0:00:27 > 0:00:28These are the Dragons.
0:00:29 > 0:00:32Wealthy, well-connected,
0:00:32 > 0:00:36innovative and influential.
0:00:36 > 0:00:38Over the next six weeks,
0:00:38 > 0:00:42they'll make or break the dreams of dozens of budding entrepreneurs.
0:00:43 > 0:00:45The opportunity in terms of investment
0:00:45 > 0:00:47is about as attractive as eating a rotten egg.
0:00:47 > 0:00:51There's no money to be made in that, because it's too expensive.
0:00:51 > 0:00:545% just doesn't excite me.
0:00:54 > 0:00:56We have a motto in our company.
0:00:56 > 0:00:58When an elephant sits down, get out of the way.
0:01:00 > 0:01:04He should come back. He'll kick himself if he doesn't finish this.
0:01:04 > 0:01:05He'll come back.
0:01:09 > 0:01:12Leisure and marketing expert Deborah Meaden...
0:01:13 > 0:01:15..telecoms giant Peter Jones...
0:01:17 > 0:01:20..and hotel and health club owner Duncan Bannatyne
0:01:20 > 0:01:25have between them struck deals worth more than £7 million in the Den.
0:01:27 > 0:01:31But ready to fight for the next shrewd investment is the creator
0:01:31 > 0:01:35of her own world-renowned interior design brand, Kelly Hoppen...
0:01:36 > 0:01:39..and cloud computing pioneer Piers Linney.
0:01:41 > 0:01:45The multimillionaires will give each entrepreneur just three minutes
0:01:45 > 0:01:48to pitch their idea and then interrogate them
0:01:48 > 0:01:50on every aspect of their business.
0:01:51 > 0:01:53To face them takes nerve and vision,
0:01:53 > 0:01:56so who will leave with the Dragons' money?
0:02:04 > 0:02:09Welcome to the Dragons' Den, open for business for another year.
0:02:09 > 0:02:11Quite a bit has changed.
0:02:11 > 0:02:15We have new Dragons, new dangers for entrepreneurs,
0:02:15 > 0:02:17but the quest remains the same.
0:02:17 > 0:02:20Our illustrious panel are in a search to discover
0:02:20 > 0:02:22and invest in the next big thing.
0:02:24 > 0:02:27First to face the Dragons are two expat entrepreneurs,
0:02:27 > 0:02:29Louise Ferguson and Kate Cotton.
0:02:29 > 0:02:32Their fake tanning lotion's already flying off the shelves
0:02:32 > 0:02:36in Australia, so they want to bring the product to Britain.
0:03:07 > 0:03:11# Skinny Tan, Skinny Tan Who wants a Skinny Tan?
0:03:11 > 0:03:13# I want a Skinny Tan!
0:03:13 > 0:03:16# Who wants a Skinny Tan? You want a Skinny Tan
0:03:16 > 0:03:20# I want a Skinny Tan? You want a Skinny Tan
0:03:20 > 0:03:24# Who wants a Skinny Tan? You want a Skinny Tan
0:03:24 > 0:03:26# Skinny Tan, Skinny Tan! #
0:03:29 > 0:03:31Hello, Dragons. My name's Kate Cotton.
0:03:31 > 0:03:34And my name's Louise Ferguson, and we are two of the owners
0:03:34 > 0:03:37of Australia's best-selling new tanning brand, Skinny Tan.
0:03:37 > 0:03:42Skinny Tan combines an eco-certified natural tanning active
0:03:42 > 0:03:46with naturally derived cellulite-smoothing and body-firming
0:03:46 > 0:03:49and contouring actives in the same cream.
0:03:49 > 0:03:51We believe it's this dual effect
0:03:51 > 0:03:54that makes us immediately stand out from the competition.
0:03:54 > 0:03:57We've spent six months formulating the product to be far superior
0:03:57 > 0:03:59to anything else on the market.
0:03:59 > 0:04:02So with such a superior product, we knew it was going to be a success,
0:04:02 > 0:04:06but had no idea just how quickly that was going to happen.
0:04:06 > 0:04:08We registered our company in February last year.
0:04:08 > 0:04:10In March, we were already accepted
0:04:10 > 0:04:13by Australia's biggest pharmacy retailer.
0:04:13 > 0:04:16We launched with our first advertisement on September 9th.
0:04:16 > 0:04:18Six months on from that launch,
0:04:18 > 0:04:21and we've turned over 920,000 Australian dollars.
0:04:21 > 0:04:23We believe with a Dragon investment,
0:04:23 > 0:04:27we can replicate and hopefully better our Australian success in the UK.
0:04:27 > 0:04:31Thank you for hearing us today, and we welcome any questions.
0:04:33 > 0:04:35It's a high-impact pitch from Louise and Kate,
0:04:35 > 0:04:40who want £60,000 in return for a 5% stake in their business.
0:04:44 > 0:04:48The girl in the middle looked a little bit like a Lucozade lozenge.
0:04:48 > 0:04:51- Did she?!- Lucozade lozenge!
0:04:51 > 0:04:56- Looked a bit orange to me, rather than tanned.- She looked gorgeous.
0:04:56 > 0:05:00She looked gorgeous, obviously, but she already had a bit of a tan.
0:05:00 > 0:05:05The other two were completely pale, so we had more of a blank canvas.
0:05:05 > 0:05:10- There's definitely no orange in this product.- OK.
0:05:10 > 0:05:14And are you Australian? You have a bit of a Sheila ting to you.
0:05:14 > 0:05:18We're both English, but we've lived in Australia for ten years.
0:05:18 > 0:05:21- Hello. I'm Piers.- Hi, Piers. - How did you come up with this idea?
0:05:21 > 0:05:24I've always used tanning products.
0:05:24 > 0:05:27I didn't really like them for different reasons,
0:05:27 > 0:05:30and also, using cellulite creams,
0:05:30 > 0:05:34but using the two products together can interfere, you know?
0:05:34 > 0:05:38So we were pondering the idea of a tanning product one day,
0:05:38 > 0:05:41and I said, "Look, let's just put the two together,
0:05:41 > 0:05:43"do something a little bit unique."
0:05:43 > 0:05:46I tell you what, if my abs looked anything like that,
0:05:46 > 0:05:49I'd be buying a container-load of this stuff.
0:05:49 > 0:05:52But your clever edge is, it's a self-tanning product,
0:05:52 > 0:05:57but what you're throwing into the mix is it does other stuff.
0:05:57 > 0:06:00We've only been on the shelves since September,
0:06:00 > 0:06:03we're a very new product, but so far,
0:06:03 > 0:06:06we're really, really pleased with how well it's gone.
0:06:08 > 0:06:12A confident start from the brains behind Skinny Tan.
0:06:12 > 0:06:15Peter Jones is keen to find out more
0:06:15 > 0:06:18about Louise and Kate's Australian success.
0:06:18 > 0:06:24- You said you'd generated income of 920,000 Australian dollars.- Yes.
0:06:24 > 0:06:27Could you convert that back to pounds for me?
0:06:27 > 0:06:30You just take a third off, so it'd be just over £600,000.
0:06:30 > 0:06:37- OK, £600,000 worth of sales. - Yes.- How much profit?
0:06:37 > 0:06:43- The gross profit on that is probably close to £450,000.- Wow.
0:06:43 > 0:06:46No wonder you've got smiles on your faces!
0:06:48 > 0:06:51Confident entrepreneurs who arrive in the Den
0:06:51 > 0:06:55with impressive sales figures always go down well.
0:06:55 > 0:06:57But Kelly Hoppen wants to get
0:06:57 > 0:07:01to the bottom of Louise and Kate's cellulite-busting claims.
0:07:02 > 0:07:05I do use self-tan, being as pale as I am.
0:07:05 > 0:07:09You said that a tan makes you look skinnier, which it does,
0:07:09 > 0:07:12makes you look better, for sure, but cellulite,
0:07:12 > 0:07:16it's not really proven that any cream removes cellulite.
0:07:16 > 0:07:20- It's exercise and it's good nutrition.- Of course. Sure.
0:07:20 > 0:07:23But there are clinical studies on caffeine
0:07:23 > 0:07:25for helping reduce cellulite.
0:07:25 > 0:07:31- I know, but... - Published. I mean, there are.
0:07:31 > 0:07:34We're not trying to introduce something new
0:07:34 > 0:07:36to the cellulite market.
0:07:36 > 0:07:40I think it's clever, but for me, it would be more true, I think,
0:07:40 > 0:07:41to say it's Skinny Tan,
0:07:41 > 0:07:45because you're tanned and therefore you look better with a tan.
0:07:45 > 0:07:47Yeah, well...
0:07:47 > 0:07:52I'm not sure that there's room for another tanning product,
0:07:52 > 0:07:55unless you're really going to pump a huge amount of money.
0:07:58 > 0:08:02Concerns about the amount of cash needed to crack the UK market
0:08:02 > 0:08:04have unnerved the Dragons.
0:08:05 > 0:08:07Deborah Meaden wants to establish
0:08:07 > 0:08:09whether a brand that's big down under
0:08:09 > 0:08:12would necessarily sell here.
0:08:12 > 0:08:15Business is littered with the graveyards of people who thought,
0:08:15 > 0:08:18"Fantastic, I've got the model. Now we just pick that up
0:08:18 > 0:08:21"and take it over there," and they haven't managed to do it.
0:08:21 > 0:08:22What do you know about this market?
0:08:22 > 0:08:25We've looked at the consumer and found they're similar
0:08:25 > 0:08:30and, in fact, in the UK, tanning is bigger than in Australia.
0:08:30 > 0:08:34If you've got a brand there, why not focus there, build the brand there,
0:08:34 > 0:08:37- make a huge amount of cash and then come here?- This is our home.
0:08:37 > 0:08:41We're just, bang, bang, first to market opportunity.
0:08:41 > 0:08:45If you're ever going to launch a tanner that you think you can market
0:08:45 > 0:08:50and know would be a success, now is definitely the time to do it.
0:08:52 > 0:08:57Louise and Kate have made a powerful case for expansion.
0:08:57 > 0:09:00But Peter Jones remains concerned by the high level of risk
0:09:00 > 0:09:03involved in launching a brand-new tanning product
0:09:03 > 0:09:06into an already crowded UK market.
0:09:06 > 0:09:11If you get the investment today and it doesn't work for whatever reason,
0:09:11 > 0:09:15- that is all the money gone. That's 60,000 gone.- No.
0:09:15 > 0:09:22- Why?- Because you're investing for a 5% equity share in our whole business...- That's my question.
0:09:22 > 0:09:25So I would still get, still own part of the Australian business?
0:09:25 > 0:09:28Which means we could pay your £60,000 back on that
0:09:28 > 0:09:31projected forecast on that business alone, so it's very secure.
0:09:31 > 0:09:32It's risk-free, in fact.
0:09:35 > 0:09:39The expat entrepreneurs' dramatic revelation that the equity offered
0:09:39 > 0:09:42will be in their already-profitable Australian business
0:09:42 > 0:09:45has whetted the Dragons' appetite for the deal.
0:09:45 > 0:09:48Peter Jones is first to show his hand.
0:09:50 > 0:09:51I'm going to make you an offer.
0:09:52 > 0:09:57I'm going to offer you all the £60,000,
0:09:57 > 0:10:01but I'd like 20% of your business.
0:10:01 > 0:10:04And the reason why I've asked for 20% is,
0:10:04 > 0:10:11if I do crack for you the main retailers, then it could be big.
0:10:11 > 0:10:15And if it's big, then I will have helped you create that.
0:10:15 > 0:10:17OK. Thank you.
0:10:17 > 0:10:20- Are you accepting?- What? - KELLY: Hold on a minute.
0:10:20 > 0:10:21- DEBORAH:- No!
0:10:26 > 0:10:28I'm going to make you an offer.
0:10:29 > 0:10:35Um...I'm going to offer you all of the money, but because of your
0:10:35 > 0:10:42success already in Australia, I'm going to want 15% of the business.
0:10:42 > 0:10:44OK. Thank you.
0:10:44 > 0:10:47You're undercutting Peter, Deborah?
0:10:47 > 0:10:50I'm making the offer that I think is a fair offer.
0:10:54 > 0:10:57With two offers now on the table,
0:10:57 > 0:11:00will Duncan Bannatyne be prepared to strike a deal?
0:11:02 > 0:11:065% just doesn't excite me. I need to be excited.
0:11:06 > 0:11:12How about if we keep the 5% in the business, then,
0:11:12 > 0:11:16because we've also registered in the UK, the 20% that you want,
0:11:16 > 0:11:21you can have in the UK market, to give you the drive to be...
0:11:21 > 0:11:25So you would offer a higher than 5% in the UK company?
0:11:25 > 0:11:29- Which would be a subsidiary of the Australian company?- Yes.
0:11:33 > 0:11:36I'll make you an offer for all the money
0:11:36 > 0:11:38for 10% of the Australian company
0:11:38 > 0:11:44- and 25% of the new British company. - OK. Thank you.
0:11:46 > 0:11:51The three established Dragons have all made Louise and Kate an offer,
0:11:51 > 0:11:53leaving the two newcomers to the Den
0:11:53 > 0:11:56with an opportunity to stake their claims.
0:11:57 > 0:11:59I'll make you an offer as well.
0:11:59 > 0:12:05The full 60K for 10% of the whole thing.
0:12:05 > 0:12:07- Thank you.- OK. Thank you.
0:12:11 > 0:12:14It's a highly competitive offer from Piers Linney.
0:12:14 > 0:12:18Will Kelly Hoppen be prepared to match it?
0:12:18 > 0:12:23I've built a global brand, so I have contacts all over the world.
0:12:23 > 0:12:29- Yeah.- I think I would be quite a good person to show the tan,
0:12:29 > 0:12:34and I think I could really help build this business for you.
0:12:35 > 0:12:41- I will make you the same offer as Piers, £60,000 for 10%.- OK.
0:12:41 > 0:12:42Thank you.
0:12:50 > 0:12:51I'll make you another offer.
0:12:51 > 0:12:54I think Kelly would bring a lot to the table.
0:12:54 > 0:12:58I can bring the modelling, with a bit of work!
0:12:58 > 0:13:02And what Kelly can bring, and this is very important,
0:13:02 > 0:13:04she can bring contacts, endorsements.
0:13:04 > 0:13:08So if Kelly wanted to, I'd be happy to go into it with Kelly.
0:13:08 > 0:13:09I would be happy with that, Piers.
0:13:09 > 0:13:13- So it's still 10%, and you're sharing it together?- We'll split it.
0:13:15 > 0:13:17It's a surprising twist.
0:13:17 > 0:13:19The two new Dragons have joined forces
0:13:19 > 0:13:22to beat the old guard to the deal.
0:13:22 > 0:13:25But Deborah Meaden isn't ready to concede defeat.
0:13:27 > 0:13:29I'm going to confuse you now, because,
0:13:29 > 0:13:32with all the discussions about splitting the company,
0:13:32 > 0:13:37that's happened since I made my first offer, so again I would still
0:13:37 > 0:13:43want 10% of the Australian market, and I want 20% of the UK market.
0:13:43 > 0:13:45- OK?- OK.
0:13:48 > 0:13:51With competition for the deal reaching fever pitch,
0:13:51 > 0:13:55could Peter Jones's retail contacts give him a valuable edge?
0:13:57 > 0:14:02I've got businesses that sell over £100 million of UK sterling
0:14:02 > 0:14:05of product into the retailers you want to deal with.
0:14:05 > 0:14:09I think by having me part of the business and having me in the UK,
0:14:09 > 0:14:13the amount of money you're currently making would be insignificant.
0:14:13 > 0:14:15If you believe in that, you must believe in fairy tales.
0:14:15 > 0:14:18- Any of us could do the same thing. - I don't agree!
0:14:18 > 0:14:20You can't, because you haven't done it.
0:14:24 > 0:14:26Louise and Kate's assured performance
0:14:26 > 0:14:29has raised temperatures in the Den.
0:14:29 > 0:14:32Now there's a crucial decision to be made.
0:14:34 > 0:14:37This is really, really difficult.
0:14:37 > 0:14:40Can we phone a friend and ask our advocate,
0:14:40 > 0:14:45- who's also a shareholder, to cast a vote?- Yeah, of course.- Thank you.
0:14:49 > 0:14:51- Hello.- Hi.
0:14:51 > 0:14:54To me, what I really want to do is partner with somebody who's
0:14:54 > 0:14:57got the strongest relationships with the key retailers.
0:14:57 > 0:15:01I think you're missing the point. I think we can sort that out.
0:15:01 > 0:15:05I mean, we're all well connected people, but actually what this
0:15:05 > 0:15:10needs is the PR. The marketing pull is going to make this work.
0:15:10 > 0:15:13I have such a brilliant relationship with all the magazines
0:15:13 > 0:15:17and all the press. I also have a huge celebrity client list.
0:15:17 > 0:15:20At the same time, I can ring up Boots,
0:15:20 > 0:15:22I can ring up any big department store.
0:15:22 > 0:15:26As a woman, I always have a gut feeling about what I want to do.
0:15:27 > 0:15:29I think it's a great product.
0:15:29 > 0:15:32But I'm also aware of the fact that I'm a new Dragon,
0:15:32 > 0:15:36Piers is a new Dragon, so we're fighting our corner here, you know.
0:15:36 > 0:15:38We can debate until we're blue in the face,
0:15:38 > 0:15:42but this is your business, you really need to make your minds up.
0:15:42 > 0:15:46- Absolutely.- Sorry. - We do appreciate that.
0:15:46 > 0:15:50- Do you want to go to the back of the room?- OK.
0:15:54 > 0:15:56Have Piers Linney and Kelly Hoppen done enough
0:15:56 > 0:15:59to swing negotiations in their favour?
0:15:59 > 0:16:02Or will one of the more established Dragons prevail?
0:16:04 > 0:16:05This is intense!
0:16:11 > 0:16:13We've made our decision.
0:16:13 > 0:16:16Thank you very much to all of you,
0:16:16 > 0:16:18but we're going to go with Piers and Kelly.
0:16:18 > 0:16:20Yes!
0:16:22 > 0:16:26- Thank you so much, guys. - Congratulations.- Good luck.
0:16:30 > 0:16:32Thanks ever so much, everybody.
0:16:35 > 0:16:37Success for Louise and Kate...
0:16:40 > 0:16:43..with £60,000 from two Dragon investors,
0:16:43 > 0:16:47making their 20,000-mile round trip worthwhile.
0:16:49 > 0:16:52- It's life-changing! - It's totally life-changing.
0:16:52 > 0:16:53In the last five minutes,
0:16:53 > 0:16:56our lives have probably just completely changed,
0:16:56 > 0:17:00and it's not just about getting a UK market and money, it's about...
0:17:00 > 0:17:02I don't know, this is just going to be such an incredible journey
0:17:02 > 0:17:05with those guys. I can't even... It's overwhelming.
0:17:05 > 0:17:09- It's a surreal moment.- It is!- It is!
0:17:11 > 0:17:13It's not just the entrepreneurs
0:17:13 > 0:17:16that can find the Den a surreal experience.
0:17:16 > 0:17:18What are the tingly feelings?
0:17:18 > 0:17:20- Just be quiet.- What's so funny?
0:17:20 > 0:17:24Sometimes it's the Dragons that need to pinch themselves.
0:17:26 > 0:17:32Clare Lower came in seeking £125,000 for her luxury mobile picnic hamper.
0:17:32 > 0:17:36But would her product for the super-rich prove too bizarre
0:17:36 > 0:17:39an investment even for the well-heeled Dragons?
0:17:40 > 0:17:42I love wheels. Anything you can drag - perfect.
0:17:42 > 0:17:46There's just one fundamental flaw.
0:17:46 > 0:17:48There's hardly any room to put food in.
0:17:48 > 0:17:53If it's accompanying a shooting party, people put a game curry
0:17:53 > 0:17:56in the bottom here and a celeriac mash and a braised cabbage here.
0:17:56 > 0:17:59If they've got a bothy, they can set up a picnic after people have
0:17:59 > 0:18:01come back from their winter walk,
0:18:01 > 0:18:03and they can have an intimate picnic a deux.
0:18:03 > 0:18:05Sorry. Clare, what's a bothy?
0:18:05 > 0:18:09This is like listening to a pitch in a different language.
0:18:09 > 0:18:11I need to get out more.
0:18:11 > 0:18:14At the moment, where has been your biggest market?
0:18:14 > 0:18:17The Kuwait royal family bought 50.
0:18:19 > 0:18:23Why would you have a heavy picnic golf trolley in the desert?
0:18:23 > 0:18:26They don't even have to carry their hamper, they have staff that do that.
0:18:26 > 0:18:29The weight is certainly not an issue for them.
0:18:29 > 0:18:31Did I mention the royal family bought two?
0:18:32 > 0:18:35You can tell it's not my cup of tea. I'm not going to invest.
0:18:35 > 0:18:38I'm going to say I'm out.
0:18:38 > 0:18:42The Dragons all agreed that its lack of mass-market appeal made
0:18:42 > 0:18:47Clare's mobile picnic hamper an unappetising investment.
0:18:47 > 0:18:50Thanks for the opportunity to lose all my money, Clare, but I'm out.
0:18:50 > 0:18:53- Are you sure?- Well, I'd love a picnic with you some time.
0:18:54 > 0:18:58And it was left to Kelly Hoppen to dish up some words of advice.
0:18:59 > 0:19:04Get a PR company, get yourself into Tatler, The Hill, Portrait magazine.
0:19:04 > 0:19:06The best thing that you could do
0:19:06 > 0:19:08is to exhibit in Maison et Objet in Paris,
0:19:08 > 0:19:13do an amazing space. You want to create theatre.
0:19:13 > 0:19:16And you will start to make money, but you should do it on your own.
0:19:16 > 0:19:17Thank you for your feedback.
0:19:35 > 0:19:40Next in to the Den are entrepreneurial husband and wife team, Rachel and Alta Fogel.
0:19:44 > 0:19:46The pair are hoping to secure investment
0:19:46 > 0:19:49in their new children's construction toy.
0:19:49 > 0:19:51With a current value of almost £3 billion,
0:19:51 > 0:19:56the UK toy market is undoubtedly rich in opportunity.
0:19:56 > 0:19:57But competition is fierce
0:19:57 > 0:20:01and any investment could be fraught with risk.
0:20:01 > 0:20:05Will the Dragons be prepared to take a chance on Rachel and Alta?
0:20:09 > 0:20:14- Hello, I'm Rachel Fogel... - I am Alta Fogel.- ..of Bizzy Bitz.
0:20:14 > 0:20:17Bizzy Bitz is a patented new construction toy with
0:20:17 > 0:20:22potential to become a world leader in the construction toy market.
0:20:22 > 0:20:25We've been selling locally to get some market feedback on the toy
0:20:25 > 0:20:28and a while back we got a telephone call.
0:20:28 > 0:20:31SHE MAKES A PHONE RINGING NOISE
0:20:31 > 0:20:33Hello, Bizzy Bitz, can I help you?
0:20:33 > 0:20:35"Yes, I've just bought the Bizzy Bitz
0:20:35 > 0:20:38"and I'm afraid I think you're missing a warning on the box."
0:20:38 > 0:20:40If you look carefully enough,
0:20:40 > 0:20:43you'll see that all appropriate toy testing has been done and it's safe.
0:20:43 > 0:20:47"Warning's still missing - addictive."
0:20:47 > 0:20:51Our toy is exceptionally enjoyable and fun to play with.
0:20:51 > 0:20:56Bizzy Bitz - guaranteed to keep the children busy.
0:20:58 > 0:21:01It's a playful pitch from Rachel and Alta, who are looking
0:21:01 > 0:21:07for £80,000 in return for a 10% stake in their company.
0:21:07 > 0:21:11Deborah Meaden wants to find out more about how Bizzy Bitz was born.
0:21:12 > 0:21:16It looks really colourful, it looks fantastic, actually.
0:21:16 > 0:21:17You've invented them?
0:21:17 > 0:21:20On our patent, we're both written as the inventors,
0:21:20 > 0:21:22but Alta actually worked out the system.
0:21:22 > 0:21:25OK. I say this slightly tongue-in-cheek -
0:21:25 > 0:21:27who's your biggest competitor?
0:21:27 > 0:21:31Lego is the biggest construction toy on the market -
0:21:31 > 0:21:34way above anything else.
0:21:34 > 0:21:36I would say they probably... I don't know,
0:21:36 > 0:21:40about 75% of all construction toys is Lego.
0:21:40 > 0:21:42At least 75%.
0:21:42 > 0:21:45Second biggest toy company in the world now.
0:21:45 > 0:21:46Oh, are they? Right.
0:21:46 > 0:21:53So, where is the space in this market that's so heavily
0:21:53 > 0:21:57and incredibly dominated by Lego?
0:21:58 > 0:22:00It's the only toy that you've got
0:22:00 > 0:22:04so many shapes that you can put together in so many different ways.
0:22:04 > 0:22:07I would say that if you've got 15 pieces of Lego,
0:22:07 > 0:22:10you are very limited to what you can create with it.
0:22:10 > 0:22:13If you've got 15 pieces of Bizzy Bitz, there are probably
0:22:13 > 0:22:16quite a few recognisable models that you could make with it.
0:22:16 > 0:22:19I'll tell you that a person like this was made by a three-year-old,
0:22:19 > 0:22:21the first time she had the toy.
0:22:21 > 0:22:23- Peter's tried.- I've made myself.
0:22:23 > 0:22:25It looks like me.
0:22:26 > 0:22:28Head's too small.
0:22:28 > 0:22:33It's not easy to come up with something that hasn't been done before.
0:22:33 > 0:22:36And I think you've put a lot of hard work into this.
0:22:36 > 0:22:39And I do like it.
0:22:41 > 0:22:46Bizzy Bitz certainly seems to have brought out Peter Jones's inner child.
0:22:46 > 0:22:50Over 20 years spent working with children, as well as the
0:22:50 > 0:22:54small matter of having 12 of their own, has given Rachel and Alta
0:22:54 > 0:22:58an intuitive grasp of their potential customers.
0:22:58 > 0:23:01But Deborah Meaden wanted to bring the conversation
0:23:01 > 0:23:03back around to business.
0:23:03 > 0:23:09- How much does a box sell for? - I sell this particular box for £25.
0:23:09 > 0:23:12This cost me to produce £8.
0:23:12 > 0:23:16If I sell it wholesale, I sell it for £14.
0:23:16 > 0:23:18How much of this have you got in stock?
0:23:18 > 0:23:21I have in stock roughly about 1,000 boxes.
0:23:21 > 0:23:23And how many have you sold?
0:23:25 > 0:23:30- Totally, from the day you started. - Most probably about 700.
0:23:30 > 0:23:32What I don't understand is why you haven't sold more?
0:23:32 > 0:23:35If you've got a product that you know is fantastic,
0:23:35 > 0:23:36if you've got 1,000 boxes,
0:23:36 > 0:23:39why you wouldn't actually go out and sell them?
0:23:39 > 0:23:41Well, we have sold about 700 pieces.
0:23:41 > 0:23:44Only locally, because we wanted to get as much
0:23:44 > 0:23:48feedback as possible, before we go on a larger scale.
0:23:49 > 0:23:52I mean, if the market feedback comes back, what can it say?
0:23:52 > 0:23:56It can either say, "Fantastic, sell it all over the country,"
0:23:56 > 0:23:58or, "It's rubbish."
0:23:58 > 0:24:01What... Where's the benefit in the feedback?
0:24:01 > 0:24:08We send it out to a lot of people or potential buyers and we ask them,
0:24:08 > 0:24:10"Tell me, what do you think of the product?"
0:24:10 > 0:24:15- Yeah.- And they wrote us back, "We think it is a great product,"
0:24:15 > 0:24:19and this is how far we went. We didn't... I didn't go further to...
0:24:19 > 0:24:22Why don't you say, "We've got it now, it's patented, how many do you want?"
0:24:22 > 0:24:26Cos I wanted to come up with a bit of a bigger range.
0:24:26 > 0:24:27Why?
0:24:27 > 0:24:32Because we've seen from feedback that that's what will do better for us.
0:24:33 > 0:24:36Duncan Bannatyne's irritated by Rachel and Alta's
0:24:36 > 0:24:41reluctance to bring their product to market in its current form.
0:24:41 > 0:24:43And given their lack of sales,
0:24:43 > 0:24:46fellow Dragon Kelly Hoppen wants to know just how much
0:24:46 > 0:24:50of a financial sacrifice they've had to make to keep the business afloat.
0:24:53 > 0:24:57- How much money have you actually invested in this?- About £130,000.
0:24:57 > 0:25:00Wow.
0:25:00 > 0:25:02- My goodness.- That is a lot of money.
0:25:02 > 0:25:05I would go and set up a stall in a market down Columbia Road or
0:25:05 > 0:25:07do something like that.
0:25:07 > 0:25:09You've got something big there.
0:25:09 > 0:25:12I can see any child going into a nursery or playroom
0:25:12 > 0:25:16and sitting down and wanting to play that. It looks great.
0:25:16 > 0:25:18The problem is it's not selling.
0:25:18 > 0:25:22It's not a viable proposition for me to invest, so I'm out,
0:25:22 > 0:25:23but good luck with it.
0:25:25 > 0:25:28Rachel and Alta have lost their first Dragon.
0:25:28 > 0:25:32Will Peter Jones be prepared to offer them a financial lifeline?
0:25:32 > 0:25:35I like what I've seen and I think that you've got something,
0:25:35 > 0:25:38but I don't think the money that you're asking for is enough.
0:25:38 > 0:25:40I actually think, potentially, you might find somebody
0:25:40 > 0:25:43that is willing not just to put in 80,000, but is willing
0:25:43 > 0:25:47to reinvest, because I think that's what's going to be needed
0:25:47 > 0:25:49in seeing this come to market.
0:25:49 > 0:25:52And that's the only reason why I'm not going to invest and I'm out.
0:25:54 > 0:25:57Plenty of praise for Rachel and Alta's product,
0:25:57 > 0:26:00but so far no offers of investment.
0:26:00 > 0:26:03Now, it's time for Piers Linney to have his say.
0:26:03 > 0:26:06We have a motto in our company -
0:26:06 > 0:26:08"When an elephant sits down, get out of the way."
0:26:09 > 0:26:13Now, you've already got one that's been sitting down on your market for quite a long time.
0:26:13 > 0:26:15If you go up against the big boys,
0:26:15 > 0:26:18you're going to struggle with the kind of money you are talking about.
0:26:18 > 0:26:21It's not something I could invest in.
0:26:21 > 0:26:22I'm out.
0:26:31 > 0:26:36I fully disagree with Kelly and Peter Jones -
0:26:36 > 0:26:38I'm the truthful Dragon.
0:26:38 > 0:26:40And I'm going to tell you the truth.
0:26:40 > 0:26:43I wrote down one word when I opened it and started using it.
0:26:43 > 0:26:46The word I wrote down was - "rubbish".
0:26:49 > 0:26:51And you should stop spending your money on it.
0:26:51 > 0:26:54You've spent too much on it and you're going to end up with nothing.
0:26:54 > 0:26:55- I'm out.- Fine.
0:26:56 > 0:26:59I disagree with Duncan, I don't think it's rubbish at all.
0:26:59 > 0:27:01In fact, I think it's very clever.
0:27:01 > 0:27:07I urge you - spend no more money, make no more changes and
0:27:07 > 0:27:11go and sell the remaining stock you have.
0:27:11 > 0:27:17I see no upside and I see a lot of risk in you being
0:27:17 > 0:27:23so committed to making this work that you're not thinking straight.
0:27:23 > 0:27:27I can only offer you advice and I can't offer you my money today.
0:27:29 > 0:27:31So, I'm afraid I won't be investing.
0:27:31 > 0:27:33And I'm out.
0:27:34 > 0:27:36BOTH: Thank you.
0:27:38 > 0:27:42Despite enthusiasm for their product, Rachel and Alta's
0:27:42 > 0:27:46shortage of sales and the cut-throat nature of the market in which
0:27:46 > 0:27:51they've chosen to compete, mean they walk away from the Den with nothing,
0:27:51 > 0:27:54leaving the Dragons to continue heatedly debating
0:27:54 > 0:27:56the merits of Bizzy Bitz.
0:27:56 > 0:27:59The "Truth Dragon" called it rubbish.
0:27:59 > 0:28:03It's two bits of plastic like that with this little connector on here
0:28:03 > 0:28:05and you can't really find anything to connect it to.
0:28:05 > 0:28:07It's complete and utter rubbish.
0:28:07 > 0:28:10You've got to have something in here to be able to play it - that's your issue.
0:28:18 > 0:28:21So far tonight, only one set of entrepreneurs
0:28:21 > 0:28:24has triumphed in the Den.
0:28:24 > 0:28:27We've made our decision and we're going to go with Piers and Kelly.
0:28:27 > 0:28:29Yes!
0:28:29 > 0:28:31PIERS CHUCKLES
0:28:31 > 0:28:35Will any of these enterprising individuals be able to part
0:28:35 > 0:28:37the Dragons from their hard-earned cash?
0:28:37 > 0:28:39Maths wasn't my strong point at school.
0:28:39 > 0:28:41I'm starting to realise that.
0:28:50 > 0:28:53From burgers to burritos, sandwiches to sushi,
0:28:53 > 0:28:56not to mention myriad versions of perfect fried chicken,
0:28:56 > 0:28:59there's a staggering choice of fast-food dining options
0:28:59 > 0:29:00on our high streets.
0:29:00 > 0:29:03So, question. Could there possibly be a gap
0:29:03 > 0:29:06in what appears to be an oversaturated market?
0:29:06 > 0:29:09Our next entrepreneurs believe they've found one.
0:29:38 > 0:29:40Good afternoon, Dragons.
0:29:40 > 0:29:45My name's Tayub Mushtaq, I'm the managing director of World Gourmet Restaurants Ltd -
0:29:45 > 0:29:48owners and operators of the brand, Wrap It Up.
0:29:48 > 0:29:52I'm here today seeking an investment of £500,000 for an exchange
0:29:52 > 0:29:55of 11% equity in our business.
0:29:55 > 0:30:00My name is Afnan Bashir and I am a co-founder of Wrap It Up.
0:30:02 > 0:30:07Back in 2003, when I was living in Chicago, I began to notice
0:30:07 > 0:30:11this emerging trend in the eating out sector called fast-casual,
0:30:11 > 0:30:16which basically sits in-between fast food and casual dining.
0:30:16 > 0:30:20Our research suggested that a lot of the authentic street food
0:30:20 > 0:30:25from around the world is served in a wrap form.
0:30:25 > 0:30:29Hence, we created a brand based on world gourmet wraps.
0:30:29 > 0:30:33The current UK sandwich market is worth over £6 billion -
0:30:33 > 0:30:35of which wraps account for around 4%.
0:30:35 > 0:30:40This is around £250 million per year and growing year-on-year.
0:30:40 > 0:30:42What a market. What an opportunity.
0:30:42 > 0:30:44- Shall we come and look at your wraps now, then?- Please.
0:30:44 > 0:30:46Why don't you come around here?
0:30:46 > 0:30:48A composed pitch from Tayub and Afnan,
0:30:48 > 0:30:52who are seeking the hefty half-million investment that could
0:30:52 > 0:30:56transform their handful of high-end takeaways into a household name.
0:30:56 > 0:30:57It's hot!
0:30:57 > 0:31:00It's going to take something special for the Dragons
0:31:00 > 0:31:04to buy into Wrap It Up at the company's current valuation.
0:31:04 > 0:31:08Deborah Meaden is the first to question the fast food entrepreneurs.
0:31:10 > 0:31:15I've been spending quite some time sitting with a food industry expert
0:31:15 > 0:31:19who we were only last week talking about wraps being
0:31:19 > 0:31:22the next big thing.
0:31:22 > 0:31:26This is a space that's open and it's up for grabs.
0:31:26 > 0:31:27The question is -
0:31:27 > 0:31:29why is it going to be you that's going to win this space?
0:31:29 > 0:31:37When I created the brand, we wanted to create, recreate,
0:31:37 > 0:31:39authentic street food from around the world -
0:31:39 > 0:31:41that's where the idea came from.
0:31:41 > 0:31:44So, street food's all about good quality,
0:31:44 > 0:31:47it's all about preparing it in front of the customer.
0:31:47 > 0:31:53It's all about drama and theatre. Everybody else will serve wraps.
0:31:53 > 0:31:55But they won't serve it in that way.
0:31:57 > 0:32:00It's a positive start with the entrepreneurs displaying
0:32:00 > 0:32:03a real passion for their business.
0:32:03 > 0:32:06But Piers Linney seems to have something on his mind.
0:32:07 > 0:32:08I eat this stuff all the time.
0:32:08 > 0:32:16Within 20 metres of my desk, there must be 12 to 13 businesses
0:32:16 > 0:32:20selling this kind of food or a variation on the theme.
0:32:20 > 0:32:22You've mixed together this world food,
0:32:22 > 0:32:25whereas everybody else does seem to pigeonhole themselves
0:32:25 > 0:32:28in Caribbean or Mexican, whatever it might be.
0:32:28 > 0:32:29That's the whole idea of Wrap It Up.
0:32:29 > 0:32:30You can come into our stores
0:32:30 > 0:32:34and choose a wrap from nearly every continent in the world.
0:32:34 > 0:32:37You tell me where else you go and you'll find a roti sat next to
0:32:37 > 0:32:40a burrito sat next to an Indian tandoori tikka.
0:32:42 > 0:32:46Could Tayub and Afnan have spotted a lucrative niche in the
0:32:46 > 0:32:49highly-competitive takeaway market?
0:32:49 > 0:32:52Duncan Bannatyne is eager to find out more about
0:32:52 > 0:32:54Wrap It Up's financial performance.
0:32:55 > 0:33:00- How much money did it turn over in 2010?- £680,000.
0:33:00 > 0:33:05- And what profit did it make? - Net profit of £47,000.- 2011?
0:33:05 > 0:33:11- What is your turn over and net profit?- £980,000 with a net profit of £110,000.
0:33:11 > 0:33:122012?
0:33:12 > 0:33:16Turnover of 1.3 million with a net profit of £180,000.
0:33:18 > 0:33:21Our projected turn over for this year is 1.8 million with a
0:33:21 > 0:33:23net profit of £250,000.
0:33:26 > 0:33:29A solid set of numbers, confidently delivered.
0:33:29 > 0:33:33But it's left the Dragons confused about why Tayub
0:33:33 > 0:33:36and Afnan are asking for an investment at all.
0:33:36 > 0:33:40So, now, if you're making £250,000 a year,
0:33:40 > 0:33:43why do you need to raise any money, let alone £500,000?
0:33:43 > 0:33:47We have one central kitchen which is absolutely at maximum capacity,
0:33:47 > 0:33:50there is no way we can service any further stores without
0:33:50 > 0:33:52expanding our central kitchen facility.
0:33:52 > 0:33:54Isn't this a debt deal?
0:33:54 > 0:33:57I mean, I know the banks aren't quite as friendly as they used to be...
0:33:57 > 0:34:00But this is a typical debt situation for expansion.
0:34:00 > 0:34:03Though I'm here for the money, I'm more after your expertise
0:34:03 > 0:34:06in taking this business globally.
0:34:06 > 0:34:09I see Wrap It Up as something that can sit alongside the big brands.
0:34:10 > 0:34:14Tayub certainly has no shortage of ambition and Peter Jones
0:34:14 > 0:34:19appears impressed by the detailed grasp he has of his business.
0:34:19 > 0:34:22Tayub, you present really well.
0:34:22 > 0:34:26You clearly know your numbers, which is refreshing, actually.
0:34:26 > 0:34:28When you spend 100 hours in the business every week,
0:34:28 > 0:34:32week in, week out, you know what you're paying for. That's the reason why this business...
0:34:32 > 0:34:36- And if you tell me you're 23 now, then...- Sorry?- How old are you?
0:34:36 > 0:34:39- I'm 30 years of age.- 30, yeah.
0:34:39 > 0:34:42I can tell you're working hard, because you look older than that.
0:34:42 > 0:34:43It's made you ill, hasn't it?
0:34:43 > 0:34:46I literally lost my hair, I had alopecia for two years.
0:34:46 > 0:34:48But since I've had my first child, I've taken a step back
0:34:48 > 0:34:52and I've thought, "You know what? It's not just about work and business."
0:34:52 > 0:34:56It's about family, it's about making sure that family comes first and,
0:34:56 > 0:34:59you know, I've taken time out.
0:34:59 > 0:35:01- But you're still working 100 hours a week?- No, no.
0:35:01 > 0:35:03Since October 2012, I've had a management team put in place
0:35:03 > 0:35:06and I've literally allowed myself to take the business forward
0:35:06 > 0:35:09as opposed to being involved in the nitty-gritty.
0:35:11 > 0:35:14By delegating the day-to-day management of the business,
0:35:14 > 0:35:18Tayub has allayed the Dragons' anxieties about his health.
0:35:18 > 0:35:22However, design guru Kelly Hoppen is concerned by Wrap It Up's
0:35:22 > 0:35:23lack of visual appeal.
0:35:25 > 0:35:29When you go to Thailand, you go to Mexico, it's all very beautiful,
0:35:29 > 0:35:31very colourful.
0:35:31 > 0:35:34This to me just looks like I'm driving along on the motorway
0:35:34 > 0:35:38- and it's a fast food.- So, like the brand image?- The brand image.
0:35:38 > 0:35:39To some extent, I completely agree.
0:35:39 > 0:35:42And to add to that point, let me tell you, over the last three years,
0:35:42 > 0:35:44I've spent not a penny in marketing, branding...
0:35:44 > 0:35:47Part of those funds, if they are invested,
0:35:47 > 0:35:50will be used towards improving our brand image.
0:35:50 > 0:35:52But I thought it was for kitchens?
0:35:52 > 0:35:57The £500,000 would be split around 250k for our central kitchen
0:35:57 > 0:36:00and an allocation of 30 to 40k to get some branding agencies
0:36:00 > 0:36:03in to come and revitalise and reignite the brand.
0:36:03 > 0:36:06You're in the throes of growing a business.
0:36:06 > 0:36:09Perhaps you can fix the branding, the name's not too bad.
0:36:09 > 0:36:12I think the valuation though is bonkers.
0:36:16 > 0:36:19Despite Tayub's obvious entrepreneurial zeal,
0:36:19 > 0:36:23the mood in the Den has taken a darker turn.
0:36:23 > 0:36:25Duncan Bannatyne is also concerned by the
0:36:25 > 0:36:29high valuation the duo have attached to their business.
0:36:29 > 0:36:33My head isn't calculating a value in this business of...
0:36:33 > 0:36:35It's 500,000 for 11%.
0:36:35 > 0:36:39We've taken that based on a multiple of 1.7 on our sales
0:36:39 > 0:36:42and added a premium in there for the fact that we are a growing business.
0:36:42 > 0:36:46Literally, we've scratched the surface, so we feel that if I was to
0:36:46 > 0:36:47sell this business today,
0:36:47 > 0:36:50I'm quite confident that I could achieve £4 million.
0:36:50 > 0:36:52I would value the company maybe as three,
0:36:52 > 0:36:56maybe as four times profit, so that's 600, 800,000.
0:36:56 > 0:37:00And you're asking for £500,000 for 11%.
0:37:02 > 0:37:06- You're taking a multiple of three times?- Yeah, that's the price.
0:37:06 > 0:37:08And this doesn't give me a good enough return to value
0:37:08 > 0:37:13the whole thing at enough to invest £500,000.
0:37:13 > 0:37:16- And for that reason, I'm out. - OK. No problem.
0:37:19 > 0:37:22With one Dragon already having walked away from the deal,
0:37:22 > 0:37:24will Deborah Meaden and Piers Linney
0:37:24 > 0:37:28also be deterred by Wrap It Up's £4 million price tag?
0:37:30 > 0:37:33A business would have to have something that absolutely
0:37:33 > 0:37:38the only way of me to enter that market was via that business
0:37:38 > 0:37:40for me to pay the kind of multiples that you're asking for.
0:37:40 > 0:37:42You've got a business that I could go out tomorrow,
0:37:42 > 0:37:44put a team together and do.
0:37:46 > 0:37:49So, I am really sorry, but I'm out.
0:37:52 > 0:37:55I'm not afraid of buying companies with five times revenue,
0:37:55 > 0:38:00to be quite frank. The reason you'll do that is about growth, isn't it?
0:38:00 > 0:38:05- It's growth.- If you're going from 1.8 to 5 to 10 to 20 to 30 to 50 million of revenue,
0:38:05 > 0:38:07that's when you're valued at five times revenue,
0:38:07 > 0:38:11so, on that basis, it's not for me, I'm out.
0:38:11 > 0:38:13Thank you.
0:38:16 > 0:38:21Three Dragons have now bowed out and Tayub and Afnan's chances of securing
0:38:21 > 0:38:25an investment rests with Kelly Hoppen and Peter Jones.
0:38:28 > 0:38:30Something needs to wow me, you know,
0:38:30 > 0:38:35that's the first thing, the smell and then the sight and then it's talking.
0:38:35 > 0:38:39And I didn't get that. It's not wowing me.
0:38:39 > 0:38:42I'm sorry, but I won't be investing and I'm out.
0:38:42 > 0:38:44No problem, thank you.
0:38:44 > 0:38:47The opportunity in terms of investment,
0:38:47 > 0:38:51at 500K for 11% is about as attractive as eating a rotten egg.
0:38:51 > 0:38:54- OK, fair enough.- Fair enough.
0:38:54 > 0:38:59You should have come in at a realistic level to get
0:38:59 > 0:39:03the one person that could turn this into something special.
0:39:03 > 0:39:06But I'm not going to invest today and I'm out.
0:39:06 > 0:39:09- Thank you very much. - Thank you very much.
0:39:09 > 0:39:13Despite a promising initial pitch, Tayub and Afnan are leaving empty-handed.
0:39:15 > 0:39:18Their valuation of the business's overall worth
0:39:18 > 0:39:22having effectively scuppered their chances of Dragon investment.
0:39:22 > 0:39:25- That's it, isn't it? - We got lost in the valuations.
0:39:30 > 0:39:34Given the business we operate in and the market we are in, we were,
0:39:34 > 0:39:36in my opinion, realistic in valuations.
0:39:36 > 0:39:41You've really got to believe in the brand and be passionate about it as an investor,
0:39:41 > 0:39:44and I just don't think the Dragons...
0:39:44 > 0:39:47They didn't come with passion, I don't think
0:39:47 > 0:39:51they understood the business as we would have liked them to.
0:39:52 > 0:39:56They were certainly not the first entrepreneurs in the Den
0:39:56 > 0:39:59who felt they'd been misunderstood.
0:39:59 > 0:40:02- That was rough, wasn't it?- It was a mauling and a half, that was.- Yeah.
0:40:02 > 0:40:06It really was surprising. I'm really, really surprised.
0:40:06 > 0:40:10- It wouldn't have made any difference at all.- They just weren't interested.
0:40:11 > 0:40:15Richard Yu, who came in wanting a £50,000 investment
0:40:15 > 0:40:19for his unique twist on the traditional hot water bottle,
0:40:19 > 0:40:22was hoping the Dragons would share his passion for the product.
0:40:24 > 0:40:27It was a really, really bitter winter's evening
0:40:27 > 0:40:30and I had a traditional hot water bottle on my chest.
0:40:30 > 0:40:32My chest was warm because the hot water bottle was there.
0:40:32 > 0:40:36But my legs were freezing and it was my Eureka moment.
0:40:36 > 0:40:41I want to make the world's first long, slender, beautiful, soft hot water bottle.
0:40:41 > 0:40:44It's being sold for £199 in Harrods.
0:40:44 > 0:40:49- Have you made a profit on selling those products? - No, we've made an £80,000 loss.
0:40:49 > 0:40:53I spent a lot of money loosely and naively.
0:40:53 > 0:40:56What does Yu Yu mean?
0:40:56 > 0:40:59That's my name, Richard Yu, and a lot of people call me Yu Yu.
0:40:59 > 0:41:03Personally, I feel a warmth to it, so it was important for me to use that.
0:41:03 > 0:41:06The most ridiculous name to call this product.
0:41:06 > 0:41:11Totally egotistical, totally about you...
0:41:11 > 0:41:13and it's wrong.
0:41:13 > 0:41:19And Piers Linney believed he had spotted a more serious issue than just the product's name.
0:41:19 > 0:41:23I could probably keep one leg warm, or my back, or my waist.
0:41:23 > 0:41:26You've still got the same fundamental problem,
0:41:26 > 0:41:29it doesn't really keep much of you warm.
0:41:29 > 0:41:32- I think it's a genius idea. - I disagree with that.
0:41:32 > 0:41:36What you need to do is design a square one where you can
0:41:36 > 0:41:40- manufacture as many as you like, sell them cheap.- Thank you.
0:41:40 > 0:41:43LAUGHTER
0:41:43 > 0:41:48You have got a moment here to convince us to hand your cash over.
0:41:48 > 0:41:51- My grandmother told me when I was very young that I should...- Oh...
0:41:51 > 0:41:56..she said that you should make your own footprints in the snow.
0:41:56 > 0:42:03I'm not going to hand you a cheque because your grandmother told you a story about footprints in the snow.
0:42:03 > 0:42:07- I actually love the product... - Thank you.- ..because it's cashmere, it's got mother of pearl.
0:42:07 > 0:42:10But there's no money to be made because it's too expensive.
0:42:10 > 0:42:16I wish you great luck, but I'm certainly not going to invest my money.
0:42:16 > 0:42:20Sadly for Richard, neither design expert, Kelly Hoppen,
0:42:20 > 0:42:25nor any of the other Dragons viewed his long hot water bottle as a viable investment.
0:42:25 > 0:42:28Richard, I think this is just absolutely crazy.
0:42:28 > 0:42:31- And for that reason, I'm out.- Thank you.
0:42:44 > 0:42:46Next up is Ross Mendham.
0:42:46 > 0:42:50He's a fitness buff looking for a muscular investment of £60,000.
0:42:50 > 0:42:56He used to be a personal trainer, and he's come to the Den with a product inspired by his old career.
0:43:22 > 0:43:27Hello, guys. I'm Ross Mendham, managing director of Bare Naked Foods.
0:43:27 > 0:43:32When I was younger, I was always slightly overweight and as a kid I was bullied as a result.
0:43:32 > 0:43:37In my teenage years I suffered from body dysmorphia and it really got me down.
0:43:37 > 0:43:39I did, however, decide to do something about it.
0:43:39 > 0:43:44I hit the gym, eventually got a six pack and a chest most men were envious of.
0:43:44 > 0:43:48I had just started another low carb diet, and I was thinking,
0:43:48 > 0:43:51"I really fancy pasta," but I couldn't eat it.
0:43:51 > 0:43:55So, started researching, is there an alternative?
0:43:55 > 0:44:02Couldn't find anything, so I thought, "Right, I'm going to do it myself," and my company was born.
0:44:02 > 0:44:06There are two products we are currently selling online on our website.
0:44:06 > 0:44:10One is Bare Naked Noodles, one is Bare Naked Protein Noodles.
0:44:10 > 0:44:14Both are under 30 calories, they have no fat, they are gluten-free.
0:44:14 > 0:44:17They have no nasty ingredients either.
0:44:17 > 0:44:23I really need a volunteer to help me for two minutes, just to show you how quick and easy it is...
0:44:23 > 0:44:26- I'll do it.- Yeah, Kelly? Thank you very much.
0:44:29 > 0:44:33What I'm going to do first is put some oil in the pan.
0:44:39 > 0:44:43Simply...open the bag.
0:44:47 > 0:44:49And drain the water.
0:44:51 > 0:44:55- When you said two minutes, how many minutes do you actually mean?- Erm...
0:44:55 > 0:44:58I think...well, two minutes, I usually do this in two minutes.
0:44:58 > 0:45:00- Could you hurry up?- Yes.
0:45:00 > 0:45:04I think we're pretty much there, so another minute.
0:45:06 > 0:45:10- Let me get the plates out ready. - Is that it?
0:45:10 > 0:45:13Thank you very much, Kelly, you've been a great help. Thank you.
0:45:16 > 0:45:18- Could you serve it now?- Yes.
0:45:18 > 0:45:22Leave him alone, what is the matter with you? Have some patience.
0:45:24 > 0:45:28A nervy pitch from Ross Mendham, from Norfolk.
0:45:28 > 0:45:32He wants £60,000 in return for a 20% share of his business.
0:45:35 > 0:45:40Having sampled Ross's noodles, the Dragons want to discover more about their contents.
0:45:41 > 0:45:48- Erm, so, I heard a lot about what it hasn't got in it.- Yes.
0:45:48 > 0:45:50What has it got in it?
0:45:50 > 0:45:55Right, it's got oatmeal flour, Konjac flour...
0:45:55 > 0:45:57soya bean fibre...
0:45:58 > 0:46:00..and calcium hydroxide.
0:46:00 > 0:46:05- You say they are gluten-free?- Yes. - But you say they have got oatmeal in them.
0:46:05 > 0:46:08- Is it a gluten-free...? - It's oatmeal flour.
0:46:08 > 0:46:12Oatmeal flour's shown it doesn't have gluten in,
0:46:12 > 0:46:17but sometimes mimics gluten-like symptoms.
0:46:17 > 0:46:21I think you're wrong because I actually have a gluten allergy.
0:46:21 > 0:46:24If I have normal oats, my fingers will swell up.
0:46:28 > 0:46:34Kelly Hoppen has thrown Ross's initial claims about the content of his noodles into doubt.
0:46:34 > 0:46:39And Deborah Meaden is about to subject the ingredients to further scrutiny.
0:46:39 > 0:46:42I want to see this proof that says this is gluten-free.
0:47:17 > 0:47:19I'm going to explain that to you.
0:47:19 > 0:47:23You probably need to, because at no point on that piece of paper
0:47:23 > 0:47:26- does that say this is gluten-free. - No, erm...
0:47:29 > 0:47:30..it's not, because...
0:47:32 > 0:47:38The ingredients is cornflour and rice flour, not oatmeal flour.
0:47:39 > 0:47:43- So it's not gluten-free? - It is gluten-free.
0:47:46 > 0:47:52Ross's confusion over the composition of his noodles has riled some of the Dragons.
0:47:52 > 0:47:55It falls to Piers Linney to defuse the situation.
0:47:56 > 0:48:00Ross, I think everyone has gone off on a gluten tangent here.
0:48:00 > 0:48:03- I think, fair play to you. - I completely understand...
0:48:03 > 0:48:05Let me carry on.
0:48:05 > 0:48:11Fair play to you, I can see the idea and you've got up and you've done it.
0:48:11 > 0:48:14That's your problem, I think you've maybe nearly done it.
0:48:14 > 0:48:17But you've got an idea, can you get there? I don't know.
0:48:17 > 0:48:22- What's your 60,000 for? - Warehouse...- Warehouse?
0:48:22 > 0:48:25That's not the best thing to start with.
0:48:25 > 0:48:28Additional stock to cater for the increasing demand.
0:48:29 > 0:48:33Marketing and product development.
0:48:33 > 0:48:36I think you should put product development at the top.
0:48:36 > 0:48:41I've realised, I've learnt today that's going to be the most important part...
0:48:41 > 0:48:43- Way before your warehouse. - Well, yeah.
0:48:45 > 0:48:49Ross is struggling to win the confidence of the Dragons.
0:48:49 > 0:48:54But will news of a potential distribution deal change the mood in the Den?
0:48:55 > 0:49:00Currently we have interest from two national high-street retailers.
0:49:00 > 0:49:03One with 800 stores, one with 600.
0:49:03 > 0:49:07We are very close to signing a deal with them.
0:49:07 > 0:49:09You have agreed a price to sell them?
0:49:09 > 0:49:12Yes, £1.33 and it costs us to make, 41p.
0:49:12 > 0:49:18- So you make approximately 85, 90p per packet to this company?- Yes.
0:49:18 > 0:49:24- And they're going to take how many from you a month?- 8,000.
0:49:24 > 0:49:29- How much profit would that make you in a month?- That will make me...
0:49:52 > 0:49:55You'll have to forgive me, maths wasn't my strong point at school.
0:49:55 > 0:49:59- I'm starting to realise that.- Yeah!
0:49:59 > 0:50:04Ross's tenuous grasp of his numbers has frustrated his audience.
0:50:04 > 0:50:07And Deborah Meaden has heard enough.
0:50:07 > 0:50:12Ross, I've got to tell you, this is a very disappointing presentation from you.
0:50:12 > 0:50:15I don't think you know enough about this product to make
0:50:15 > 0:50:18the claims that are sitting on the front of this packaging.
0:50:18 > 0:50:20You need to be very careful about that.
0:50:20 > 0:50:24- So I won't be investing in you, and I'm out.- Thank you, Deborah.
0:50:26 > 0:50:32A blow for the young entrepreneur as a first Dragon walks away from the chance to invest.
0:50:32 > 0:50:34Will Kelly Hoppen prove any more forgiving?
0:50:36 > 0:50:39Problem is, the texture wasn't great,
0:50:39 > 0:50:42it really kind of disturbed me, the way it tasted.
0:50:42 > 0:50:45What you said to Deborah was, it isn't oatmeal,
0:50:45 > 0:50:47it's actually corn and rice, which is gluten-free.
0:50:47 > 0:50:50But why have you got oat on the packet?
0:50:50 > 0:50:55You don't know your product well enough. For that reason, I'm out.
0:50:56 > 0:50:59With two Dragons now having bowed out,
0:50:59 > 0:51:04Ross's chances of securing the healthy £60,000 investment he came for are looking slim.
0:51:05 > 0:51:11Duncan Bannatyne wants to find out more about the man behind the noodle.
0:51:11 > 0:51:14At the moment, how are you funding your lifestyle?
0:51:14 > 0:51:16I have a fantastic wife who erm...
0:51:18 > 0:51:19..sorry...
0:51:33 > 0:51:34Sorry...
0:51:34 > 0:51:35HE SNIFFS
0:51:41 > 0:51:42HE SIGHS HEAVILY
0:51:44 > 0:51:47- Just take a minute, Ross, and come back.- Sorry.
0:51:47 > 0:51:49Take your time.
0:51:50 > 0:51:52HE SOBS
0:52:00 > 0:52:04He should come back or he's going to kick himself if he doesn't finish this.
0:52:04 > 0:52:06- He'll come back. - He needs to come back.
0:52:25 > 0:52:27- I do apologise.- No problem.
0:52:27 > 0:52:31So obviously, this is something that is very emotional for you.
0:52:31 > 0:52:34But I want to get back to about how you fund your lifestyle
0:52:34 > 0:52:37- and you were talking about your wife?- Yes.
0:52:37 > 0:52:41She supports both of us while I'm getting the business off the ground.
0:52:41 > 0:52:45- She's working to do that?- Yes. - Full-time?- Yes.- OK.
0:52:45 > 0:52:50Unfortunately, she had a third miscarriage before I came...here.
0:52:50 > 0:52:52Sorry to hear that, Ross.
0:52:53 > 0:52:55HE SOBS
0:52:55 > 0:52:59It can only get better, Ross. It can only get better.
0:52:59 > 0:53:05What we've just heard, as we can see it's emotionally heart-wrenching.
0:53:05 > 0:53:10It's great that you're here, but you're not here for sympathy,
0:53:10 > 0:53:14you're here to gain investment in a business that you were
0:53:14 > 0:53:17- supposed to demonstrate had a future.- I know.
0:53:17 > 0:53:21What you've presented today, frankly, tastes like baby food.
0:53:21 > 0:53:24- I know.- I think you've got a good brand.
0:53:24 > 0:53:27I think Bare Naked Foods is clever.
0:53:27 > 0:53:29And that's why I'm going to make you an offer.
0:53:32 > 0:53:34HE LAUGHS
0:53:34 > 0:53:39And I'm going to offer you all of the money for half of a business
0:53:39 > 0:53:42that we've yet to create together.
0:53:46 > 0:53:47HE SOBS
0:53:47 > 0:53:51I think you deserve a break and I think you're the kind of guy
0:53:51 > 0:53:55that will make it, given an opportunity.
0:53:55 > 0:53:56HE EXHALES HEAVILY
0:53:56 > 0:53:58Sorry, I can't believe this.
0:54:01 > 0:54:05While recognising that his business needs plenty of work, Peter Jones
0:54:05 > 0:54:09has spotted a spark of potential in this young entrepreneur.
0:54:11 > 0:54:14Now, Duncan Bannatyne is ready to have his say.
0:54:15 > 0:54:19I'm not going to make you an investment offer.
0:54:19 > 0:54:23I'm going to make you two investment offers.
0:54:23 > 0:54:26I'm going to offer you the same as Peter Jones offered you,
0:54:26 > 0:54:31£60,000 for 50% of this business.
0:54:31 > 0:54:38And my second offer is, £30,000 for 25% of the business.
0:54:38 > 0:54:43Which means to get my second offer you'd have to have another Dragon to match my offer.
0:54:45 > 0:54:48Investments like this are about investing in people.
0:54:51 > 0:54:52So I'll make you an offer as well.
0:54:55 > 0:54:57So I'm going to offer you the same as Duncan.
0:54:57 > 0:55:02So it'd be 30,000 for 25% of the company.
0:55:09 > 0:55:11I'm going to make you another offer.
0:55:11 > 0:55:14The full 60,000 for 50% of the company.
0:55:16 > 0:55:18So, just to complicate it further...
0:55:20 > 0:55:24..I'm happy to work with Peter on that as well, if he was willing to split.
0:55:24 > 0:55:26But that's up to Peter to decide on that.
0:55:27 > 0:55:31Piers Linney has made a bid to align himself with Peter Jones,
0:55:31 > 0:55:34but will he agree to share the deal?
0:55:36 > 0:55:41It's normal that you would ask the Dragon what they're going to bring to the party,
0:55:41 > 0:55:44- but I wouldn't mind asking Piers what he's going to bring?- Youth.
0:55:44 > 0:55:47LAUGHTER
0:55:47 > 0:55:49Good answer!
0:55:52 > 0:55:56Some energy. So let me answer the question, seriously.
0:55:57 > 0:56:02I'm on a trajectory, a slightly different place maybe in my career and the development
0:56:02 > 0:56:06of my business, so I can understand where you are a bit more.
0:56:06 > 0:56:12You'll find out very quickly that I will help you get to where you deserve to be.
0:56:14 > 0:56:18Would you go into business with Piers?
0:56:18 > 0:56:23The offer is for 60,000, I'm not willing to share it with another Dragon.
0:56:23 > 0:56:25That's fine.
0:56:29 > 0:56:32I'd like to accept your offer...
0:56:32 > 0:56:37Peter, for £60,000 in return for half of my company.
0:56:37 > 0:56:39- Excellent.- Excellent. Well done.
0:56:39 > 0:56:41APPLAUSE
0:56:41 > 0:56:43- Well done.- Thank you.
0:56:43 > 0:56:45LAUGHTER
0:56:45 > 0:56:49- Thank you very much.- You feel all right? Don't faint on us.
0:56:49 > 0:56:52No, I'm not going to faint. Thank you very much.
0:56:54 > 0:56:56Ross has done it.
0:56:56 > 0:57:00Given his shaky start, it's been a truly remarkable turnaround.
0:57:04 > 0:57:08Peter saw my resolve, and Peter saw my determination.
0:57:08 > 0:57:11And with his investment, Bare Naked Foods will be a worldwide brand,
0:57:11 > 0:57:13and it will be successful.
0:57:13 > 0:57:16And I can't wait to be working with him.