from that.
0:57:52 > 0:57:55I think we made the right decision.
0:58:02 > 0:58:06Well, it's been a remarkable first day back in the Den.
0:58:06 > 0:58:11James, Richard and Lewis displayed a perfect mix of confidence and passion
0:58:11 > 0:58:15that led to three Dragons competing to invest.
0:58:15 > 0:58:20But what we saw was that their charm was of little use to them in the negotiations.
0:58:20 > 0:58:24In the Den, deals are always based on cold, hard facts and numbers.
0:58:24 > 0:58:31To get more insight into why the three friends went with Peter Jones' offer over his rivals,
0:58:31 > 0:58:34just press the red button now. Goodbye.
0:58:35 > 0:58:41- Next week in the Den: - It's not just my foot that's itching. I'm getting frustrated.
0:58:41 > 0:58:44I think it will drop off a cliff.
0:58:44 > 0:58:47A complete and utter waste of time.
0:58:47 > 0:58:51It beggars belief that you can't remember basic numbers.
0:58:51 > 0:58:54- HILARY LAUGHS - Is that fun, Peter?
0:58:54 > 0:58:56Georgia!
0:58:56 > 0:58:59So it's £100,000 for the hat?
0:58:59 > 0:59:01You might get five offers.
0:59:15 > 0:59:17Subtitles by Red Bee Media Ltd