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 > 0:00:35They're about to make or break the dreams
0:00:35 > 0:00:37of dozens of budding entrepreneurs.
0:00:39 > 0:00:43Whoa, whoa, whoa, whoa, whoa! It's my money you're talking about.
0:00:43 > 0:00:45Frankly, you've done it wrong.
0:00:45 > 0:00:47In my chair, why would you invest?
0:00:47 > 0:00:49It would be, actually, crazy of me
0:00:49 > 0:00:53to miss an opportunity if there was an opportunity there.
0:00:53 > 0:00:54Simple.
0:01:01 > 0:01:06The multi-millionaire investors have each built up their fortunes from scratch.
0:01:09 > 0:01:11Retail magnate Theo Paphitis.
0:01:13 > 0:01:16Hotel and health club owner Duncan Bannatyne.
0:01:17 > 0:01:19Leisure industry expert Deborah Meaden.
0:01:20 > 0:01:23Queen of logistics Hilary Devey.
0:01:24 > 0:01:26And telecoms giant Peter Jones.
0:01:27 > 0:01:31The Dragons have the credentials, the contacts, the commitment
0:01:31 > 0:01:33and the cash ready to invest,
0:01:33 > 0:01:36but only in the right business.
0:01:36 > 0:01:38Will any of these hopeful entrepreneurs
0:01:38 > 0:01:40walk away with their money?
0:01:50 > 0:01:52Welcome to Dragons' Den.
0:01:52 > 0:01:56After 11 weeks of drama and revelation in the Den,
0:01:56 > 0:01:58the series is drawing to a close.
0:01:58 > 0:02:02This year's entrepreneurs have one final chance to descend the stairs
0:02:02 > 0:02:07and face our famous financiers in what could be a life-changing encounter.
0:02:07 > 0:02:11Will our last batch of cash hungry hopefuls have what it takes
0:02:11 > 0:02:13to convince the Dragons to invest?
0:02:40 > 0:02:43Hi, my name is Naomi and this is my business partner Helen McAvoy.
0:02:43 > 0:02:45We're here today to ask for 80,000
0:02:45 > 0:02:50for an 8% stake in our innovative and exciting new brand Rocktails.
0:02:50 > 0:02:54Rocktails is a frozen cocktail and inside each of these double-serve pods
0:02:54 > 0:02:57is a unique bend of fruit and vodka.
0:02:57 > 0:03:00They're 10% ABV and become in three flavours -
0:03:00 > 0:03:03Frostberry, Coolcumber and Arctic Passion.
0:03:03 > 0:03:05They're convenient, they're super-easy -
0:03:05 > 0:03:08you simply freeze, leave, squeeze.
0:03:08 > 0:03:09It's an innovative product
0:03:09 > 0:03:12and there's nothing like it in the UK or European market.
0:03:12 > 0:03:18We've got other products, flavours and pack sizes in the pipeline.
0:03:18 > 0:03:22We are focusing at the minute on the UK market to really build our brand here,
0:03:22 > 0:03:24before we go internationally in 2014.
0:03:24 > 0:03:26We'd like to save you some Rocktails now to try
0:03:26 > 0:03:29and we'd welcome any questions that you might have.
0:03:32 > 0:03:35A pitch to get the Dragon mouths watering -
0:03:35 > 0:03:38but will the 8% equity on offer be as appetising?
0:03:38 > 0:03:43London-based entrepreneurs Naomi Kibble and Helen McAvoy certainly think so -
0:03:43 > 0:03:48and need an £80,000 investment in their new brand of frozen cocktails.
0:03:48 > 0:03:50Ooh, that's lovely.
0:03:50 > 0:03:52Deborah Meaden looks impressed.
0:03:54 > 0:03:58That's delicious. Absolutely delicious. Er...
0:03:58 > 0:04:01So, you've got the product. Are you selling?
0:04:01 > 0:04:03We've sold 2,500 units.
0:04:03 > 0:04:07- And what does that mean in money terms?- £6,000 turnover.
0:04:07 > 0:04:10And where did you sell those 2,500 units?
0:04:10 > 0:04:15We've sold 800 online, 1,100 between retailers and events,
0:04:15 > 0:04:19and we've sold 600 in the supermarket that we're in.
0:04:19 > 0:04:24So, the event business I get but I guess your model is going to be
0:04:24 > 0:04:26based on you being able to sell it to a wider market,
0:04:26 > 0:04:30- so I'm going to focus a bit on the supermarket.- OK. - So can you talk me through that?
0:04:30 > 0:04:32What happened was when we originally approached them,
0:04:32 > 0:04:36they said that this has got potential for a national order.
0:04:36 > 0:04:39But obviously, with no trading history, we started regionally.
0:04:39 > 0:04:40What was the initial order?
0:04:40 > 0:04:44We only had a small order to start with - just over 100 units -
0:04:44 > 0:04:47but they sold out so we had to restock quite quickly.
0:04:47 > 0:04:50- Which supermarket?- Sainsbury's.- OK.
0:04:52 > 0:04:57A tasty product, a deal with a major multiple and some assured answers.
0:04:57 > 0:05:00It's a strong opening for the two friends.
0:05:00 > 0:05:03Peter Jones looks to have something on his mind.
0:05:05 > 0:05:08- PETER:- OK, so you're offering a very low percentage.
0:05:08 > 0:05:10- On the basis that you've sold £6,000...- Mm-hm.
0:05:10 > 0:05:14..why are you valuing your business at such a large amount of money?
0:05:14 > 0:05:17The turnover that we project by year three is 1.2 million.
0:05:17 > 0:05:22Yeah, but nobody normally invests in a projection - they invest in the reality of what's today.
0:05:22 > 0:05:26- Why have you picked 8%?- Well, it values our business at £1 million.
0:05:26 > 0:05:31- Yeah.- And we feel that that's a fair valuation for the potential in the market.
0:05:31 > 0:05:34- THEO:- Ladies, if you want to be treated seriously,
0:05:34 > 0:05:36- you're going to have to stand there now...- Yep.
0:05:36 > 0:05:39..and justify your valuation.
0:05:39 > 0:05:44We've already received some investment and it was valuing our business at the same amount.
0:05:44 > 0:05:48- And that's what we're using our money...- Right. Talk to me about...
0:05:48 > 0:05:51Well, talk to me about the corporate structure, then.
0:05:51 > 0:05:56- Who owns what shares?- So, Naomi and I own 85% between us. They own 15%.
0:05:56 > 0:06:00- And how much did they put in for their 15%?- 150,000.
0:06:04 > 0:06:06A good retort from the pair,
0:06:06 > 0:06:11who are handling the tricky financial questioning with some aplomb.
0:06:11 > 0:06:13But Hilary Devey wants to take a different tack.
0:06:17 > 0:06:18Who's going to buy it...
0:06:20 > 0:06:23..when you can buy ready-made cocktails?
0:06:23 > 0:06:26In fact, I've got a passion for pina colada...
0:06:27 > 0:06:32..and you can buy it in little cans and they're very good.
0:06:32 > 0:06:35This is one of the big things that came out of our focus groups -
0:06:35 > 0:06:37the cocktails that you're talking about,
0:06:37 > 0:06:42a lot of them are pre-mixed, sort of, alcopop-style cocktails.
0:06:42 > 0:06:45This is a bar-quality, bar-strength cocktail.
0:06:45 > 0:06:50Do you not think that the record of sales just...
0:06:50 > 0:06:52totally kills what you're trying to say?
0:06:52 > 0:06:54I think this is what we're here to get -
0:06:54 > 0:06:56some investment to market the product.
0:06:56 > 0:06:59Cocktails are on a massive trend.
0:06:59 > 0:07:04They're growing exponentially, so we saw the gap in the market and
0:07:04 > 0:07:08sort of crafted the product around that to suit the consumer needs.
0:07:11 > 0:07:13I don't think this product will sell
0:07:13 > 0:07:15in the volume that you think it will.
0:07:17 > 0:07:19And therefore, I'm not going to waste your time
0:07:19 > 0:07:21and I'm going to declare myself out.
0:07:25 > 0:07:30A first setback for Naomi and Helen, as they lose their first Dragon.
0:07:30 > 0:07:33And Deborah Meaden has made up her mind, too.
0:07:35 > 0:07:39There's lots of stuff I like about this. This is a different product.
0:07:39 > 0:07:42This isn't the same as a product in the can - it's a frozen product.
0:07:42 > 0:07:43That's its USP.
0:07:45 > 0:07:48My worry is the sales.
0:07:48 > 0:07:51And do you know, I'd almost have been happier
0:07:51 > 0:07:55if you haven't got yourself into a major supermarket chain,
0:07:55 > 0:07:59because they've had an experience that isn't super.
0:07:59 > 0:08:01When they like a product, boy can they get it out there,
0:08:01 > 0:08:04boy can they latch onto it.
0:08:04 > 0:08:06I'm not saying stop it, I'm just saying I'm not convinced
0:08:06 > 0:08:11there's the scale of the market you think there is.
0:08:11 > 0:08:13So, I'm afraid I won't be investing and I'm out.
0:08:13 > 0:08:15Thank you for your time.
0:08:16 > 0:08:19Girls, I really want to encourage you to be entrepreneurial
0:08:19 > 0:08:21and it's brilliant you're here.
0:08:21 > 0:08:27But the market for this, in volume to be a business, does not exist.
0:08:27 > 0:08:32- They... Can I interject?- You're going to anyway.- They are there.
0:08:32 > 0:08:34You look at the US, for instance -
0:08:34 > 0:08:36this is a product that is huge in the US
0:08:36 > 0:08:40and we're the first on the market in the UK with a product of this nature.
0:08:41 > 0:08:46OK. You've got the beginnings of something special as people.
0:08:47 > 0:08:50What you haven't got is experience.
0:08:52 > 0:08:55You will make your money somewhere else, at some stage -
0:08:55 > 0:08:56I'm sure of that.
0:08:58 > 0:09:02But I can't invest in this, so I'm sorry, ladies. I'm out.
0:09:06 > 0:09:09Two more Dragons walk away from the deal.
0:09:09 > 0:09:12Now only Peter Jones and Duncan Bannatyne
0:09:12 > 0:09:16can save the young entrepreneurs from complete failure in the Den.
0:09:18 > 0:09:20- PETER:- I do admire what you've done.
0:09:20 > 0:09:25But I think that there's a major issue here with the way
0:09:25 > 0:09:29that you've taken this product to market, with one of the large retailers.
0:09:29 > 0:09:32Frankly, you've done it wrong.
0:09:33 > 0:09:35And I don't want to be Mr Know All
0:09:35 > 0:09:40but I know where the pitfalls are and I know where the issues are
0:09:40 > 0:09:44for you to have a chance to grow this business.
0:09:44 > 0:09:48And sometimes, it IS about relationships, it IS about contacts.
0:09:48 > 0:09:51- Yeah. - It's about a little bit of luck.
0:09:53 > 0:09:56But I think that you coming into the Den
0:09:56 > 0:09:58and offering such a small amount of equity...
0:10:00 > 0:10:03..is where, potentially, your luck runs out.
0:10:07 > 0:10:08At the same time,
0:10:08 > 0:10:11everybody needs a little bit of luck sometimes.
0:10:14 > 0:10:16I'm going to make you an offer.
0:10:16 > 0:10:18OK.
0:10:20 > 0:10:22I'm going to offer you...
0:10:22 > 0:10:24£80,000...
0:10:26 > 0:10:29..but I'm going to make things a little bit more complicated for you.
0:10:31 > 0:10:34Because I'm going to need a pretty decent return...
0:10:35 > 0:10:37..I want 40% of the business.
0:10:45 > 0:10:47A dramatic turn of events.
0:10:47 > 0:10:52Peter Jones has offered the duo a financial lifeline, but at a cost -
0:10:52 > 0:10:56five times the equity they initially wanted to give away.
0:10:56 > 0:10:58With just one Dragon remaining,
0:10:58 > 0:11:02will Naomi and Helen be able to negotiate themselves a better deal?
0:11:05 > 0:11:10Let's list the places where you want to see a cocktail that isn't a bar.
0:11:10 > 0:11:15Hospitality. Stadiums. Er...weddings.
0:11:15 > 0:11:17Airlines. Festivals.
0:11:17 > 0:11:20So we're involved in Feastival, which is happening in Victoria Park
0:11:20 > 0:11:23and we're going to be one of the main cocktail suppliers.
0:11:23 > 0:11:26They're expecting a million people footfall over the 17 days.
0:11:27 > 0:11:29OK.
0:11:29 > 0:11:34- We...do an awful lot of weddings. - Yeah.- ..in our hotels.
0:11:36 > 0:11:41- So I buy an awful lot of alcohol. - Yeah.
0:11:41 > 0:11:43So it would be, actually, crazy of me
0:11:43 > 0:11:47to miss an opportunity to invest if there was an opportunity there.
0:11:50 > 0:11:55But this valuation of a million pounds is far too high.
0:11:58 > 0:12:01I'm going to offer you the full amount - £80,000...
0:12:02 > 0:12:04I want 40% of the company.
0:12:05 > 0:12:08So the company's worth £200,000, based on that offer.
0:12:12 > 0:12:15Can we go and... Go to the back of the room?
0:12:15 > 0:12:19- THEO:- Go to the back of the room. - OK, thanks.- Before you do, let me just tell you...
0:12:19 > 0:12:22If Peter was agreeable,
0:12:22 > 0:12:27I'd also like to share the offer with Peter so we'd get 20% each.
0:12:28 > 0:12:31So if Peter would agree to that, you've got a choice of me
0:12:31 > 0:12:33or Peter or both of us.
0:12:33 > 0:12:34Peter?
0:12:36 > 0:12:39I would actually be happy to share the offer with Duncan,
0:12:39 > 0:12:41which gives you two Dragons.
0:12:41 > 0:12:43OK, thank you.
0:12:49 > 0:12:54(I think we need to say, "Well, if this is successful, can you drop down?")
0:12:54 > 0:12:56(We want to keep the majority.)
0:13:05 > 0:13:08Er, I think that we would be...
0:13:08 > 0:13:11We're really honoured to get an offer.
0:13:11 > 0:13:13What we would like to see is, er,
0:13:13 > 0:13:16maybe relinquishing some shares if we hit a certain point.
0:13:16 > 0:13:19Our thoughts were, potentially, £1 million turnover.
0:13:19 > 0:13:23So if we hit that point, you would relinquish 10% -
0:13:23 > 0:13:28so 5% each - and you would go down to a 30% overall shareholding.
0:13:28 > 0:13:30I think if you're turning over £1 million,
0:13:30 > 0:13:33you're making an awful lot of money so you don't need 10% back
0:13:33 > 0:13:36because you're going to be very, very rich at that point.
0:13:36 > 0:13:38So I think you should accept the offer as it is -
0:13:38 > 0:13:4040%, 20% each.
0:13:42 > 0:13:44£80,000.
0:13:50 > 0:13:54I agree with Duncan, not to negotiate on the revenue point.
0:13:54 > 0:13:55But if you turn that to, say,
0:13:55 > 0:14:00"If we make half a million pounds' profit in a year," then, yeah, I would.
0:14:00 > 0:14:04There's clearly a dividend coming to Duncan and I as a result of that
0:14:04 > 0:14:07anyway, if we decide that that's the right thing for the business.
0:14:09 > 0:14:14If, obviously, Duncan would consider that on a profit basis...
0:14:14 > 0:14:16If you make 500,000, we both give you 5% back -
0:14:16 > 0:14:18is that what you're saying?
0:14:27 > 0:14:28Yep.
0:14:34 > 0:14:37- OK, yes, please. You accepting? - THEO:- That's a deal - well done.
0:14:39 > 0:14:44- Well done.- Thank you. - Naomi and Helen have done it.
0:14:44 > 0:14:48The negotiations were tense but they leave with two influential multi-millionaires
0:14:48 > 0:14:51as their new business partners.
0:14:54 > 0:14:58Now, the Den has played host to guests from all across the animal kingdom
0:14:58 > 0:15:00and this year has been no different.
0:15:00 > 0:15:03But Merseyside's Steve Forshaw smashed the record
0:15:03 > 0:15:06for bringing the most creatures into the Den at once.
0:15:06 > 0:15:11He came looking for investment in his new environmentally aware initiative.
0:15:11 > 0:15:15The bee is in a lot of trouble and in many parts of the world, it's in terminal decline.
0:15:15 > 0:15:18So we came up with a very simple idea - that we would hire bees
0:15:18 > 0:15:21to businesses, schools and private individuals.
0:15:21 > 0:15:25A solution, perhaps, to a grave global problem.
0:15:25 > 0:15:27The Dragons weren't convinced.
0:15:27 > 0:15:28Is this a trading business?
0:15:28 > 0:15:31- No, we just started two or three weeks ago.- Right.
0:15:31 > 0:15:33Have you made any money?
0:15:33 > 0:15:35- We haven't made any money as yet. - Nothing? Nothing.
0:15:35 > 0:15:40- So why am I going to treat you seriously?- You'd be amazed at...
0:15:40 > 0:15:44the interest that there is. Everybody's so fascinated with bees.
0:15:44 > 0:15:46The value it brings is priceless.
0:15:46 > 0:15:49Whoa, whoa, whoa, whoa, whoa! It's my money you're talking about!
0:15:49 > 0:15:53These multi-millionaires don't hand over their hard-earned cash easily
0:15:53 > 0:15:55and they're less inclined to do so
0:15:55 > 0:15:58if they can't see a way to make a return.
0:15:58 > 0:16:02Is it a business? Cos you've not proved it with your pitch yet.
0:16:02 > 0:16:06I think so, yeah. The majority of beekeepers that I meet are very good at keeping bees.
0:16:06 > 0:16:09They're not very good at selling the idea of keeping bees.
0:16:09 > 0:16:12With all due respect, Stephen, you're very good at keeping bees
0:16:12 > 0:16:15but you're not very good at selling the idea of keeping bees.
0:16:15 > 0:16:18- No, clearly.- So you haven't really improved anything, have you?
0:16:20 > 0:16:21A bit of well-meant criticism.
0:16:21 > 0:16:25But while the ambitious apiarist's good intentions were never in doubt,
0:16:25 > 0:16:29unfortunately for Steve, his investment dreams certainly were.
0:16:29 > 0:16:31I had two beehives.
0:16:31 > 0:16:33Unfortunately, mine were killed by wasps,
0:16:33 > 0:16:37which I have to say is more traumatic than you think.
0:16:37 > 0:16:41So I don't think it's mad because bees are reaching critical levels.
0:16:41 > 0:16:46But you have nothing that we couldn't replicate - that anybody couldn't replicate.
0:16:46 > 0:16:48- I won't be investing, so I'm out, Steve.- OK.
0:16:54 > 0:16:57When pitching a potentially revolutionary new product
0:16:57 > 0:17:01to the Dragons, it's a good idea to offer a demonstration.
0:17:01 > 0:17:04Surrey-based entrepreneur Jeff Meers brings with him
0:17:04 > 0:17:08two technicians to make sure his demo goes to plan -
0:17:08 > 0:17:11but will the Dragons see opportunity in the innovation?
0:17:27 > 0:17:31Good afternoon, ladies and gentlemen. My name is Jeff Meers.
0:17:31 > 0:17:36I'm here looking for £100,000 investment
0:17:36 > 0:17:40for a 20% equity stake in my company Carkoon.
0:17:40 > 0:17:46We've got two prototypes here and, obviously, it's a baby seat.
0:17:46 > 0:17:49The first thing I need to say about this new kind of baby seat,
0:17:49 > 0:17:52er, is that it has an air shield.
0:17:52 > 0:17:55Adults - we all have airbags in our car.
0:17:55 > 0:17:59Unfortunately, the children are just sitting there, open to the elements.
0:17:59 > 0:18:02So, I would like now to do a demonstration,
0:18:02 > 0:18:05which the technician is going to set off.
0:18:05 > 0:18:10This inflator is identical to that which is in every car that
0:18:10 > 0:18:14we all drive around in every day, so it's no different, no worse,
0:18:14 > 0:18:16which will have a bang.
0:18:16 > 0:18:20So I would urge you just to think of just covering your ears with your fingers.
0:18:25 > 0:18:26As you can see,
0:18:26 > 0:18:32this buys precious time for the baby to be rescued in an accident.
0:18:32 > 0:18:36OK. The quick-release handle is another feature of the baby seat.
0:18:36 > 0:18:40It's very important for emergency services to be able to take one action
0:18:40 > 0:18:43and actually remove the baby, OK?
0:18:43 > 0:18:46So maybe I could get Michel from Spark, our design partners,
0:18:46 > 0:18:48to demonstrate how this works.
0:18:53 > 0:18:57Click it in, swivel and it clicks again and it's rear facing.
0:18:58 > 0:19:00OK, so that's the product. Thank you.
0:19:05 > 0:19:08A safety-conscious design for the 21st century.
0:19:08 > 0:19:12Company director Jeff Meers believes his potentially life-saving prototype
0:19:12 > 0:19:15is worthy of £100,000 investment.
0:19:15 > 0:19:19In return, he's offering a 20% stake.
0:19:19 > 0:19:23Duncan Bannatyne is first to interrogate the proposition on offer.
0:19:26 > 0:19:31Jeff, how serious does the accident have to be for that to flip over?
0:19:31 > 0:19:34It's fixed by the ISOFIX to the core of the car.
0:19:34 > 0:19:37When the car has a shunt - particularly if it's a serious one -
0:19:37 > 0:19:40that will be transmitted directly through to the seat.
0:19:40 > 0:19:43Well, you have to excuse me for my ignorance.
0:19:43 > 0:19:45Explain to me, what is an ISOFIX?
0:19:45 > 0:19:47- Michel?- Yeah, I can answer that.
0:19:47 > 0:19:50A seatbelt is actually the old-fashioned way
0:19:50 > 0:19:52of connecting a car seat.
0:19:52 > 0:19:56Nowadays, the car seats are all fixed with these bases.
0:19:56 > 0:19:59ISOFIX is the current standard, which is mandatory by law for all
0:19:59 > 0:20:02new cars and has been for most car marks over the last ten years.
0:20:03 > 0:20:08OK. But the baby's strapped in. It's got its back to the...
0:20:08 > 0:20:12where the accident is. I don't really see how it actually enhances the safety of the baby.
0:20:12 > 0:20:14Well one of - ONE of -
0:20:14 > 0:20:17many factors that happen in an extreme violent car crash
0:20:17 > 0:20:21is that lots of objects go flying around within the car.
0:20:21 > 0:20:24Broken glass, pound coins - any items lying around.
0:20:24 > 0:20:26So you're saying the purpose of this
0:20:26 > 0:20:30is in case any objects are flying around that would hit the baby?
0:20:30 > 0:20:31Two elements.
0:20:31 > 0:20:37This stops fire and flying objects and the handle enables the baby seat
0:20:37 > 0:20:40to be removed quickly by the parent or emergency services.
0:20:44 > 0:20:47Sure-footed answers from the practised businessman.
0:20:47 > 0:20:49It's a good start.
0:20:49 > 0:20:53But how will he fare under scrutiny from Theo Paphitis?
0:20:55 > 0:21:00- THEO:- Jeff, let's assume that a Dragon gives you £100,000.
0:21:00 > 0:21:02What's the business plan? What's the numbers?
0:21:02 > 0:21:06We would use that £100,000 to get this to final prototype CAD designs.
0:21:06 > 0:21:08Just to quickly explain, one of the reasons
0:21:08 > 0:21:12why I want to get a Dragon involved is to actually help us find the best route to market
0:21:12 > 0:21:16because in the first instance, we can actually go to market ourselves.
0:21:16 > 0:21:20But we also have a plan whereby we work with the car-seat manufacturers.
0:21:20 > 0:21:23We've already been to two and had a tremendous response from one.
0:21:23 > 0:21:26They sent some over for us to start playing with,
0:21:26 > 0:21:28from which we produced this prototype.
0:21:28 > 0:21:31You going to be paying them a royalty for that?
0:21:31 > 0:21:34Well, there are a number of business models that we want to explore.
0:21:34 > 0:21:35We haven't made the decision.
0:21:35 > 0:21:38We've got a very good licensing agreement possibility,
0:21:38 > 0:21:40or do the whole thing ourselves.
0:21:40 > 0:21:44Obviously, at that point, we would, of course, need to raise more money.
0:21:44 > 0:21:46But if we work with that supplier...
0:21:46 > 0:21:50Jeff, I'm going to have to get a bit more detail. Talk to me about what your projections are.
0:21:50 > 0:21:54May I bring my CFO, who's my business partner, in to talk about that?
0:21:54 > 0:21:57We could let the design team go.
0:21:57 > 0:21:59- Guys, thank you for your time. - Thank you.
0:22:15 > 0:22:18- Hello.- Maybe you'd like to introduce yourself.
0:22:18 > 0:22:19My name's Peter Jones.
0:22:19 > 0:22:22- THEO CHUCKLES - Socks as well.
0:22:22 > 0:22:25- Wearing the same.- Ah!
0:22:25 > 0:22:29All right. Just give me the quick headline figures for this product.
0:22:29 > 0:22:32We have a fully documented business plan,
0:22:32 > 0:22:36which assumes that we actually raise cash
0:22:36 > 0:22:39to build the product from scratch,
0:22:39 > 0:22:42to market it, to sell it, and that -
0:22:42 > 0:22:46to be honest - requires a couple of million pounds' worth of capital.
0:22:47 > 0:22:53And year five reaches approximately £70 million -
0:22:53 > 0:22:58between 30 and 40% net margin. However...
0:22:59 > 0:23:03..the idea now is to just raise a fairly small amount of money
0:23:03 > 0:23:09and license the technology to an existing car seat company.
0:23:09 > 0:23:14The first people that we contacted in respect of that idea
0:23:14 > 0:23:16was a company called Orbit Baby Inc.
0:23:16 > 0:23:20It's an American company - very large in the States -
0:23:20 > 0:23:25and Orbit, three days ago, sent not quite a letter of intent
0:23:25 > 0:23:27but a very comfortable letter in terms of,
0:23:27 > 0:23:30"Yes, we like that strategy and we would like to do that."
0:23:30 > 0:23:34Still didn't give the numbers. Just that question and I'll shut up for the rest of the time.
0:23:34 > 0:23:36Just answer that question.
0:23:36 > 0:23:40I have not yet developed a revised financial plan
0:23:40 > 0:23:42to take account of this revised...
0:23:42 > 0:23:48- So you'd like me to give you £100,000 on a wing and a prayer? - No. Not at all.
0:23:49 > 0:23:51- DEBORAH:- Peter, can I ask you a question?- You can, certainly.
0:23:51 > 0:23:53- You're the numbers man?- I am.
0:23:53 > 0:23:56I was a bit disappointed that when Theo asked you for some numbers,
0:23:56 > 0:23:59he got lots of words but not many numbers.
0:23:59 > 0:24:04- Well, there are... - But the two million... So your two million plan -
0:24:04 > 0:24:07what would that do to any shareholding that goes in now?
0:24:07 > 0:24:10So say you reached a deal in the Den today
0:24:10 > 0:24:13and we faced you needing to raise another 1.9 million...
0:24:13 > 0:24:16Deborah, before I go into answering that,
0:24:16 > 0:24:21that is the whole point of the plan, to avoid raising £2 million.
0:24:21 > 0:24:23- So the two million plan's out of the window?- Exactly.
0:24:23 > 0:24:26- OK, let's focus on the £100,000 plan.- Yes.
0:24:26 > 0:24:30So, £100,000 - what is that going to be spent on?
0:24:30 > 0:24:34Very, very straightforward - Spark Design,
0:24:34 > 0:24:36who are the developers, who are the designers...
0:24:36 > 0:24:40- How much?- Approximately £80,000 will be to them.
0:24:40 > 0:24:45The balance will be to patents lawyers, with a few overheads.
0:24:45 > 0:24:48We're confident that for £100,000,
0:24:48 > 0:24:53we can get that to a product which Orbit can sell.
0:24:53 > 0:24:57We haven't gone through numbers of how many they can sell
0:24:57 > 0:25:02but we're confident that we could get something like a 10% margin commission.
0:25:02 > 0:25:04So the truth of the matter is,
0:25:04 > 0:25:06we don't have any idea what the return on the investment is,
0:25:06 > 0:25:09we have absolutely no idea what the size of the market is.
0:25:09 > 0:25:11I don't understand that.
0:25:12 > 0:25:16- Do you understand the dilemma you've left me with? - I do understand the dilemma.
0:25:19 > 0:25:21- THEO:- Jeff and Peter...
0:25:21 > 0:25:24To come in here just saying, "Guys, take a punt,"
0:25:24 > 0:25:28without any homework, is ridiculous.
0:25:29 > 0:25:32That's not a way to get an investor to invest.
0:25:33 > 0:25:35This is not your finest moment.
0:25:35 > 0:25:37I've got to say, I'm out.
0:25:40 > 0:25:43Strong words from a disgruntled Dragon.
0:25:43 > 0:25:47Jeff and Peter lose their first hope of investment.
0:25:47 > 0:25:50Will respite come in the form of Peter Jones?
0:25:54 > 0:25:56Peter, I think you're getting a hard time
0:25:56 > 0:25:58and I think it's not your fault.
0:25:59 > 0:26:01What you're clearly saying to me is,
0:26:01 > 0:26:04"We've got a product that we think we can license.
0:26:04 > 0:26:08"I've no idea of the income that it's going to generate."
0:26:08 > 0:26:10I find that quite honest.
0:26:10 > 0:26:13You've taken, in my opinion, an honest route to say,
0:26:13 > 0:26:16"Look, I've no idea. I really haven't an idea." Is that what you're saying?
0:26:16 > 0:26:19That's basically what we're saying because... Yes, it is.
0:26:19 > 0:26:24But there's a product that was invented in 2006 -
0:26:24 > 0:26:25not only provided a cover
0:26:25 > 0:26:28but it actually provided for the baby to take impact.
0:26:28 > 0:26:33- And I was the one who was involved with it.- OK.
0:26:33 > 0:26:38I can tell you that that has taken since 2006 and as we sit today,
0:26:38 > 0:26:42seven figures and above and it's still not fully approved.
0:26:44 > 0:26:47I'm not involved with it today... for that reason.
0:26:48 > 0:26:52I do not see that you'd be able to take a product such as this into
0:26:52 > 0:26:56the marketplace without spending a considerable amount of money.
0:26:56 > 0:27:00And that's the only reason why I'm going to say I'm out.
0:27:00 > 0:27:02- Thank you for your kind comments. - Thank you.
0:27:06 > 0:27:10Pitching to experienced investors is a risky business.
0:27:10 > 0:27:11And in this instance,
0:27:11 > 0:27:15that experience seems to have scuppered Jeff and Peter's chances.
0:27:15 > 0:27:17But there are still three Dragons left.
0:27:17 > 0:27:20Will Duncan Bannatyne find a reason to invest?
0:27:23 > 0:27:25OK, thinking about this,
0:27:25 > 0:27:29I'm a bit confused as to how all this developed and where you're going with it.
0:27:29 > 0:27:32And if I can't understand what's happening,
0:27:32 > 0:27:35then obviously I can't invest.
0:27:35 > 0:27:38So for that reason, I'm out.
0:27:40 > 0:27:43- HILARY:- Let me tell you where I am. Basically what you're saying is,
0:27:43 > 0:27:48if we like the product and we think it will sell, then we invest.
0:27:49 > 0:27:52But A - I don't like the product.
0:27:52 > 0:27:55B - I think there's adequate car seats out there.
0:27:57 > 0:28:02So on that basis, I'm afraid I find it uninvestable for me.
0:28:02 > 0:28:04So I'm very sorry but I'm also out.
0:28:08 > 0:28:10Jeff, in my chair, why would you invest?
0:28:12 > 0:28:17The only basis on which I would invest from your perspective would be if you believe
0:28:17 > 0:28:21that this could be a better and more safer car seat,
0:28:21 > 0:28:25and the belief that £100,000 would get us to two patents -
0:28:25 > 0:28:27which I think are very valuable -
0:28:27 > 0:28:31that would be fully design-ready and then we can do partnership deals.
0:28:31 > 0:28:34Jeff, Jeff, you've got it! Do you know the word you've said?
0:28:34 > 0:28:38- You've absolutely bang on got it! I've got to believe that.- Yes.
0:28:40 > 0:28:43Your job is to help me believe that.
0:28:44 > 0:28:47And that's all you've got to do with an investor.
0:28:49 > 0:28:51Which we haven't done, clearly.
0:28:53 > 0:28:55So I'm sorry, but I'm out.
0:28:56 > 0:28:59- Thank you for your consideration and comments.- Thank you.
0:29:03 > 0:29:08Dignified in defeat, Jeff and Peter leave to the sound of strong Dragon opinion
0:29:08 > 0:29:11but without the cash they badly need.
0:29:14 > 0:29:17This literally was a last-minute change in strategy.
0:29:17 > 0:29:20We failed to communicate that.
0:29:20 > 0:29:23Peter Jones obviously explained that he'd already had a failed car seat,
0:29:23 > 0:29:27so that was a little bit difficult to come back from.
0:29:27 > 0:29:30But I tell you - I'm a very determined man.
0:29:30 > 0:29:33This won't stop me or slow me down.
0:29:39 > 0:29:41Entrepreneurs are a creative lot
0:29:41 > 0:29:45and come up with all sorts of solutions to all sorts of problems.
0:29:45 > 0:29:47Aretha Solanki from South London
0:29:47 > 0:29:52hoped the Dragons would share her irritation with a specific wardrobe malfunction,
0:29:52 > 0:29:55for which she thought she had just the answer.
0:29:55 > 0:29:58Most women understand that simple movements can mean
0:29:58 > 0:30:01that your tights and leggings shift and slide out of place.
0:30:01 > 0:30:03So the proposed solution is the T Strap.
0:30:03 > 0:30:06The top end is attached to the side of the user's bra,
0:30:06 > 0:30:10- whilst the bottom end is attached the user's tights.- Can I look at one?
0:30:10 > 0:30:12Of course you can.
0:30:12 > 0:30:17A common predicament, perhaps, but one Dragon seemed to come at it from a somewhat different angle.
0:30:17 > 0:30:21I think, you know, there are some things that, in your clothing, aren't perfect.
0:30:21 > 0:30:24Sometimes my socks fall down and I have to roll them back up again.
0:30:24 > 0:30:29But it's whether or not you'd want to wear this to solve it.
0:30:29 > 0:30:32Whereas Hilary Devey wasn't convinced,
0:30:32 > 0:30:36Deborah Meaden was at least happy to explore the idea.
0:30:36 > 0:30:39Actually, I do understand that tights do move and, actually,
0:30:39 > 0:30:43sometimes you get the waistband will slip a bit and it's slightly out of line.
0:30:43 > 0:30:46But tight waistbands are really quite strong.
0:30:46 > 0:30:49So if they slip, they could really drag the side of the bra
0:30:49 > 0:30:53down with it and suddenly, you might feel comfortable around here but
0:30:53 > 0:30:56boy are you going to start feeling very uncomfortable everywhere else.
0:30:56 > 0:31:00Er, I wear these so I know that they work.
0:31:00 > 0:31:04In the end, all eyes and ears were on the Den's resident industry expert.
0:31:04 > 0:31:08In all my years in the lingerie industry,
0:31:08 > 0:31:10I've not heard this problem.
0:31:10 > 0:31:13And to be honest with you, these are detachable suspender straps
0:31:13 > 0:31:15and there's millions of them around.
0:31:15 > 0:31:19So I'm not going to invest in this product,
0:31:19 > 0:31:25but I will allow you to trial it in our stores and then we'll all know, won't we?
0:31:25 > 0:31:27- Thanks. That's great.- But...
0:31:27 > 0:31:30- I'm out.- Thank you very much. - Good luck.
0:31:30 > 0:31:32- DEBORAH:- Good luck with it. - Thank you.
0:31:33 > 0:31:35So far tonight, only one business has been deemed
0:31:35 > 0:31:38worthy of investment by the multi-millionaires.
0:31:39 > 0:31:42- OK, yes please. - That's a deal! Well done!
0:31:44 > 0:31:50Still to pitch, will any of these entrepreneurs secure the cash they badly need?
0:31:54 > 0:31:57Next up is former naval officer Mark Tilley.
0:31:57 > 0:32:00Now, he has a product that has two different uses -
0:32:00 > 0:32:02which has got to be better than one, right?
0:32:02 > 0:32:04Well, let's see what the Dragons make of it.
0:32:25 > 0:32:28Hello, Dragons. My name's Mark Tilley.
0:32:28 > 0:32:30The company is called Boatbox Ltd
0:32:30 > 0:32:36and I'm here seeking £100,000 in return for 16% - one, six - equity.
0:32:37 > 0:32:40Essentially, the product is a vehicle roof box that,
0:32:40 > 0:32:45very simply and easily, is able to be taken off the vehicle -
0:32:45 > 0:32:46off the base unit -
0:32:46 > 0:32:50in a matter of seconds, and then converts to a proper little dinghy.
0:32:56 > 0:33:00It comes as standard with the oars, the rowlocks and the seat.
0:33:00 > 0:33:05We have the ability to upsell, with an optional sailing rig
0:33:05 > 0:33:07and then an electric outboard motor.
0:33:07 > 0:33:10We're hiding under here a petrol outboard.
0:33:10 > 0:33:13Patents - I've filed a patent application.
0:33:13 > 0:33:16We've now got lawyers doing the searches, looking for prior art.
0:33:16 > 0:33:21It's early days but to date, we do believe it to be the first product of this nature in the world.
0:33:21 > 0:33:24That completes my pitch and I welcome any questions, please.
0:33:28 > 0:33:31A calm and measured pitch by Mark Tilley.
0:33:31 > 0:33:36The Dorset-based inventor badly needs a £100,000 cash injection
0:33:36 > 0:33:40in his innovative multi-purpose car roof box design.
0:33:40 > 0:33:45In return, he's prepared to give away a somewhat precise 16% share.
0:33:45 > 0:33:47Deborah Meaden looks unconvinced.
0:33:48 > 0:33:50Er...
0:33:50 > 0:33:52- why?- Why?
0:33:52 > 0:33:57Er, well, probably the easiest way to answer that is to explain where I've come up with the idea.
0:33:57 > 0:34:00Camping in Brittany, I was sat at my deckchair.
0:34:00 > 0:34:03A family from the UK turned up and they had a roof box.
0:34:03 > 0:34:06I watched them open the roof box, take out the camping equipment,
0:34:06 > 0:34:11set up their pitch for two weeks. For that two weeks, that box absolutely nothing. It was redundant.
0:34:11 > 0:34:15I thought, "With a little bit of work and a bit of tweaking, you could get some enjoyment out of that product."
0:34:15 > 0:34:17It gives it a dual purpose.
0:34:17 > 0:34:22So, basically, it's a roof rack, which already exists, er,
0:34:22 > 0:34:26which can also double up to be used as a boat.
0:34:26 > 0:34:30Yes. I think, more importantly, the price point is £595.
0:34:30 > 0:34:33I've exhibited at four international shows
0:34:33 > 0:34:36and I had no negative feedback with the product.
0:34:36 > 0:34:40The only comment I got a few times was, "I've just spent £500 on a roof box,"
0:34:40 > 0:34:44and they're quite frustrated by that because they would far rather have bought this product.
0:34:44 > 0:34:45This is a proper little boat.
0:34:49 > 0:34:53Understated, perhaps, but Mark's passion for his product is clear.
0:34:53 > 0:34:57And it seems it's a passion shared by Theo Paphitis.
0:34:58 > 0:35:00I think it's ingenious.
0:35:00 > 0:35:02If you are going camping by a lake or somewhere like that,
0:35:02 > 0:35:04it's a marvellous thing to be able to have with you
0:35:04 > 0:35:07and just play on the water, go fishing...
0:35:07 > 0:35:10- The 6 million question, though... - Mm-hm?
0:35:10 > 0:35:12Can we make money at it?
0:35:12 > 0:35:16Currently, it costs £350 to make the product.
0:35:16 > 0:35:18The reason I'm looking for the £100,000 of investment
0:35:18 > 0:35:21is so we could actually purchase our own vacuum forming machine.
0:35:21 > 0:35:24Doing that, we could take out close to £120 of cost,
0:35:24 > 0:35:27which would give me a more workable margin and enable me to go out
0:35:27 > 0:35:30and get a truly good dealer network.
0:35:30 > 0:35:32And what will that result in, financially?
0:35:32 > 0:35:37- It means in the first year, we would turn over £129,000.- Mm-hm.
0:35:37 > 0:35:42Our gross profit on that would be £54,000.
0:35:42 > 0:35:43The net would be 26.
0:35:43 > 0:35:45And the sales would come from where on that number?
0:35:45 > 0:35:48Cos that's a lot of...car boxes.
0:35:48 > 0:35:51I've got a strong order book.
0:35:51 > 0:35:54I've got 42 firm orders at the moment, which are deposited.
0:35:54 > 0:35:57We're in the process of making the first hundred.
0:35:57 > 0:36:00And the camping superstore Go Outdoors trialled the product
0:36:00 > 0:36:03and once we get the first production units, they've asked me
0:36:03 > 0:36:05to visit them in head office again for further conversations.
0:36:08 > 0:36:13Ambitious plans and a solid grasp of his market. Mark is doing well.
0:36:13 > 0:36:17But how will he fare under the questioning of Peter Jones?
0:36:18 > 0:36:24OK. You mentioned that you want 100k for 16%. Why are you...
0:36:24 > 0:36:26What's the 16%?
0:36:27 > 0:36:33I, er... At this point, I should... I have actually got an investor on board - a Norwegian investor.
0:36:33 > 0:36:38- And what they invest in the business?- They invested, last year, £30,000.- Yeah.
0:36:38 > 0:36:40And I gave him 30% of the company.
0:36:42 > 0:36:45And you want me to put in over three times that amount
0:36:45 > 0:36:47and get half that equity.
0:36:47 > 0:36:51The key point is, the money that the Norwegian chap Thomas invested
0:36:51 > 0:36:55enabled me to make the production tools. And now we've ordered the first hundred.
0:36:55 > 0:36:58- Do you regret giving him 30% for £30,000?- Absolutely.
0:36:58 > 0:37:01But at the time, it was that or call it a day.
0:37:02 > 0:37:04- DUNCAN:- Just one thing worrying me a little bit, Mark.
0:37:04 > 0:37:08Let's just suppose for a minute that somebody here offered you
0:37:08 > 0:37:10the money for something like 30%...
0:37:10 > 0:37:14- Mm-hm.- ..and that reduced your equity to 40%, how would you feel then?
0:37:14 > 0:37:18I would struggle with that, to be honest, Duncan. Er...
0:37:18 > 0:37:20I would struggle with that.
0:37:21 > 0:37:24I'm prepared to get to the point where...
0:37:24 > 0:37:28I come close to giving away 30% and I maintain 51%.
0:37:30 > 0:37:32I still don't understand the 16%.
0:37:32 > 0:37:38- 16% plus 30% is 46%...- Yes.
0:37:38 > 0:37:42- So the point is that you'll go up to 19%?- No, beyond 19.
0:37:43 > 0:37:46- So you're going to dilute the other investor without...- Correct.
0:37:46 > 0:37:48So he's willing to be diluted by 20%?
0:37:48 > 0:37:50We had a meeting at Gatwick Airport and -
0:37:50 > 0:37:55very kindly, in my view, cos I wasn't expecting him to offer to dilute - he absolutely has.
0:37:55 > 0:37:56He's a gentleman.
0:37:57 > 0:38:01Mark, when you need the money, your investor calls the shots.
0:38:01 > 0:38:04You know, you shouldn't kick yourself over giving away 30% -
0:38:04 > 0:38:07you needed £30,000, you found somebody who was going to give it to you.
0:38:07 > 0:38:09Without that, there would be no business.
0:38:09 > 0:38:14I think the issue for me lies in the structure of the deal.
0:38:14 > 0:38:17I don't think there's enough left in it,
0:38:17 > 0:38:21certainly for the kind of returns that I would want.
0:38:21 > 0:38:24For that reason, I'm afraid I won't be investing, so I'm out.
0:38:27 > 0:38:32Some reassurance for a new investor but not enough for Deborah Meaden.
0:38:32 > 0:38:34Mark loses his first Dragon
0:38:34 > 0:38:38and it looks like Duncan Bannatyne has made up his mind, too.
0:38:40 > 0:38:43Er, Mark, I see it and I like it but I just...
0:38:43 > 0:38:46I don't know how many people have got boxes
0:38:46 > 0:38:49and how many people have got boats, who want to have both.
0:38:49 > 0:38:53I've never had a box. I've had boats but never a box - never wanted one.
0:38:53 > 0:38:57Because of the recession, a lot of people are downsizing to smaller cars for the fuel efficiency
0:38:57 > 0:39:02and, of course, young families still need the space in the car - so the roof box market's actually growing.
0:39:03 > 0:39:06I think it's... It's a lovely product - it's great.
0:39:06 > 0:39:10I just don't know how much of these you could sell.
0:39:10 > 0:39:14I don't know how many people want a boat that goes on the roof of the car.
0:39:15 > 0:39:19And so I've got to say, I'm sorry, Mark, I also am out.
0:39:19 > 0:39:21Thank you very much, Duncan.
0:39:21 > 0:39:24- HILARY:- Mark, can I tell you where I am?
0:39:24 > 0:39:25I'm not particularly a boater
0:39:25 > 0:39:28but I think I probably would go out and buy that,
0:39:28 > 0:39:31to mess about on the lake and go fishing et cetera.
0:39:31 > 0:39:34And I can see how passionate you are about it.
0:39:36 > 0:39:40But unfortunately, passion doesn't necessarily create profit
0:39:40 > 0:39:43- so I'm out. - Thanks very much, Hilary. Thank you.
0:39:43 > 0:39:47- PETER:- Mark, er, it's great. It is.
0:39:48 > 0:39:51And I can see you getting your pre-orders.
0:39:51 > 0:39:53I can see you financing through a bank.
0:39:53 > 0:39:56I can see you making a decent living...
0:39:57 > 0:40:01..but I'll never, ever see my £100,000 back if I gave it to you.
0:40:01 > 0:40:05- So that's why I'm not going to invest today, Mark, and I'm out. - Thank you.
0:40:08 > 0:40:12Er...so, unfortunately, I'm your last hope.
0:40:12 > 0:40:15- That's right.- It...
0:40:15 > 0:40:18It's been great seeing this,
0:40:18 > 0:40:22and I'm a boater, as you know. I enjoy boats.
0:40:22 > 0:40:26In Spain, I've got a property there and I've got a big box.
0:40:26 > 0:40:29I think I must have paid a similar price for it.
0:40:29 > 0:40:32- And I would love to have bought this.- I hear that all the time.
0:40:32 > 0:40:34- Er... - THEO SIGHS
0:40:34 > 0:40:37Mark, what's the maximum deal
0:40:37 > 0:40:41that you are prepared to do for a new investor?
0:40:41 > 0:40:43OK, with no negotiation...
0:40:46 > 0:40:47..25%.
0:40:52 > 0:40:54That keeps my 51%.
0:40:54 > 0:40:58- That would leave Thomas at 24. - Yes, yeah.
0:41:03 > 0:41:05THEO SIGHS
0:41:07 > 0:41:08Er...
0:41:09 > 0:41:12..I am desperately keen to make you an offer.
0:41:13 > 0:41:14But...
0:41:16 > 0:41:21- ..I'm struggling to see how I put £100,000 in...- Mm-hm.
0:41:22 > 0:41:25..and end up with 25%.
0:41:31 > 0:41:33My background is in high-value yachts
0:41:33 > 0:41:38and I've never sold a product that's been so well received as this. I've never had a negative comment.
0:41:49 > 0:41:51Mark, I can't see it.
0:41:53 > 0:41:56- As much as I want to help you...- OK. - ..I can't see it. I'm sorry.
0:41:56 > 0:41:59- All right, thank you very much. - I'm out.
0:41:59 > 0:42:01Thank you very much. Thank you.
0:42:01 > 0:42:03- DUNCAN:- Thanks, Mark, good luck. - HILARY:- Good luck.
0:42:03 > 0:42:09Mark got close. He received plenty of plaudits but it was the cash he badly wanted.
0:42:09 > 0:42:11He leaves with nothing.
0:42:11 > 0:42:14I loved that! I LOVED that!
0:42:19 > 0:42:21Others who tried and failed in the Den
0:42:21 > 0:42:24included dapper Craig Amour from Essex
0:42:24 > 0:42:29with an invention he believed could pave the way to his and the Dragons' fortunes.
0:42:29 > 0:42:31If you go into your local DIY store,
0:42:31 > 0:42:34you get very helpful guidance on how to build a patio.
0:42:34 > 0:42:37It will tell you to use 10mm spacers.
0:42:37 > 0:42:39But when you go to look for them, they're not there,
0:42:39 > 0:42:45hence this extremely simple concept of bespoke paving spacers was born.
0:42:45 > 0:42:47Simple.
0:42:47 > 0:42:50Simple perhaps, but is it necessary?
0:42:50 > 0:42:53Theo Paphitis wasn't so sure.
0:42:53 > 0:42:55- Mrs P, when she lays our patio... - Yeah?
0:42:55 > 0:43:00- ..she gets big strips of wood, puts it down, lays the slabs...- Yeah.
0:43:00 > 0:43:03And it's perfect. So why would she want to use that?
0:43:03 > 0:43:05Well, because you need one at every single joint.
0:43:05 > 0:43:09No, no, it's just a long piece of wood. Every row of tiles, she just moves it.
0:43:09 > 0:43:11And she's never needed to use these.
0:43:11 > 0:43:15No, you don't, in the same way that with regards to wall tiling,
0:43:15 > 0:43:19if you go back 20 or 30 years, people used matchsticks.
0:43:19 > 0:43:21And they're fine and they work, and they still work today
0:43:21 > 0:43:23but you don't use them at all.
0:43:23 > 0:43:26They use purpose made spacers.
0:43:26 > 0:43:30A confident defence of his product, then, but sadly for Craig,
0:43:30 > 0:43:34the Dragons didn't feel so confident about its money-making potential.
0:43:34 > 0:43:37When you launch a product that is easily replicated,
0:43:37 > 0:43:41and it becomes just down to volume against cost,
0:43:41 > 0:43:45somebody such as Wickes or B&Q - these guys, as quick as you can say, "Peter Rabbit,"
0:43:45 > 0:43:47they're going to be bringing out their own product.
0:43:47 > 0:43:51I can see a market and I think you'll earn a little bit of money from it.
0:43:51 > 0:43:56- It's not sufficient for me to make a return so I'm out.- OK, Peter. Thank you.
0:44:00 > 0:44:03What do you get when you mix some fabric,
0:44:03 > 0:44:05a giant fan and an entrepreneur?
0:44:05 > 0:44:08You get the eye-catching business of John Spence,
0:44:08 > 0:44:10who is next to face the Dragons.
0:44:41 > 0:44:44Hello. My name is John Spence.
0:44:44 > 0:44:47I'm managing director of a company called Megaflatables.
0:44:47 > 0:44:51I'm here today to offer 10% of our business for a return
0:44:51 > 0:44:53of £37,500 investment.
0:44:55 > 0:44:58In the inflatable world that I live in, there's a product called
0:44:58 > 0:45:01Air Dancer that you may have seen before.
0:45:01 > 0:45:05It's a 20-foot stick guy and when you flick the fan on,
0:45:05 > 0:45:07it sends air up through the design.
0:45:07 > 0:45:09The air has to leave the product and use through the arms,
0:45:09 > 0:45:12through the head and that's why it goes a little bit crazy.
0:45:12 > 0:45:15About 18 months ago, we thought about the product
0:45:15 > 0:45:16and we changed it slightly.
0:45:16 > 0:45:19And our product the Megaflatable, when you flick our fan on,
0:45:19 > 0:45:23it sends a re-circulating motion through the design.
0:45:23 > 0:45:28What that enables us to do is to make up to 20-feet designs
0:45:28 > 0:45:30to be pretty much any design you want it to be.
0:45:30 > 0:45:34So we can make, in reason, any shape with any branding, any core messaging,
0:45:34 > 0:45:38or any colours or anything you can think of to promote your business
0:45:38 > 0:45:41and try and gain additional revenues into your company.
0:45:41 > 0:45:45If it's OK, I'm going to switch the product on.
0:45:49 > 0:45:54Immediate impact is what most businesses want when marketing their product -
0:45:54 > 0:45:58and John Spence from Essex believes his new inflatable designs provide just that.
0:45:58 > 0:46:01In exchange for 10% equity,
0:46:01 > 0:46:07he needs £37,500 to broaden his customer base.
0:46:07 > 0:46:10Theo Paphitis wants to get straight down to business.
0:46:14 > 0:46:19- Now, Megaflatables - how long has it been going for?- 18 months.
0:46:19 > 0:46:22- A fairly new pup.- You're a new pup? - Yeah.
0:46:22 > 0:46:24How much have you turned over this year?
0:46:24 > 0:46:28We've, er, turned over, er...
0:46:28 > 0:46:31120,000 revenue in the first four months of this year.
0:46:31 > 0:46:37- Right. And you're in profit?- Yes. We're... Yeah, we're just there.- OK.
0:46:37 > 0:46:42- You own it all?- I'm 50% owner of the company.- Who owns the other 50?
0:46:42 > 0:46:46- My partner, a gentleman named Kieran. - Right. So why isn't he here?
0:46:46 > 0:46:49- He is, he's outside. - What's he doing outside?
0:46:49 > 0:46:51Well, the way the company's set up is that I...
0:46:51 > 0:46:55As a company, I run everything. Kieran is more the financial side.
0:46:55 > 0:46:59- What does he do?- He owns, er, a quite large courier firm.
0:47:01 > 0:47:04- Quite large? What are they called? - Addison Lee.
0:47:05 > 0:47:07OK.
0:47:09 > 0:47:13- Get Kieran in.- Shall I get him in? - Yes, please.- OK. Thank you.
0:47:18 > 0:47:22It's a risky decision not to pitch alongside such a substantial shareholder.
0:47:22 > 0:47:26A Dragon needs to know who they might be in business with.
0:47:26 > 0:47:27Hi.
0:47:27 > 0:47:29This is Kieran.
0:47:29 > 0:47:33But will this early summoning help or hinder John's investment cause?
0:47:35 > 0:47:39- Hi.- Introduce yourself. - I'm Kieran Griffin.
0:47:39 > 0:47:42I've known John since we were five years of age.
0:47:42 > 0:47:45John came with this idea about the Megaflatables,
0:47:45 > 0:47:48which I thought was a good idea, and the figures seemed to make sense.
0:47:48 > 0:47:50How much have you put in?
0:47:50 > 0:47:52I've put in 300,000.
0:47:55 > 0:47:58- PETER:- Kieran, you've put £300,000
0:47:58 > 0:48:02into a... a childhood friend's business?
0:48:02 > 0:48:06- Yeah.- Are you willing to write that off?
0:48:06 > 0:48:08That will... I'm not willing to write it off.
0:48:08 > 0:48:12It is loaned to the company and I would love to get that back
0:48:12 > 0:48:14but I'm not looking to take it out of the company at this...
0:48:14 > 0:48:19- And how much of that 300,000 does the company have left?- Nothing.
0:48:19 > 0:48:22- Sorry?- We've invested all that money into the company
0:48:22 > 0:48:25to get it to where it is, through websites and so forth.
0:48:25 > 0:48:28- Yeah, we had stock... - Yeah, it's stock.
0:48:28 > 0:48:31So you have money still in the business,
0:48:31 > 0:48:36in the shape of either stock or assets or cash?
0:48:36 > 0:48:37- Correct.- Yes.
0:48:40 > 0:48:44The duo's need for a further £37,500
0:48:44 > 0:48:47is dwarfed by the amount invested so far.
0:48:47 > 0:48:50But at least they can demonstrate that some of that value
0:48:50 > 0:48:52remains in the company.
0:48:52 > 0:48:55However, something seems to be bothering Duncan Bannatyne.
0:48:57 > 0:49:00- Why is there no "in"?- Sorry, sir?
0:49:00 > 0:49:03- Why is there no "in"? - Why's there...?
0:49:03 > 0:49:04No "in".
0:49:07 > 0:49:11- Why is it called Megaflatables, not Mega-inflatables?- What?!
0:49:11 > 0:49:13DRAGONS CHUCKLE
0:49:13 > 0:49:17Why is there no "in"?! Did you really ask that?
0:49:17 > 0:49:21- Someone already has that as a domain name.- Yep.
0:49:21 > 0:49:25- There's a lot of small bouncy castle companies in the UK.- OK.
0:49:25 > 0:49:30What would one of your customers expect to get as a return investment if they bought one of your products?
0:49:30 > 0:49:34OK. Pizza Hut - they called it a "ticket seven" product.
0:49:34 > 0:49:38Every time our product went outside their premises, they got seven sales through that day.
0:49:38 > 0:49:43- What you're saying is, they got seven extra customers that day? - Yeah, they attract the whole thing.
0:49:43 > 0:49:47- Why would they advertise an individual product and pay for it? - To give you an example of that one,
0:49:47 > 0:49:50this is a little champagne bottle.
0:49:50 > 0:49:53So what their current campaign is - two of our products,
0:49:53 > 0:49:55either side outside the store,
0:49:55 > 0:49:57get people to look and hopefully come in and spend money.
0:49:57 > 0:50:01But we're currently working on a 20-foot muesli and 20-foot, er,
0:50:01 > 0:50:02apple juice.
0:50:02 > 0:50:05- DEBORAH:- John, it's one of those lovely things
0:50:05 > 0:50:10that's really very simple to understand. You know, so can you tell me, how much do they cost?
0:50:10 > 0:50:12The product costs us £310. We sell it...
0:50:12 > 0:50:18- Depending on the design, it's either £695 or £795.- So...
0:50:18 > 0:50:22So, basically, if I was a customer and I could buy the base unit,
0:50:22 > 0:50:26- could you change the envelope on top?- Exactly right.
0:50:26 > 0:50:27So, where we are now -
0:50:27 > 0:50:31an average month will be between 30 and 40 contracts.
0:50:31 > 0:50:38Currently, we are on track to being a kind of 1½ to £2 million a year company in the UK.
0:50:40 > 0:50:43Additional revenue streams and promising projections,
0:50:43 > 0:50:46but the assured pair are yet to receive an offer.
0:50:46 > 0:50:49Can Peter Jones see a money-making opportunity?
0:50:51 > 0:50:57- One thing that was going through my head was events.- Yup.
0:50:57 > 0:51:00Because they are spending money on displays.
0:51:00 > 0:51:03And they are pop-up displays - the aluminium ones -
0:51:03 > 0:51:06and then they go back, roll back up and they...
0:51:06 > 0:51:08- They look OK.- Yup. - Whereas these, I was thinking...
0:51:10 > 0:51:14- ..maybe one or two of them, it could work.- They do.
0:51:14 > 0:51:16We have them as a range called Location Beacons.
0:51:16 > 0:51:18So McDonald's is an example.
0:51:18 > 0:51:23They chose Location Beacons with "drive-thru", with an arrow.
0:51:23 > 0:51:24That's what they use it for.
0:51:27 > 0:51:30Kieran, have you used your contacts in your business, or would you...
0:51:30 > 0:51:34Are you willing to open up the contact base of your business for direct mail?
0:51:34 > 0:51:37Yeah, we could... I haven't but it's something that's potential.
0:51:37 > 0:51:38- But you would?- For sure, yeah.
0:51:44 > 0:51:46OK. I'm going to make you an offer.
0:51:47 > 0:51:49I will offer you...
0:51:50 > 0:51:54..£40,000 - so more than the money you've asked for...
0:51:57 > 0:51:58..but...
0:51:59 > 0:52:01..I want 25% of the business.
0:52:05 > 0:52:10Being offered more than you come in for is an unusual occurrence in the Den,
0:52:10 > 0:52:15but the equity demand is 2½ times more than John and Kieran initially wanted to give away.
0:52:15 > 0:52:20However, with four Dragons remaining, can they get closer to their original valuation?
0:52:23 > 0:52:24- HILARY:- Why 10%?
0:52:26 > 0:52:29We didn't want to price ourselves out of the market.
0:52:29 > 0:52:33We want to find a partner here today. That's what we've come to find.
0:52:33 > 0:52:36We wanted to try and make it as easy decision for you was possible.
0:52:36 > 0:52:39But you're not going to find a partner at 10%, are you?
0:52:47 > 0:52:49SHE CLICKS TEETH
0:52:54 > 0:52:57I will match Peter's offer.
0:53:00 > 0:53:02OK. Thank you.
0:53:04 > 0:53:07OK, so this is not the newest thing I've ever seen
0:53:07 > 0:53:10but you're two really smart guys and they're neat.
0:53:10 > 0:53:14- I think they'll make money, so I'm going to make you an offer.- OK.
0:53:16 > 0:53:19So I'm going to offer you all the money - £37,500...
0:53:22 > 0:53:26..and I want 20% of the business.
0:53:26 > 0:53:27Thank you.
0:53:31 > 0:53:38Dragon tactics come to the fore as a wily Deborah Meaden undercuts her rivals.
0:53:38 > 0:53:41Will Duncan Bannatyne now choose to compete?
0:53:43 > 0:53:47What I don't get is, when you pass the supermarket,
0:53:47 > 0:53:49they have big signs with their name on it.
0:53:49 > 0:53:52- So you know it's a supermarket. You know what supermarket it is.- Yes.
0:53:52 > 0:53:56So they're not going to advertise a supermarket outside a supermarket.
0:53:56 > 0:54:00I'm still not convinced of the benefit to retailers.
0:54:01 > 0:54:04Er, so, for me, it's not...
0:54:04 > 0:54:07It's not a great business investment.
0:54:09 > 0:54:10I'm out.
0:54:13 > 0:54:15Guys, I'm going to tell you where I am.
0:54:15 > 0:54:21I think there's no question in my mind this makes a statement.
0:54:21 > 0:54:27I've seen them. The fact is, it's... The novelty of it and how it then...
0:54:27 > 0:54:32The novelty dies off. I'm going to wish you luck and I'm out.
0:54:34 > 0:54:36Right. OK. Thank you, guys. Thank you.
0:54:37 > 0:54:41Three winning Dragon investors, two different investment offers
0:54:41 > 0:54:44and at least one key dilemma -
0:54:44 > 0:54:47whether to opt for more money or to give away less equity.
0:54:49 > 0:54:52A tough decision for John and Kieran.
0:55:00 > 0:55:03Er...th-thank you all very much.
0:55:03 > 0:55:09Er, we are wondering if two Dragons may be better than one Dragon
0:55:09 > 0:55:13and if any of you would be open to working with any of the others.
0:55:15 > 0:55:17I don't think there's enough equity in it.
0:55:20 > 0:55:23I think because it's such a small amount of money - it's £40,000 -
0:55:23 > 0:55:26it...wouldn't be focused, I don't think, enough
0:55:26 > 0:55:29with more than one Dragon.
0:55:38 > 0:55:42OK. Ladies, thank you very much. Really do appreciate it.
0:55:42 > 0:55:46- Peter, we'd love to accept your offer.- Wow!
0:55:46 > 0:55:47- THEO:- There you go!
0:55:47 > 0:55:51- By hook or crook, you got there. Thank you very much.- Thank you.
0:55:51 > 0:55:53John and Kieran have done it.
0:55:53 > 0:55:56When the multi-millionaires choose not to share,
0:55:56 > 0:55:59that higher stake secures more Dragon focus.
0:56:07 > 0:56:11It's the end of series ten of Dragons' Den.
0:56:11 > 0:56:14Business is actually simple. People complicate business.
0:56:14 > 0:56:16And what a series it's been!
0:56:16 > 0:56:18HE SCREAMS
0:56:18 > 0:56:1994 businesses...
0:56:21 > 0:56:22- THEO:- Not bad.
0:56:22 > 0:56:24- ..descended the stairs... - Georgia!
0:56:24 > 0:56:28..to pitch for investment, hoping to secure a badly needed cash injection...
0:56:28 > 0:56:29I've got to make you an offer.
0:56:29 > 0:56:31..and a powerful new business partner to boot.
0:56:31 > 0:56:33Do you WANT an investor?
0:56:35 > 0:56:38- Well done.- Deal done!
0:56:38 > 0:56:42A record-breaking 20 deals were agreed in the Den this year...
0:56:42 > 0:56:43You've got a deal!
0:56:43 > 0:56:48..shaking hands on an astonishing £1.75 million of investment.
0:56:48 > 0:56:52We're going to make a little fortune, you and I.
0:56:52 > 0:56:55After many months of intense and nerve-wrangling preparation,
0:56:55 > 0:56:58some of the entrepreneurs will be pretty pleased with how it all went...
0:56:58 > 0:57:01I've got a funny feeling you might end up with five offers.
0:57:01 > 0:57:04You haven't just done well. I mean, you've done remarkably well.
0:57:04 > 0:57:08..although many others may not have gone quite as originally hoped.
0:57:08 > 0:57:11Now, you're not listening to me and I buy this product.
0:57:11 > 0:57:13Do your homework.
0:57:13 > 0:57:16I'm not going to waste my words any more.
0:57:20 > 0:57:23One of us is barking mad.
0:57:23 > 0:57:25(It's not me.)
0:57:26 > 0:57:31As always, there's been a heady mix of the inventive and surprising.
0:57:31 > 0:57:35MACHINE: 'Will you take this person to be your very best friend?'
0:57:35 > 0:57:38Experiencing the Den at first hand can be quite daunting.
0:57:38 > 0:57:41- Yeah?- We'll gladly accept.
0:57:41 > 0:57:43THEY CHEER
0:57:43 > 0:57:46Much easier to watch it in a more comfortable environment.
0:57:46 > 0:57:47Told you!
0:57:47 > 0:57:49'My whole life has changed.'
0:57:49 > 0:57:52Everything's gone topsy-turvy, upside down and exciting.
0:57:54 > 0:57:57So the Den doors are now closed for business
0:57:57 > 0:58:01but not before we say a big thank you to all those brave entrepreneurs
0:58:01 > 0:58:02who applied to us this year.
0:58:03 > 0:58:05DRAGONS CHUCKLE
0:58:05 > 0:58:09I've never, ever, ever seen... What have you done?
0:58:11 > 0:58:15If you think you have what it takes to face the fearsome investors,
0:58:15 > 0:58:20why not visit our website - bbc.co.uk/dragonsden -
0:58:20 > 0:58:24where you can apply to enter the Den online.
0:58:24 > 0:58:25Goodbye.
0:58:25 > 0:58:27Later in the year on Dragons' Den...
0:58:27 > 0:58:31Hello. I'm known in the industry as Mrs Christmas.
0:58:31 > 0:58:34- Which is the Christmas one? - That's the Christmas one there.
0:58:34 > 0:58:37- Which one's the Christmas one? - That's Christmas one?
0:58:37 > 0:58:38Can I have a cup of tea, please?
0:58:38 > 0:58:41Children's jumpers. JUMPER SQUEAKS
0:58:41 > 0:58:44- Jumper dresses, dog jumpers.- Maybe I could wear one on Christmas Day.
0:58:44 > 0:58:48That's a gin punch. The green one is Sexy Twist.
0:58:48 > 0:58:51# Pull my cracker, it's Christmas. #
0:58:51 > 0:58:54Bing Crosby, Cliff Richard and Noddy Holder.
0:58:54 > 0:58:56And now we've got...you.
0:59:12 > 0:59:15Subtitles by Red Bee Media Ltd