0:00:27 > 0:00:30These are the Dragons.
0:00:30 > 0:00:32Wealthy, well-connected...
0:00:33 > 0:00:34..innovative...
0:00:34 > 0:00:35and influential.
0:00:35 > 0:00:39Each week, they make or break the dreams
0:00:39 > 0:00:42of dozens of budding entrepreneurs.
0:00:43 > 0:00:46I think it's probably one of the saddest sights I've ever seen.
0:00:46 > 0:00:49We're selling three dolls a week.
0:00:49 > 0:00:51- Three dolls a week?- Yes. - Three dolls a WEEK?!
0:00:52 > 0:00:56Do you really, really want to take this money off anybody in this room?
0:00:56 > 0:00:58It's completely and absolutely bonkers.
0:00:58 > 0:01:01I don't know why we've spent so much time on it.
0:01:02 > 0:01:05I think I'd rather do community service than invest in this.
0:01:09 > 0:01:11Leisure and marketing expert Deborah Meaden...
0:01:13 > 0:01:16..telecoms giant Peter Jones...
0:01:17 > 0:01:20..and hotel and health club owner Duncan Bannatyne
0:01:20 > 0:01:22have between them struck deals
0:01:22 > 0:01:25worth more than £7 million in the Den.
0:01:27 > 0:01:30But ready to fight for the next shrewd investment
0:01:30 > 0:01:32is the creator of her own world-renowned
0:01:32 > 0:01:35interior design brand, Kelly Hoppen,
0:01:35 > 0:01:38and cloud computing pioneer Piers Linney.
0:01:41 > 0:01:44The multi-millionaires will give each entrepreneur
0:01:44 > 0:01:46just three minutes to pitch their idea
0:01:46 > 0:01:50and then interrogate them on 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?
0:02:03 > 0:02:05Welcome to Dragons' Den,
0:02:05 > 0:02:08where every week budding entrepreneurs
0:02:08 > 0:02:10pitch their business ideas
0:02:10 > 0:02:12to five self-made tycoons,
0:02:12 > 0:02:15who have to decide where to invest their money.
0:02:16 > 0:02:19First to face the Dragons are two soft-drink entrepreneurs,
0:02:19 > 0:02:22John McFarlane and Georgie Rodwell.
0:02:22 > 0:02:24They are trying to jostle their way
0:02:24 > 0:02:27into what is a very crowded market.
0:02:35 > 0:02:37THEY WHISPER
0:02:52 > 0:02:56Hello, Dragons. My name is John McFarlane.
0:02:56 > 0:02:59With me today is my business partner, Georgie Rodwell.
0:03:01 > 0:03:04We are here today to introduce you to Norfolk Cordial.
0:03:04 > 0:03:07We are seeking a £50,000 investment
0:03:07 > 0:03:11in return for a 25% stake in the business.
0:03:12 > 0:03:16Norfolk Cordial began in the summer of 2010,
0:03:16 > 0:03:18when we identified a need
0:03:18 > 0:03:23for a more adult-orientated soft drink within the on-trade sector.
0:03:24 > 0:03:27Last year, we won the best drink producer award
0:03:27 > 0:03:29at Norfolk's largest agricultural show.
0:03:29 > 0:03:31And we are proud to supply establishments
0:03:31 > 0:03:35such as Raymond Blanc's two-Michelin-starred Le Manoir.
0:03:35 > 0:03:37And we are the only UK cordial company
0:03:37 > 0:03:40to supply the food hall of Fortnum & Mason.
0:03:41 > 0:03:45Last year, the UK soft drink industry was worth £9.7 billion
0:03:45 > 0:03:49and a massive 22% of this market came from dilutables.
0:03:49 > 0:03:52With the increase in public awareness
0:03:52 > 0:03:55of the negative effects of excessive alcohol consumption,
0:03:55 > 0:03:59combined with the stringent enforcement of the drink-driving laws,
0:03:59 > 0:04:03we can only see an increase in demand for products such as Norfolk Cordial.
0:04:03 > 0:04:05We thank you for your time.
0:04:05 > 0:04:09We'd like to take this opportunity to invite you up to our bar for a drink,
0:04:09 > 0:04:12and then we're happy to answer any questions you may have.
0:04:14 > 0:04:16- DUNCAN:- Could I have a vodka in mine?
0:04:16 > 0:04:17LAUGHTER
0:04:17 > 0:04:19They do go very well with vodka, all of them.
0:04:19 > 0:04:23A smooth and assured pitch from the Norfolk couple.
0:04:23 > 0:04:26They're looking for £50,000 for 25% equity
0:04:26 > 0:04:29in their high-end cordial business.
0:04:29 > 0:04:32Flavour-wise, we do raspberry.
0:04:32 > 0:04:36This is a redcurrant and grapefruit. Strawberry and lime,
0:04:36 > 0:04:39rhubarb, orange and ginger and wild elderflower.
0:04:39 > 0:04:41- I've got raspberry.- Yes.
0:04:42 > 0:04:45The first to question the East Anglian entrepreneurs
0:04:45 > 0:04:47is Piers Linney.
0:04:48 > 0:04:50- Very nice.- Thank you.
0:04:51 > 0:04:53Why did you get into this business
0:04:53 > 0:04:55and how have you got to where you are?
0:04:55 > 0:04:59How we got into it was Georgie made elderflower cordial like people do at home.
0:04:59 > 0:05:02She was selling it to the pub she worked at when I met her.
0:05:02 > 0:05:03It was doing very well,
0:05:03 > 0:05:09and when I looked at the turnover that one little pub in the middle of Norfolk could do with a syrup,
0:05:09 > 0:05:15I saw there was a gap in the market for something that was geared towards that sort of market sector.
0:05:15 > 0:05:18So did cordial bring you together?
0:05:18 > 0:05:20In some ways, yes!
0:05:20 > 0:05:23- Not often you can say that.- Exactly.
0:05:23 > 0:05:27At the time, I was pretty much homeless, living in a static caravan.
0:05:27 > 0:05:30I borrowed £5,000.
0:05:30 > 0:05:35With that money I bought the equipment and the raw materials required to get the business started.
0:05:35 > 0:05:41I probably made in the region of around 3,000 bottles of elderflower that summer
0:05:41 > 0:05:45and set off trying to sell them once I'd made them to all the pubs in Norfolk.
0:05:45 > 0:05:48Or as many as I could convince to purchase them.
0:05:48 > 0:05:51So, who would you say your competitors are?
0:05:51 > 0:05:54What we've done is chosen to go into the on-trade sector.
0:05:54 > 0:05:57You keep using this term "on-trade". What do you mean, "on-trade"?
0:05:57 > 0:06:00Within the hospitality sector more than a retail product.
0:06:00 > 0:06:04Things like Coca-Cola and Fanta, the syrup that comes out of a post-mix.
0:06:04 > 0:06:08But we actually do come in cheaper than a serving of Coke.
0:06:08 > 0:06:10The point of difference is the fact
0:06:10 > 0:06:13that we are catering for a more sophisticated adult palate.
0:06:13 > 0:06:15When you have a person who's not drinking,
0:06:15 > 0:06:17whether they don't drink alcohol or they're driving,
0:06:17 > 0:06:21their choices are Coke from the gun or what's in the fridge.
0:06:21 > 0:06:24Generally, they're quite high-sugar, children-orientated drinks.
0:06:24 > 0:06:29So we also see growth very much into a spa environment,
0:06:29 > 0:06:32where ladies are concerned about the amount of sugar they take,
0:06:32 > 0:06:33so it appeals to them.
0:06:33 > 0:06:35You'd sell that in spas, then?
0:06:35 > 0:06:37We've just taken on Ragdale Hall spa
0:06:37 > 0:06:39and then we have a small spa in...
0:06:39 > 0:06:41I know somebody that's got spas.
0:06:42 > 0:06:43I operate 34 spas,
0:06:43 > 0:06:45and the ladies come in and drink red wine.
0:06:45 > 0:06:49You know, they're not really looking for a non-alcoholic, non-sugar drink.
0:06:50 > 0:06:53Is that because you don't offer a good enough one?
0:06:55 > 0:06:57LAUGHTER
0:06:57 > 0:06:59- PETER:- Good. Do I like you!
0:07:01 > 0:07:02Sorry.
0:07:04 > 0:07:08Duncan Bannatyne's scepticism is coolly deflected
0:07:08 > 0:07:09by a confident Georgie.
0:07:09 > 0:07:14But does Deborah Meaden share her vision for the future of the product?
0:07:14 > 0:07:17When you say you're competing against Coke, I completely get that,
0:07:17 > 0:07:21because I actually don't drink. Very, very rarely now.
0:07:21 > 0:07:24Did. Don't any more.
0:07:24 > 0:07:26Um...and actually,
0:07:26 > 0:07:28it's dull as ditchwater when you go out,
0:07:28 > 0:07:31because you just get the same old same old.
0:07:31 > 0:07:35I end up drinking Diet Coke and I don't like Diet Coke!
0:07:36 > 0:07:38Now, here's the bad news.
0:07:42 > 0:07:44It's OK.
0:07:44 > 0:07:47Can I just ask everyone else, what do you think of your cordials?
0:07:49 > 0:07:52- DUNCAN:- I think it's not terrific, the taste, actually.
0:07:52 > 0:07:54- DEBORAH:- What do you think, Piers?
0:07:54 > 0:07:56To me, it seems to be quite safe.
0:07:56 > 0:08:00There's nothing there in terms of... I know what raspberry tastes like, thank you very much.
0:08:00 > 0:08:06I've tasted elderflower. But there's a place for being braver in terms of your flavours in your range.
0:08:06 > 0:08:10To begin with, we needed to play it safe in order to get our product out there.
0:08:10 > 0:08:14And we know we can push the boundary. We've pushed it to a certain extent,
0:08:14 > 0:08:16because you don't get a strawberry and lime.
0:08:16 > 0:08:21Generally, what we find is, with the majority order being on elderflower to begin with,
0:08:21 > 0:08:25elderflower starts to fall away and our other flavours start to take over on the orders.
0:08:29 > 0:08:32A persuasive response to criticism of their range.
0:08:32 > 0:08:38But will Duncan Bannatyne find their grasp of the company's figures just as convincing?
0:08:41 > 0:08:44So what's your projections going forward? Just turnover and net profit.
0:08:44 > 0:08:48This year to March 2014,
0:08:48 > 0:08:51our projected turnover is £150,000,
0:08:51 > 0:08:54with a net profit of £30,000.
0:08:54 > 0:08:58The following year, the turnover is £500,000,
0:08:58 > 0:09:00with a net profit of £90,000.
0:09:00 > 0:09:02And the following year, a turnover of £2 million,
0:09:02 > 0:09:05with a net profit of £500,000.
0:09:05 > 0:09:10And we also see growth very much into the Middle Eastern market as well,
0:09:10 > 0:09:13where obviously they're looking for a quality soft drink product.
0:09:13 > 0:09:18We've just had an order now from Dean & DeLuca for Kuwait and Qatar.
0:09:18 > 0:09:20First order was 24 cases.
0:09:21 > 0:09:26- Have you filled the order? - It's going out next week.- Wow.
0:09:26 > 0:09:28- KELLY:- That's a good order. It's a good brand.
0:09:28 > 0:09:32But you're in Fortnum's. Who do you sit next to in Fortnum's on the shelf?
0:09:32 > 0:09:34We sit next to ready-to-drink juices.
0:09:34 > 0:09:37We are the only cordial company in the food hall.
0:09:39 > 0:09:43These projections would be phenomenal...
0:09:43 > 0:09:45if you could convince me
0:09:45 > 0:09:48that they're true.
0:09:48 > 0:09:50But how are you going to achieve those figures?
0:09:50 > 0:09:54Basically by becoming the market leader
0:09:54 > 0:09:57in on-trade soft drink provision.
0:09:57 > 0:10:01I've gone into the drinks business and it is incredibly competitive.
0:10:01 > 0:10:04We come up against serious competition.
0:10:04 > 0:10:07For example, we wanted to introduce a syrup product
0:10:07 > 0:10:09and the competitors just really said,
0:10:09 > 0:10:11"The minute they go into that marketplace,
0:10:11 > 0:10:14"we'll drop our costs by half.
0:10:14 > 0:10:16"We'll take our margin away from our distributor."
0:10:16 > 0:10:18And all of a sudden, you can't get in.
0:10:18 > 0:10:21I think you're really up against it,
0:10:21 > 0:10:23because for this business to succeed,
0:10:23 > 0:10:26I think you need several hundred thousand pounds.
0:10:26 > 0:10:28So I'm going to have to say I'm out.
0:10:30 > 0:10:34A sceptical Peter Jones walks away from a deal.
0:10:34 > 0:10:38And now Deborah Meaden is ready to have her say.
0:10:41 > 0:10:43Competition doesn't often worry me,
0:10:43 > 0:10:47but this is a market that can and does respond very quickly,
0:10:47 > 0:10:50and the way they respond is exactly as Peter says,
0:10:50 > 0:10:55which is, "If you stock that product, I'm going to do a buy-one-get-one-free on my product."
0:10:55 > 0:10:59And there are some big players out there who completely dominate that marketplace.
0:10:59 > 0:11:03So I'm sorry, guys, but I won't be investing and I'm out.
0:11:06 > 0:11:09The cordial couple are dealt a blow
0:11:09 > 0:11:11as two Dragons make an abrupt exit.
0:11:11 > 0:11:14Piers Linney is the next to show his hand.
0:11:14 > 0:11:19But he has some unanswered questions about the small print of their company structure.
0:11:20 > 0:11:22Any other shareholders, or just you two?
0:11:22 > 0:11:26- There are six other shareholders in the business.- And who are they?
0:11:26 > 0:11:30One of them is Galton Blackiston, the Michelin-starred chef in Norfolk.
0:11:30 > 0:11:32The other two couples are friends of his.
0:11:32 > 0:11:34OK, and how much have they invested?
0:11:34 > 0:11:37They have invested £45,000.
0:11:37 > 0:11:40And what percentage did they get for that?
0:11:40 > 0:11:42They currently have 48%.
0:11:42 > 0:11:45- For £45,000?- Correct.
0:11:45 > 0:11:48And they're willing to dilute their percentage shareholding
0:11:48 > 0:11:52in accordance to any agreement that's made in the Den today.
0:11:56 > 0:11:58A late and surprising development in the Den,
0:11:58 > 0:12:02as the entrepreneurs reveal they've already given away
0:12:02 > 0:12:05nearly half of their company to other investors.
0:12:06 > 0:12:11Will this whet or kill the Dragons' appetite to jump on board?
0:12:13 > 0:12:16Now, you said the investors would dilute.
0:12:16 > 0:12:19Did you mean you'd all dilute, you included? Or just them?
0:12:19 > 0:12:23- No, we are all happy to dilute our shareholding as necessary.- OK.
0:12:23 > 0:12:25Right. You would dilute to the same amount?
0:12:25 > 0:12:28- Yes.- Yes. - And the same percentage-wise?
0:12:28 > 0:12:32That's the problem. I mean, if I offered you £50,000 for 30%...
0:12:32 > 0:12:37your shareholding would come down to about 36%.
0:12:37 > 0:12:39You're not going to work for nothing.
0:12:39 > 0:12:43And work 80 hours a week in a company where you own 36%,
0:12:43 > 0:12:47the way you would when it's your baby and you're building it up and you own 100%.
0:12:47 > 0:12:48We do already.
0:12:48 > 0:12:50Yeah, but you have 52%.
0:12:51 > 0:12:56I disagree, in the sense that I feel that 36% of something large
0:12:56 > 0:12:59is worth potentially more than something we have 52% or 100%...
0:12:59 > 0:13:02Yeah, but when you've done an 80-hour week
0:13:02 > 0:13:04and you've had a bad week and things haven't gone so well,
0:13:04 > 0:13:08you're going to think, "Why did I bring that Dragon in? He hasn't actually achieved anything yet.
0:13:08 > 0:13:11"We've got these other investors, and we're doing all the work.
0:13:11 > 0:13:13"And they haven't actually contributed anything."
0:13:13 > 0:13:17Because sometimes it doesn't work and sometimes it takes a bit of time.
0:13:17 > 0:13:20If it was me, I wouldn't take any money off anybody right now.
0:13:20 > 0:13:25Do you really, really want to take this money off anybody in this room?
0:13:29 > 0:13:31An unprecedented turn of events,
0:13:31 > 0:13:34as Piers Linney advises the entrepreneurs
0:13:34 > 0:13:37to think twice about taking any further investment.
0:13:37 > 0:13:40Will Kelly Hoppen agree?
0:13:42 > 0:13:44I think you sell a good story.
0:13:44 > 0:13:47It tastes great.
0:13:47 > 0:13:53Um...but my advice to you would be to grow it yourselves.
0:13:53 > 0:13:57You know? Because to give away all these different percentages,
0:13:57 > 0:13:59it's all a mess.
0:14:01 > 0:14:05I really think that it's not for me, so I'm sorry, I'm out.
0:14:05 > 0:14:07- Thank you.- Thank you.
0:14:14 > 0:14:17I think you've done a fantastic, professional presentation.
0:14:17 > 0:14:20You've come in here, you know the numbers, you know your brand.
0:14:20 > 0:14:23I don't think you've slipped up once. It's quite amazing.
0:14:23 > 0:14:26It's fantastic. But I still can't get over that structural issue.
0:14:28 > 0:14:29So...
0:14:29 > 0:14:32for that reason, I'm out.
0:14:32 > 0:14:33Thank you.
0:14:36 > 0:14:40I take back my suggestion you wouldn't be fully enthused. I think you would be, both of you.
0:14:40 > 0:14:43I hope you do turn over £2 million in three years' time
0:14:43 > 0:14:47and have a £500,000 profit, because if you do, I think one of the big boys will just buy you up.
0:14:47 > 0:14:50And you walk away into the sunset with loads and loads of money.
0:14:50 > 0:14:53And we'll all go off crying because we never got any of it.
0:14:53 > 0:14:54But I can't invest in it,
0:14:54 > 0:14:56because I don't think the amount is big enough.
0:14:56 > 0:15:01For that reason, I've got to say, very, very reluctantly, because I'd love to work with you...
0:15:01 > 0:15:02I'm out.
0:15:02 > 0:15:03- Thank you.- Thank you very much.
0:15:05 > 0:15:08The Dragons may have had a taste for Norfolk Cordial,
0:15:08 > 0:15:11but the complicated share structure of the business
0:15:11 > 0:15:14ultimately undermined any deal.
0:15:14 > 0:15:18John and Georgie head home without an investment.
0:15:20 > 0:15:23I thought that maybe we would get somewhere,
0:15:23 > 0:15:25but they haven't invested
0:15:25 > 0:15:28and we really hope to prove them wrong.
0:15:30 > 0:15:34In the UK, over 40 million of us now use a tablet or smartphone,
0:15:34 > 0:15:37helping fuel a global boom in apps,
0:15:37 > 0:15:40a market worth billions of pounds a year.
0:15:42 > 0:15:44Hi, Dragons. We're the founders of Swarmly.
0:15:44 > 0:15:47Today we're looking for £120,000 for 30% of our company.
0:15:49 > 0:15:52This Glaswegian pair, David McNabb and Marco De Nichilo,
0:15:52 > 0:15:54have created a mobile phone app
0:15:54 > 0:15:57which allows you to find the most popular places to be
0:15:57 > 0:15:59at any time of the day or night.
0:16:01 > 0:16:02So, this is the application.
0:16:02 > 0:16:06Essentially what you see is a map and all these little dots on the map
0:16:06 > 0:16:08are where people are congregating right now, this instant.
0:16:08 > 0:16:11These dots are people as they move about from venue to venue
0:16:11 > 0:16:14and show it all in real time all across the globe.
0:16:14 > 0:16:17You can actually tell before you even leave the house - is the gym busy?
0:16:17 > 0:16:21Is the cinema busy? Real-time sat-nav for people.
0:16:21 > 0:16:24It was a concept the Dragons struggled to get their heads around.
0:16:24 > 0:16:26So if I go out one evening and I think,
0:16:26 > 0:16:29"I'll go to that bar - it's full of Swarmly people"
0:16:29 > 0:16:32and I don't like them, then there's no point, is there?
0:16:32 > 0:16:36No-one wants a swarm if I'm going down to B&Q to buy a bolt-cutter.
0:16:36 > 0:16:38And was this app less of a social network,
0:16:38 > 0:16:40more of an antisocial network?
0:16:40 > 0:16:45I have to say, I am so against what you're actually doing.
0:16:45 > 0:16:48Call me old-fashioned, but if I want to go and meet some friends,
0:16:48 > 0:16:51I'm going to pick up the phone and we're going to have a conversation
0:16:51 > 0:16:54about where we're going to go and eat dinner or whatever.
0:16:54 > 0:16:57It's an app for people who don't talk to anybody, have no friends...
0:16:57 > 0:16:59- DUNCAN:- I want one!
0:17:00 > 0:17:04For Peter Jones, the app's flaw was far more fundamental.
0:17:04 > 0:17:07You've invented a pen but you've forgotten the ink.
0:17:07 > 0:17:09- How's that?- It's irrelevant.
0:17:09 > 0:17:13- I don't necessarily think that's the case.- Think about what you've done.
0:17:13 > 0:17:17You need the whole of the population to be even slightly accurate
0:17:17 > 0:17:20with your concept. And you're never going to get that. It's impossible.
0:17:22 > 0:17:24Well, yeah.
0:17:24 > 0:17:28And there wasn't much confidence in the projected sales figures either.
0:17:28 > 0:17:33- So, net profit?- In Year 1, we think negative 111,000.
0:17:33 > 0:17:38In Year 2, negative 78, and Year 3, 118.
0:17:38 > 0:17:40So, by the end of Year 3,
0:17:40 > 0:17:42we've still got a cumulative loss.
0:17:42 > 0:17:44- At that point, yes.- At that point.
0:17:44 > 0:17:46At what point does an investor
0:17:46 > 0:17:49start to be in the slightest bit interested?
0:17:51 > 0:17:53Unfortunately for the IT pair,
0:17:53 > 0:17:56the Dragons saw it as an unappetising idea,
0:17:56 > 0:17:59with a cash-hungry, profit-poor business plan
0:17:59 > 0:18:01and it meant rejection from the Den.
0:18:02 > 0:18:04It's completely and absolutely bonkers.
0:18:04 > 0:18:06I don't know why we've spent so much time on it.
0:18:06 > 0:18:08For me, I don't like the concept at all.
0:18:08 > 0:18:12Anybody that puts money into this is going to lose every penny. It's a fact.
0:18:12 > 0:18:14I'm not interested. I'm out.
0:18:20 > 0:18:24So the Dragons didn't exactly swarm around Swarmly.
0:18:24 > 0:18:27But if it's tricky to come up with a bright idea
0:18:27 > 0:18:30in the young, fast-growing app sector,
0:18:30 > 0:18:33think how hard it can be to come up with something new
0:18:33 > 0:18:35in an industry that's been around for ever.
0:18:35 > 0:18:37That's what our next entrepreneurs are trying to do.
0:18:37 > 0:18:40Mother and son Tracey and Kieran Cannon.
0:19:07 > 0:19:09My name's Kieran Cannon.
0:19:09 > 0:19:11I'm here with my business partner and my mum, Tracey.
0:19:11 > 0:19:15Together we have brought along our company, My Lookalike Doll.
0:19:17 > 0:19:20First of all, the very realistic aim and ambition for My Lookalike Doll
0:19:20 > 0:19:23is to one day become the market-leading doll product worldwide.
0:19:23 > 0:19:26My Lookalike Doll is every little girl's dream.
0:19:26 > 0:19:29Our customers can create the doll to look exactly how they want.
0:19:29 > 0:19:32May that be to resemble the little girl,
0:19:32 > 0:19:33her favourite celebrity
0:19:33 > 0:19:35or even an imaginary friend.
0:19:37 > 0:19:41We also offer a range of fantastic matching clothing and accessories
0:19:41 > 0:19:44for the young girl to dress the same as her lookalike best friend.
0:19:44 > 0:19:47At the moment, our customers can enjoy creating their Lookalike Doll
0:19:47 > 0:19:49on our recently-launched website.
0:19:49 > 0:19:55However, we do aim to stock our products in major high street retailers in the near future.
0:19:55 > 0:19:58At the moment, in the UK, Europe and Asia,
0:19:58 > 0:20:02there is no other company that offers such a personalised service like we do.
0:20:02 > 0:20:06However, there is a company based in America.
0:20:06 > 0:20:12It's called American Girl, and fortunately, they do not ship to outside North America.
0:20:12 > 0:20:17- Last year, American Girl made an amazing 770 million.- Wow!
0:20:17 > 0:20:21And this is where we see an opportunity for an investor.
0:20:21 > 0:20:24Today we are here to pitch for £75,000
0:20:24 > 0:20:28in return for 30% of our very prosperous company.
0:20:29 > 0:20:32Could the girls come over so I can have a look at their dolls?
0:20:34 > 0:20:37An ambitious pitch from Kieran and Tracey Cannon,
0:20:37 > 0:20:40who are looking for £75,000
0:20:40 > 0:20:44for a 30% stake in their lookalike doll business.
0:20:44 > 0:20:47Kelly, we've actually brought one for yourself.
0:20:49 > 0:20:51Are you having a laugh?
0:20:51 > 0:20:55The same for you, Deborah, but we took this one on your previous haircut!
0:20:55 > 0:20:57Could have styled it differently!
0:20:57 > 0:20:58Thank you very much.
0:21:00 > 0:21:03Kelly Hoppen is the first to question the two entrepreneurs.
0:21:03 > 0:21:05I don't know about that!
0:21:08 > 0:21:10Presumably you can't sell these in a store,
0:21:10 > 0:21:14because they're done to look like somebody that you know.
0:21:14 > 0:21:19No, the dolls are already... If you look at the face on the dolls, they're all identical.
0:21:19 > 0:21:22So what we have done is we have took across the board
0:21:22 > 0:21:28how many eye colours, skin colours, and the dolls are already pre-made and boxed and coded,
0:21:28 > 0:21:30so that you know whether it's blonde bob,
0:21:30 > 0:21:34red curls, long dark hair, brown eyes.
0:21:34 > 0:21:37And they would just be on the shelves.
0:21:37 > 0:21:39- Kieran.- Yes?
0:21:39 > 0:21:43If you've got, I'm assuming, about 12 different types of dolls,
0:21:43 > 0:21:48- maybe between eight and 12? - We've actually got 133 different combinations.
0:21:48 > 0:21:50- 133 different combinations?- Yes.
0:21:50 > 0:21:52So there lies your issue.
0:21:53 > 0:21:57Because what you've had to do now is you've had to go very far and wide
0:21:57 > 0:22:00to cater for a marketplace to have something available for every child.
0:22:00 > 0:22:03The reality is it's impossible to do that
0:22:03 > 0:22:05in a retail environment.
0:22:05 > 0:22:08I don't really see the issue.
0:22:08 > 0:22:12Kieran, Tracey, retail space is very valuable, so every square inch
0:22:12 > 0:22:14has got to give them cash back.
0:22:14 > 0:22:17They're not going to devote the amount of space
0:22:17 > 0:22:22to your doll that's going to be able to offer 133 different options.
0:22:25 > 0:22:27A reality check from Deborah Meaden
0:22:27 > 0:22:30of the viability of any business in store.
0:22:30 > 0:22:34Now Duncan Bannatyne wants to see if their sales figures
0:22:34 > 0:22:36have any more promise.
0:22:37 > 0:22:41- You said you wanted an investment in your very prosperous company.- Yes.
0:22:41 > 0:22:44So perhaps we're missing something.
0:22:44 > 0:22:46And if you explain to me
0:22:46 > 0:22:49how prosperous your company is, I might invest in you.
0:22:49 > 0:22:53What's the cost value of your stock, the dolls and clothing you have in stock?
0:22:53 > 0:22:57All the stock that we have at the warehouse... We've paid £60,000 for the doll orders.
0:22:57 > 0:23:00- So you've got the dolls? - We have all the dolls, yes.
0:23:00 > 0:23:02And £20,000 for the clothing.
0:23:02 > 0:23:06So you've got £80,000-worth of stock in a warehouse?
0:23:06 > 0:23:07Yes.
0:23:07 > 0:23:09Why aren't you selling it?
0:23:09 > 0:23:10Fast?
0:23:10 > 0:23:13I think it's the projections that I see at the moment.
0:23:13 > 0:23:16At the moment, we haven't done really any marketing for it at all.
0:23:16 > 0:23:21- So you haven't been selling any of these dolls?- Yes, we're selling three dolls a week.
0:23:21 > 0:23:24- Three dolls a week?- Yes. - Three dolls a WEEK?!
0:23:24 > 0:23:26Well, I'm hoping it will expand from that.
0:23:26 > 0:23:28I've got my projections from that.
0:23:28 > 0:23:31- DUNCAN:- Are you running at a loss or are you making money?
0:23:31 > 0:23:36We're running at a loss because we've invested so much money into it. We've invested £100,000.
0:23:37 > 0:23:42- You've...invested...£100,000?! - £100,000.
0:23:45 > 0:23:47It's not going to be a great business.
0:23:47 > 0:23:50It's got so many problems with it.
0:23:50 > 0:23:54- Right.- I can't invest in this, so I've got to say I'm sorry but I'm out.
0:23:57 > 0:24:00Duncan Bannatyne walks away from a deal
0:24:00 > 0:24:02because of disappointing sales.
0:24:02 > 0:24:05And Deborah Meaden wants to understand
0:24:05 > 0:24:09how the Glaswegian duo are bankrolling the business.
0:24:11 > 0:24:13Where did you get £100,000 from?
0:24:13 > 0:24:15Where we got the money was we remortgaged
0:24:15 > 0:24:17for £40,000.
0:24:17 > 0:24:20I took a redundancy package from my work,
0:24:20 > 0:24:24savings and a £20,000 business loan.
0:24:24 > 0:24:27And how much are you having to put in to support this activity?
0:24:27 > 0:24:29At the moment, I pay £700 a month in.
0:24:29 > 0:24:32So that pays the warehouse and the business loan at the moment.
0:24:32 > 0:24:35We are cutting back obviously on things in how we live
0:24:35 > 0:24:37to support that.
0:24:37 > 0:24:39So it's affecting your lives at the moment?
0:24:39 > 0:24:41Yes.
0:24:46 > 0:24:48A dramatic revelation,
0:24:48 > 0:24:50as Tracey and her son Kieran
0:24:50 > 0:24:53reveal they're drowning in stock
0:24:53 > 0:24:57and have to economise to keep a roof over their heads.
0:24:59 > 0:25:04It's very hard sitting in this chair sometimes, because I see almost like a pain
0:25:04 > 0:25:07when I've got two seemingly fantastic people
0:25:07 > 0:25:10that clearly want to make a business.
0:25:10 > 0:25:12Um...
0:25:13 > 0:25:15But your concept is flawed.
0:25:15 > 0:25:17And all I see now is
0:25:17 > 0:25:21a remortgage on a house, I see pain in the future.
0:25:21 > 0:25:24I think I need to say stop.
0:25:24 > 0:25:29Do not do anything or spend another pound
0:25:29 > 0:25:31taking this forward.
0:25:33 > 0:25:35Sadly, Tracey and Kieran, I'm out.
0:25:45 > 0:25:47Harsh advice from Peter Jones,
0:25:47 > 0:25:49as he walks away from an investment.
0:25:51 > 0:25:53Will Piers Linney be any more receptive
0:25:53 > 0:25:56to the idea of a lookalike doll?
0:25:57 > 0:26:01If you keep selling these dolls at the rate you're selling them,
0:26:01 > 0:26:03you've got 25 years' worth of stock.
0:26:05 > 0:26:07And that would keep me awake at night.
0:26:07 > 0:26:11I would liquidate as many as you can, pay off the loan, seriously,
0:26:11 > 0:26:13and then think about what you do next.
0:26:13 > 0:26:15But it's not something I would invest in,
0:26:15 > 0:26:17so I'm afraid I'm out too.
0:26:17 > 0:26:19Yeah.
0:26:20 > 0:26:24Kieran, Tracey, I have to be brutally honest -
0:26:24 > 0:26:26it's just not a viable business
0:26:26 > 0:26:29and I can see your excitement, but you're not selling enough.
0:26:29 > 0:26:31There's nothing here that's showing me
0:26:31 > 0:26:35that this is a business that I would want to put my money into.
0:26:35 > 0:26:38I'm afraid it's not for me, so I'm out.
0:26:41 > 0:26:44Four Dragons gone. Only one remains.
0:26:44 > 0:26:50Will Deborah Meaden be persuaded to give the couple the money they so desperately need?
0:26:52 > 0:26:55The plan you walked in here today was take over the world with your dolls.
0:26:57 > 0:27:00The plan you should be considering now is, before you do anything else,
0:27:00 > 0:27:03turn some of that stock back into cash,
0:27:03 > 0:27:06because having remortgaged my house,
0:27:06 > 0:27:08having taken out a loan
0:27:08 > 0:27:12and sitting with £100,000-worth of cash tied up in stock
0:27:12 > 0:27:15would be making me feel very uncomfortable.
0:27:15 > 0:27:17Because at three dolls a week,
0:27:17 > 0:27:22you're getting no signs at all that you're ever going to get that cash back.
0:27:22 > 0:27:26So I'm sorry to be saying I won't be investing, and I'm out.
0:27:26 > 0:27:28- Thank you very much.- Thank you.
0:27:35 > 0:27:38Kieran and Tracey Cannon came into the Den
0:27:38 > 0:27:40seeking £75,000.
0:27:40 > 0:27:43But they leave with nothing.
0:27:45 > 0:27:50Hopefully from now, in the next few months from here, the stock will fly out the door
0:27:50 > 0:27:52and the Dragons will eat their words!
0:28:03 > 0:28:05So far, no investment in the Den.
0:28:05 > 0:28:07At what point does an investor
0:28:07 > 0:28:09start to be in the slightest bit interested?
0:28:09 > 0:28:11But coming up...
0:28:11 > 0:28:13It's getting sadder by the minute.
0:28:13 > 0:28:18Piers Linney is in knots over a new brand of campus clothing.
0:28:18 > 0:28:20I've spotted a design problem.
0:28:20 > 0:28:24And an innovative shower pump gets the Peter Jones treatment.
0:28:24 > 0:28:27I think I'd rather do community service than invest in this.
0:28:36 > 0:28:39It's getting harder and harder to come up with new ideas
0:28:39 > 0:28:42for online retail businesses.
0:28:43 > 0:28:46So has entrepreneur Manu Bhardwaj come up with one?
0:28:49 > 0:28:52He's next to make a proposal to the Dragons.
0:29:00 > 0:29:01Hi. My name's Manu Bhardwaj,
0:29:01 > 0:29:04and we're here today to ask for a £100,000 investment
0:29:04 > 0:29:06for a 35% equity stake in our company.
0:29:06 > 0:29:09A few years ago, when I proposed to my girlfriend,
0:29:09 > 0:29:12I found the experience of buying an engagement ring very frustrating.
0:29:12 > 0:29:16I had a very clear vision of what my perfect engagement ring looked like,
0:29:16 > 0:29:19but I was unable to find a ring I could buy off the shelf which was similar enough.
0:29:19 > 0:29:22But more frustratingly, I was unable to find a jeweller
0:29:22 > 0:29:25that could make the exact ring I wanted within my budget.
0:29:25 > 0:29:28Out of this frustration, Hot Pink was born.
0:29:28 > 0:29:30Hot Pink is a new breed of jeweller.
0:29:30 > 0:29:34We use the latest in 3D technology to design and make our jewellery.
0:29:34 > 0:29:37Now, the Hot Pink process starts with an online design consultation.
0:29:37 > 0:29:42Just before your consultation, you'll get an email from your personal ring designer.
0:29:42 > 0:29:44Your ring designer will work with you
0:29:44 > 0:29:47to make your perfect ring into a 3D computer model.
0:29:47 > 0:29:50You can change the big things and finesse the little things.
0:29:52 > 0:29:55Your ring designer will show you how your ring will look from every angle,
0:29:55 > 0:29:57and even how it looks on a hand.
0:29:57 > 0:29:59And next to a wedding band.
0:29:59 > 0:30:02Hot Pink will then build your ring just for you
0:30:02 > 0:30:04as a bespoke, one-off piece of artwork.
0:30:05 > 0:30:07Hot Wink...er, Hot Pink
0:30:07 > 0:30:09has been trading for 18 months.
0:30:09 > 0:30:12So far, we've recorded a turnover of £120,000.
0:30:12 > 0:30:16However, £60,000 of that turnover has been accrued in the last four months.
0:30:17 > 0:30:19Our average ring sale is £3,000
0:30:19 > 0:30:21and our gross margin is 40%.
0:30:21 > 0:30:24Thank you for listening, and I'll happily take any questions.
0:30:28 > 0:30:31A crystal-clear pitch by the London-based entrepreneur,
0:30:31 > 0:30:33who's looking for £100,000
0:30:33 > 0:30:38for a 35% stake in his bespoke jewellery design business.
0:30:38 > 0:30:41But Manu Bhardwaj's proposition
0:30:41 > 0:30:44has stirred up some strong emotions in Kelly Hoppen.
0:30:47 > 0:30:50I think it's probably one of the saddest sights I've ever seen.
0:30:50 > 0:30:53Because going out and choosing an engagement ring
0:30:53 > 0:30:56has got to be something that you want to do together,
0:30:56 > 0:31:00and trying on a ring and seeing what it's like on your finger...
0:31:00 > 0:31:02It's something that's going to sit on your hand for ever.
0:31:02 > 0:31:05There's got to be a better way of doing it.
0:31:05 > 0:31:08There is another way we get round this issue.
0:31:08 > 0:31:11Some people do want that tangible feeling of having the ring,
0:31:11 > 0:31:14so we offer this thing called a proposal service,
0:31:14 > 0:31:16which is essentially for guys,
0:31:16 > 0:31:18because proposing, for guys, can be quite intimidating.
0:31:18 > 0:31:21So the service we offer is, come and see us
0:31:21 > 0:31:24and we'll help them design their perfect ring.
0:31:24 > 0:31:28Then instead of making it for real in platinum or 18-carat white gold or whatever,
0:31:28 > 0:31:32we actually make it in sterling silver and set it with Swarovski stones.
0:31:32 > 0:31:35So it looks exactly like the real thing.
0:31:35 > 0:31:39The guy will then propose with that ring and tell the partner soon afterwards it's a proposal ring
0:31:39 > 0:31:41and they've got the chance to change it.
0:31:41 > 0:31:44It's getting sadder by the minute to me, honestly.
0:31:44 > 0:31:46If somebody proposed to me with a fake ring...
0:31:46 > 0:31:48I would hate that!
0:31:48 > 0:31:51I would like to think that if they're going to go out,
0:31:51 > 0:31:54first of all, they'd know kind of what I would want,
0:31:54 > 0:31:57or to propose without a ring and then say,
0:31:57 > 0:31:59"Let's go and do it together."
0:31:59 > 0:32:01Out of all the engagement rings we've sold,
0:32:01 > 0:32:0340% are guys coming on their own,
0:32:03 > 0:32:05and then 60% will come as a couple.
0:32:05 > 0:32:08And they actually enjoy the experience of designing a ring
0:32:08 > 0:32:10that is just for them and completely bespoke for them.
0:32:10 > 0:32:14So are they really sitting down in front of their laptop and saying,
0:32:14 > 0:32:19"I love you. I'm going to fire my laptop up and I'm going to design you a ring
0:32:19 > 0:32:24"and it's going to be manufactured on some automated lathe in a factory somewhere"?
0:32:24 > 0:32:25So...
0:32:27 > 0:32:29The quick answer is yes!
0:32:29 > 0:32:31If you could give me two seconds to show how it works,
0:32:31 > 0:32:33because it's actually very interactive
0:32:33 > 0:32:36and you get to choose every single component to the finest level of detail
0:32:36 > 0:32:38- and you can tweak any element of it. - Right.
0:32:38 > 0:32:42A lot of people like the romance of that, because it means you can't make the same ring twice.
0:32:42 > 0:32:46What happens then? You post it back, it arrives, I get a card through the door because I've gone shopping
0:32:46 > 0:32:49and we go and collect it romantically from the post office?
0:32:49 > 0:32:51Er, so...
0:32:52 > 0:32:54About half our clients will come and visit us to pick it up.
0:32:54 > 0:32:58The other half will either take a day off or get it delivered on a day that's convenient.
0:32:58 > 0:33:02I just think one of the most romantic days
0:33:02 > 0:33:05- in your life is when a man proposes to you.- Agreed.
0:33:05 > 0:33:10And it shouldn't be something that's rushed, sitting in front of a laptop.
0:33:10 > 0:33:14You might as well put on your screen that you can choose a wedding dress
0:33:14 > 0:33:16and have that sent through the post too.
0:33:16 > 0:33:20It's something that a girl needs to try on - the same with a ring.
0:33:24 > 0:33:27Manu's online designer jewellery service
0:33:27 > 0:33:30is failing to set Kelly Hoppen's heart racing.
0:33:30 > 0:33:34Will Deborah Meaden be any more positive?
0:33:35 > 0:33:40Funnily enough, whether I think I like it or not, whether I think it's sad or not,
0:33:40 > 0:33:44there are a lot of people out there who want bespoke,
0:33:44 > 0:33:47but actually haven't got the time to do it.
0:33:47 > 0:33:52And I get the market that can't just walk in to the most expensive jeweller and say,
0:33:52 > 0:33:55"Money no object, I'll have the thing that I want",
0:33:55 > 0:33:57so I get that this will happen online.
0:33:57 > 0:34:00So I actually... You don't have to sell me on any of that.
0:34:00 > 0:34:02My question is, is it you?
0:34:02 > 0:34:05What have you got that is different and outstanding
0:34:05 > 0:34:09and allows you to make a claim that everybody considers you to be the best?
0:34:09 > 0:34:13OK, so we've sold five times more than our nearest competitor,
0:34:13 > 0:34:17and we're number one in terms of selling through this software channel.
0:34:17 > 0:34:20- How do you know that?- We're very close to the software company.
0:34:20 > 0:34:24And you're saying there's only one software provider who actually does this?
0:34:25 > 0:34:28So, like all software, there's alternatives out there.
0:34:28 > 0:34:29The answer's no.
0:34:29 > 0:34:33Do you know...? Manu, I started saying I liked this,
0:34:33 > 0:34:39- but when it would be really easy to have yes or no answers... - I'd just rather not lie.
0:34:39 > 0:34:44It's much easier to say, "Yes, they are this and this is why I'm better."
0:34:44 > 0:34:47- I'm only trying to help you convince me!- I appreciate that.
0:34:47 > 0:34:52And if you resist those questions, it just makes me feel like you're trying to hide stuff.
0:34:52 > 0:34:54I don't want you to hide stuff.
0:34:54 > 0:34:57- I'm actually trying to do the opposite.- Well, do that and just say yes or no.
0:34:57 > 0:35:03So there are other software providers who can provide this type of software?
0:35:03 > 0:35:06Yes, but they're not very good at all.
0:35:06 > 0:35:08OK, but you keep making those claims.
0:35:08 > 0:35:13If there are other people using other software, you don't know where you sit in that market.
0:35:13 > 0:35:17- You don't know if you're the best. You don't know if you're selling more than anybody else.- OK.
0:35:19 > 0:35:21- Do you?- Er, no.
0:35:25 > 0:35:27Manu's pitch hangs in the balance,
0:35:27 > 0:35:31but his tangled answers are irritating the Dragons.
0:35:32 > 0:35:36And Duncan Bannatyne has something on his mind.
0:35:39 > 0:35:42I actually invested in a jewellery business about ten years ago.
0:35:42 > 0:35:46And I think most engagement rings, if I remember right,
0:35:46 > 0:35:48are bought at 10 o'clock on a Friday night.
0:35:48 > 0:35:53We do get peaks in traffic on our site late on Friday and Saturday nights when people are searching.
0:35:53 > 0:35:57I don't know if it's because the guy's trying to get his leg over, or what it is.
0:35:57 > 0:35:59But they're buying the engagement ring.
0:35:59 > 0:36:03But what I also found was, I spent a bit of time in some of the shops
0:36:03 > 0:36:05in Hatton Garden, and at the back of the shops,
0:36:05 > 0:36:09there was almost always a workshop or a designer and somebody doing some work there.
0:36:09 > 0:36:11And they've all got websites like that
0:36:11 > 0:36:14and they can adjust rings, and they can do what you're doing.
0:36:14 > 0:36:17Maybe your software is a bit better at doing it,
0:36:17 > 0:36:21but they've been doing it for years and they have the facility to do it.
0:36:21 > 0:36:23There's no extra cost to them to do it.
0:36:23 > 0:36:27It's not anything I would want to get involved in, so I'm going to tell you that I'm out.
0:36:36 > 0:36:39I get it. I get what you're doing and I'm not knocking what you're doing.
0:36:39 > 0:36:42I'm just saying it's not something that I sort of approve of.
0:36:42 > 0:36:44I think that it's a special time
0:36:44 > 0:36:48and I think today everybody's trying to make everything shorter and quicker,
0:36:48 > 0:36:50and some of the greatest moments in our lives
0:36:50 > 0:36:53are just getting swept into technology
0:36:53 > 0:36:55rather than being in the moment.
0:36:55 > 0:36:58- So, good luck with it.- Thank you.
0:36:58 > 0:37:01But it's not something I would invest in, so I'm afraid I'm out.
0:37:05 > 0:37:07- I don't want to criticise it. - I appreciate that.
0:37:07 > 0:37:10It's just the level of interest I've got to invest in it isn't there.
0:37:10 > 0:37:13- OK.- So I'm going to say I'm out.
0:37:13 > 0:37:14I appreciate your time.
0:37:19 > 0:37:21Only two Dragons remain.
0:37:21 > 0:37:26Deborah Meaden has so far been receptive to Manu's business model,
0:37:26 > 0:37:28but will she invest in him?
0:37:29 > 0:37:33I mean, I hear this romantic vision that's being talked about in the Den,
0:37:33 > 0:37:36but the truth is, there's something very lovely about saying,
0:37:36 > 0:37:38"Yes, we designed it".
0:37:38 > 0:37:40That, I very much like.
0:37:40 > 0:37:41But...
0:37:41 > 0:37:45this is a very, very highly contested arena,
0:37:45 > 0:37:47and in that busy marketplace,
0:37:47 > 0:37:50I think you're going to find it very difficult
0:37:50 > 0:37:52to own a substantial amount
0:37:52 > 0:37:58before somebody else spots that you are beginning to make a dent into that marketplace
0:37:58 > 0:38:03and then thinks, "Do you know what? I will license that software and we will offer the very same service"
0:38:03 > 0:38:07and probably in a better way, simply because they've got the cash to do it.
0:38:07 > 0:38:10So I'm afraid I'm out.
0:38:10 > 0:38:12Thank you. Do you mind if I...?
0:38:12 > 0:38:14No point answering me - he's your last chance!
0:38:14 > 0:38:17Do you have any rings with you?
0:38:17 > 0:38:20- It's a sample ring. Do you want to have a look at it?- Yeah, quickly.
0:38:20 > 0:38:21Very quickly.
0:38:21 > 0:38:23Please enjoy opening!
0:38:25 > 0:38:27I just want to see what they look like.
0:38:27 > 0:38:28It's nicely done.
0:38:32 > 0:38:36This is the most exciting moment, isn't it? Undoing the ribbons. That's lovely!
0:38:36 > 0:38:38It's nice.
0:38:39 > 0:38:42With each ring as well, you get a little book showing how it was made.
0:38:42 > 0:38:44There's actually one in the box.
0:38:45 > 0:38:47Go on, then.
0:38:50 > 0:38:51Look at that!
0:38:53 > 0:38:54- DUNCAN:- Very sparkly.
0:38:54 > 0:38:56You didn't show any of this.
0:38:56 > 0:38:58- KELLY:- You should have done this before.
0:38:58 > 0:39:02- Oh, right!- This is your product. You got carried away with the technology.
0:39:02 > 0:39:05- People tend to do that. - Classic entrepreneurial mistake, unfortunately.- It is.
0:39:07 > 0:39:09It's a pretty ring.
0:39:10 > 0:39:12- PETER:- Very investable business.
0:39:13 > 0:39:17Manu, you messed that up, didn't you? You came in...
0:39:17 > 0:39:18- KELLY:- You're not out yet.
0:39:18 > 0:39:21You've got it all yourself now. You could take this.
0:39:21 > 0:39:22Ooh, see.
0:39:23 > 0:39:25You can take it.
0:39:26 > 0:39:27It's all yours.
0:39:35 > 0:39:37Manu, I think you're a good guy.
0:39:37 > 0:39:38I think you do have a business.
0:39:39 > 0:39:43It's not for me, though. I'm not going to invest £100,000 in it.
0:39:44 > 0:39:47I wish you all the best with it. I think you've got something.
0:39:47 > 0:39:50Though it's not for me. Well done, though, but I'm out.
0:39:54 > 0:39:57Despite his best efforts to persuade the Dragons
0:39:57 > 0:40:01of the merit of his business, a stoical Manu leaves the Den
0:40:01 > 0:40:04without the £100,000 he was looking for.
0:40:08 > 0:40:10From youth to experience.
0:40:10 > 0:40:11Hello, Dragons.
0:40:11 > 0:40:13I was looking forward to that moment.
0:40:13 > 0:40:16The Den appeals to entrepreneurs of all ages.
0:40:16 > 0:40:22This is a unique way of making an instrument which can produce the same sound as a double bass makes.
0:40:22 > 0:40:27As you flush the toilet, you can now wash your hands.
0:40:27 > 0:40:30That is very hygienical.
0:40:34 > 0:40:38One inventor, Alan Wright, a civil engineer,
0:40:38 > 0:40:40was looking for £20,000
0:40:40 > 0:40:43for a 10% stake in his new shower pump.
0:40:43 > 0:40:47It's a little pump which does the job of a pump 20 times bigger.
0:40:47 > 0:40:52We have a situation where the pump is off.
0:40:52 > 0:40:53Bingo!
0:40:55 > 0:40:56We've got a shower.
0:40:58 > 0:41:00Clarity is crucial with the Dragons,
0:41:00 > 0:41:02especially with an invention.
0:41:02 > 0:41:06But the Den struggled with Alan's plan to keep things simple.
0:41:06 > 0:41:10Why is your pump one-twentieth of the size of a normal pump?
0:41:10 > 0:41:14The pump's got a UK patent, granted last year...
0:41:14 > 0:41:16That doesn't make it smaller.
0:41:16 > 0:41:19- A patent doesn't make it smaller. - It does.
0:41:19 > 0:41:22It's an intelligent pump.
0:41:22 > 0:41:25A pump can't be intelligent unless you've made it intelligent somewhere.
0:41:25 > 0:41:27It's all down to physics.
0:41:27 > 0:41:29It's intelligent physics.
0:41:31 > 0:41:34I find it difficult to invest in something I don't understand
0:41:34 > 0:41:37and you're not really giving me a description of how it works.
0:41:37 > 0:41:38Right.
0:41:38 > 0:41:42It fell to Deborah Meaden to try and make the situation clear.
0:41:42 > 0:41:48So your main selling point is you've got a cheaper way of doing the same job as a £250 pump?
0:41:50 > 0:41:53Maybe I should have said that earlier! Sorry.
0:41:54 > 0:41:56A cheaper version of what's already on the market
0:41:56 > 0:41:58or a breakthrough product?
0:41:58 > 0:42:00The Dragons were left torn.
0:42:02 > 0:42:04I can't decide whether this is ingenious or useless.
0:42:04 > 0:42:09This IS ingenious, because the presentation was at the Institute of Physics.
0:42:09 > 0:42:11I mean, these guys aren't idiots.
0:42:11 > 0:42:14They gave me the prize.
0:42:16 > 0:42:18Everybody who fits this
0:42:18 > 0:42:22sends me recommendations. They say, "This is unbelievable".
0:42:22 > 0:42:26I don't believe you. I don't believe everybody...
0:42:26 > 0:42:27Not everybody, no.
0:42:27 > 0:42:30- You said everybody. Now you're saying not everybody?- I'm sorry.
0:42:32 > 0:42:35Ultimately, the Dragons failed to be convinced,
0:42:35 > 0:42:39perhaps because of Alan's pitch rather than his ingenuity.
0:42:39 > 0:42:43This needed quite an organised presentation.
0:42:43 > 0:42:47And it's come out in quite a disorganised way.
0:42:47 > 0:42:49Before you say anything, can I just...?
0:42:49 > 0:42:53Alan, I think I'd rather do community service than invest in this.
0:42:53 > 0:42:54I'm out.
0:42:54 > 0:42:56OK.
0:42:58 > 0:43:01Alan left the Den with only his self-belief.
0:43:02 > 0:43:04He thinks we're mad.
0:43:04 > 0:43:06We're not always mad when we don't invest.
0:43:14 > 0:43:16Some of the big designer names on the high street
0:43:16 > 0:43:18started life on a university campus.
0:43:18 > 0:43:21And our next on-trend entrepreneurs,
0:43:21 > 0:43:23Tom Carson and Chris Rea,
0:43:23 > 0:43:25are hoping they can replicate that model
0:43:25 > 0:43:28and gather a cult following for their own designer clothes label
0:43:28 > 0:43:32amongst the UK's two million university students.
0:43:59 > 0:44:01Hello, Dragons. We're Young Ones.
0:44:01 > 0:44:04My name's Chris. This is my business partner Tom Carson.
0:44:04 > 0:44:06We're here today seeking £75,000
0:44:06 > 0:44:10in return for 15% equity in our clothing company.
0:44:10 > 0:44:13Young Ones is a new clothing brand
0:44:13 > 0:44:15that's rapidly emerging across universities in the UK.
0:44:15 > 0:44:18Our core skill is at spotting trends
0:44:18 > 0:44:21and bringing students cool products at affordable prices.
0:44:21 > 0:44:24We first did this reacting to the onesie trend in 2011,
0:44:24 > 0:44:29where we were quickly able to source, manufacture and supply a high-quality onesie
0:44:29 > 0:44:32at half the price of our major competitor.
0:44:33 > 0:44:37Due to student demand, we then started making custom onesies for sports groups and teams.
0:44:39 > 0:44:41With their own custom logos
0:44:41 > 0:44:43and their own fabric choices.
0:44:43 > 0:44:46And we are now the UK leading custom onesie supplier.
0:44:47 > 0:44:51We've developed a network of 15 university brand managers.
0:44:53 > 0:44:56They're paid on a commission basis to promote our products.
0:44:56 > 0:44:58We hope to grow this over the next three years
0:44:58 > 0:45:02in the UK and also the east coast of America in colleges.
0:45:02 > 0:45:06We'd really like to emphasise you're not investing in a onesie company.
0:45:06 > 0:45:09You're investing in a new, exciting and fresh clothing brand.
0:45:09 > 0:45:13As our brand grows, we believe we can be the trendsetters
0:45:13 > 0:45:17for all young people in the United Kingdom and globally.
0:45:18 > 0:45:20Thank you very much for listening to our pitch.
0:45:20 > 0:45:23We'd now like you to check out our products and we would love it
0:45:23 > 0:45:26if any of you would be willing to try on the custom onesies we have made for you.
0:45:26 > 0:45:28Right(!)
0:45:29 > 0:45:31- DUNCAN:- I so want a onesie.
0:45:31 > 0:45:33- PIERS:- Shall I put it on?
0:45:33 > 0:45:37A self-assured pitch from this young Exeter University duo.
0:45:37 > 0:45:40They're looking for £75,000
0:45:40 > 0:45:44in return for 15% of their student clothing company.
0:45:44 > 0:45:46LAUGHTER
0:45:46 > 0:45:48I've spotted a design problem!
0:45:49 > 0:45:51- KELLY:- It's perfect, Piers!
0:45:53 > 0:45:55Piers Linney seems taken with his onesie,
0:45:55 > 0:45:59but will he be at one with their business?
0:46:01 > 0:46:03So how much life have the onesies got?
0:46:03 > 0:46:07I mean, to me... I've seen onesies. Christmas, they were everywhere.
0:46:07 > 0:46:09To me, they seem a bit of a fad.
0:46:09 > 0:46:13I think it's fair to say that people believe it could be a fad.
0:46:13 > 0:46:18But we believe it's not something that's come into fashion before
0:46:18 > 0:46:21and people wear it outside for six months and it goes away again,
0:46:21 > 0:46:23because they're trying to make a fashion statement.
0:46:23 > 0:46:27It's something that you wear at home, when you're comfy, when you're on your sofa.
0:46:27 > 0:46:31In that respect, it's not something that's going to come in and go out of fashion.
0:46:31 > 0:46:35I think you're right. I think the onesie will last.
0:46:35 > 0:46:37Are you trying to be like the new Aubin & Wills,
0:46:37 > 0:46:41that kind of sort of retro, college-type of look?
0:46:41 > 0:46:46Yeah, I feel a few years ago, the Jack Wills style was very big on university campuses.
0:46:46 > 0:46:48That was the trend at the time.
0:46:48 > 0:46:52I feel that's been and gone, along with other brands such as Superdry.
0:46:52 > 0:46:56And I feel there's a gap in the market to be that new young brand...
0:46:56 > 0:46:59on university campuses.
0:46:59 > 0:47:01And I really think we could be that.
0:47:01 > 0:47:05The Jack Wills model started exactly as you did,
0:47:05 > 0:47:08so it hit all the university campuses.
0:47:08 > 0:47:11It didn't spend a fortune on advertising budgets.
0:47:11 > 0:47:16It just got people who looked cool in their clothes going around giving away a load of stuff, actually.
0:47:16 > 0:47:18Is that your plan, to do the same sort of thing?
0:47:18 > 0:47:22Yeah, I think so. I think that we've seen their model
0:47:22 > 0:47:23and we've seen it work,
0:47:23 > 0:47:27and I think the universities are crying out for the next company to come in and do that.
0:47:27 > 0:47:29I think the market's there to bring in a new one.
0:47:29 > 0:47:31What makes you think you're designers?
0:47:33 > 0:47:35What makes us think we're designers? Um, well,
0:47:35 > 0:47:37we're not designers. We're...
0:47:37 > 0:47:40I believe what we've been doing to date
0:47:40 > 0:47:46is spotting trends that are unaffordable to students and bringing them affordable options.
0:47:46 > 0:47:48Also, we're taking items that are around
0:47:48 > 0:47:51and taking a slight twist to them.
0:47:51 > 0:47:55If you want to stand out in the world of fashion and to become a brand,
0:47:55 > 0:47:58you have to have your own brand identity.
0:47:58 > 0:48:02And I don't see it as a big business unless you get somebody in
0:48:02 > 0:48:05that is physically going to design the brand,
0:48:05 > 0:48:09design the look, and have a story attached to the brand.
0:48:09 > 0:48:12Yeah, but if you invested, you could become their designer.
0:48:12 > 0:48:13Well, I haven't decided yet,
0:48:13 > 0:48:17but I'm just saying what you're selling right now is not very appealing.
0:48:17 > 0:48:21Everyone that's come into contact with Young Ones has really bought in to our ethos.
0:48:21 > 0:48:24This has included celebrity endorsement
0:48:24 > 0:48:27from the sports industry, music industry and TV.
0:48:27 > 0:48:28Who are they?
0:48:28 > 0:48:30Made In Chelsea, Oliver Proudlock.
0:48:30 > 0:48:33He was wearing a onesie and Tweeting about that.
0:48:33 > 0:48:36In the sports industry, Alex Dowsett, who's a cyclist for Movistar Racing,
0:48:36 > 0:48:39who said, "Can you design me a onesie?"
0:48:39 > 0:48:43We didn't go out and actively seek these people. They came to us.
0:48:46 > 0:48:48A confidently delivered claim
0:48:48 > 0:48:52from the onesie boys about their brand's celebrity following.
0:48:52 > 0:48:57But has Duncan Bannatyne already spotted a fatal flaw?
0:48:59 > 0:49:03I'd be very careful that you don't get challenged with that YO.
0:49:04 > 0:49:06By the way.
0:49:06 > 0:49:08From somebody who owns everything YO.
0:49:08 > 0:49:10YO! Sushi man.
0:49:10 > 0:49:13You won't get round Simon Woodroffe's trademark.
0:49:13 > 0:49:15Well, we have trademark for the name Young Ones
0:49:15 > 0:49:17for a clothing brand.
0:49:17 > 0:49:20Yeah, but you're not using Young Ones, you're using YO.
0:49:20 > 0:49:22And he has YO and YO! globally.
0:49:22 > 0:49:24He owns it.
0:49:24 > 0:49:26So you can't put YO
0:49:26 > 0:49:28on any of your clothing.
0:49:28 > 0:49:30And once you start to scale,
0:49:30 > 0:49:33he'll close it. You haven't created a brand.
0:49:33 > 0:49:36I think you've got a problem with YO as it is,
0:49:36 > 0:49:38so I'm going to say I'm out.
0:49:41 > 0:49:43An abrupt exit from Peter Jones.
0:49:43 > 0:49:47But with the duo's sales so far ignored,
0:49:47 > 0:49:51Kelly Hoppen wants to drill down into their financial performance.
0:49:52 > 0:49:54How much money have you made so far?
0:49:54 > 0:49:57So far, our first year of trading was last year
0:49:57 > 0:50:00and we had revenue of £96,000,
0:50:00 > 0:50:03with a net profit of £36,000.
0:50:03 > 0:50:05Quarter 1 of this year up to now,
0:50:05 > 0:50:08we've had revenue of £76,000,
0:50:08 > 0:50:11with a net profit of £34,000.
0:50:11 > 0:50:14What were you selling these at?
0:50:14 > 0:50:17The onesies are RRP at £59.99.
0:50:17 > 0:50:19And what do they cost you?
0:50:19 > 0:50:21They cost us £16 per unit.
0:50:21 > 0:50:24- £16. And you're selling them online? - Yes.
0:50:24 > 0:50:26And do you have any overheads?
0:50:26 > 0:50:29- You don't have a warehouse or an office or...?- No.- No.
0:50:29 > 0:50:31- You work from home?- Yes.
0:50:31 > 0:50:35- So there's no retail costs anywhere, no shop or anything?- No.
0:50:36 > 0:50:38- This is a partnership?- Yes.
0:50:38 > 0:50:40So if you got an investment,
0:50:40 > 0:50:44you would put all the assets into the company?
0:50:44 > 0:50:49- Yes.- What else have you got that's going into the company? Have you got stock, is there money in the bank?
0:50:49 > 0:50:52So we've got £40,000 cash in the bank.
0:50:52 > 0:50:55We've got £10,000-worth of debtors.
0:50:55 > 0:50:59We've got stock of £13,000
0:50:59 > 0:51:04and we've got another £5,500-worth of fabric.
0:51:04 > 0:51:07So you've got £68,000-worth of things to transfer into the company.
0:51:11 > 0:51:14An ace or two up the sleeves of Tom and Chris,
0:51:14 > 0:51:17with a relatively healthy balance sheet.
0:51:17 > 0:51:21But is there something troubling Deborah Meaden?
0:51:23 > 0:51:27I think there's a conflict with having a Dragon on board.
0:51:27 > 0:51:30There's something about the struggling, you know,
0:51:30 > 0:51:34"We're students and we're going to get out there" and there's something very cool about that.
0:51:34 > 0:51:38The minute you've got somebody high-profile
0:51:38 > 0:51:40who has got all of the cash to make it happen,
0:51:40 > 0:51:43you stop becoming the very thing
0:51:43 > 0:51:45that is making you successful at the moment.
0:51:45 > 0:51:48Without your investment, it makes it very difficult
0:51:48 > 0:51:51for us to go into these universities and actually have a presence.
0:51:51 > 0:51:54So you're going to give that presence.
0:51:54 > 0:51:56But with the cash comes the Dragon.
0:51:56 > 0:52:00You are something different the day after you've taken that investment.
0:52:03 > 0:52:07But an investment is what the two students need.
0:52:07 > 0:52:13So will Kelly Hoppen, the Dragon with the credentials to add real value to a fashion brand,
0:52:13 > 0:52:16buy in to the business?
0:52:17 > 0:52:21I think that if you want to build this into a proper brand,
0:52:21 > 0:52:24which I get the feeling you're very driven, you two, and that's what you'd want,
0:52:24 > 0:52:29I think you need to sit down and regroup and decide how you're going to do that.
0:52:29 > 0:52:32I think, you know, you can get inspiration from other people,
0:52:32 > 0:52:35but I think you have to come up with your own look and feel.
0:52:37 > 0:52:40It's not something that I would invest in,
0:52:40 > 0:52:43but I do wish you luck. So I'm afraid I'm out.
0:52:45 > 0:52:47I really like you guys.
0:52:47 > 0:52:49I think we'll probably see you again, maybe here, even.
0:52:49 > 0:52:51I think you're entrepreneurs at heart.
0:52:51 > 0:52:55I'm not sure this is a business to invest £75,000 in,
0:52:55 > 0:52:56if I'm really honest.
0:52:56 > 0:52:58Especially at your valuation.
0:52:58 > 0:53:00It's quite a big valuation for a start-up.
0:53:00 > 0:53:03Best of luck to you, but I'm out.
0:53:07 > 0:53:11Three Dragons out and two remain.
0:53:11 > 0:53:15Duncan Bannatyne has been concerned over the copyright,
0:53:15 > 0:53:17but impressed by the balance sheet.
0:53:17 > 0:53:20But it appears he's come to a decision.
0:53:23 > 0:53:27Well, you know, I think there are a few problems and issues to iron out,
0:53:27 > 0:53:31but that doesn't make it totally uninvestable.
0:53:34 > 0:53:35So I'm going to make you an offer.
0:53:37 > 0:53:39OK, because I believe in the two of you.
0:53:40 > 0:53:43So, I'm going to offer you all of the money, £75,000.
0:53:45 > 0:53:48But I want 40% of the company.
0:53:56 > 0:53:58Um...
0:53:58 > 0:54:02How flexible is your offer? Would you consider dropping to 30?
0:54:05 > 0:54:08No, I think I've fully valued the risk,
0:54:08 > 0:54:13and it's about 50/50 whether or not I'll enhance or destroy the brand
0:54:13 > 0:54:15by wearing a onesie.
0:54:17 > 0:54:18Um...
0:54:20 > 0:54:23Would you consider, after you get your investment back,
0:54:23 > 0:54:25sliding the scale slightly down?
0:54:27 > 0:54:28No.
0:54:28 > 0:54:30I want 40%.
0:54:30 > 0:54:31I think it's a good offer.
0:54:31 > 0:54:33OK. Er...
0:54:33 > 0:54:34Yeah.
0:54:48 > 0:54:49Um...
0:54:49 > 0:54:50Deborah?
0:54:52 > 0:54:53You guys are good.
0:54:54 > 0:54:57Which tells me that really the talent lies in the two of you,
0:54:57 > 0:55:01not necessarily within... that product.
0:55:02 > 0:55:06And I don't have the same vision on the size and the scale.
0:55:06 > 0:55:09So I'm afraid I'm about to say those two words.
0:55:09 > 0:55:11Regretfully...
0:55:11 > 0:55:12I'm out.
0:55:12 > 0:55:13- Thank you.- Thank you.
0:55:19 > 0:55:20Um...
0:55:20 > 0:55:23Can we have a quick time to have a little discussion between us?
0:55:23 > 0:55:25Yeah. Go to the back of the room, have a little chat.
0:55:25 > 0:55:26Thank you.
0:55:30 > 0:55:32(This is exactly what your dad said not to do.)
0:55:34 > 0:55:36THEY WHISPER
0:55:43 > 0:55:45(But say he does say no, what do we do then?)
0:55:45 > 0:55:48NERVOUS WHISPERING CONTINUES
0:56:00 > 0:56:02Um, Duncan,
0:56:02 > 0:56:04thank you very much for your offer.
0:56:04 > 0:56:05Um...
0:56:10 > 0:56:11(Will your dad be all right?)
0:56:17 > 0:56:19- Yeah, we'd like to take your offer. - I thought you would.
0:56:19 > 0:56:21- Well done.- Thank you very much. - Great decision.
0:56:21 > 0:56:23- Cheers.- Look forward to it.
0:56:23 > 0:56:24Fantastic.
0:56:26 > 0:56:29Whatever Chris's dad might think of their negotiation skills,
0:56:29 > 0:56:32a delighted Chris and Tom
0:56:32 > 0:56:35exit the Den with all the money they asked for.
0:56:37 > 0:56:39Oh, God!
0:56:41 > 0:56:42That's mad!
0:56:43 > 0:56:44- PETER:- It's going to be tough.
0:56:44 > 0:56:47If anyone can do it, Mr Bannatyne can do it.
0:56:47 > 0:56:50The investment of the year there. Yeah, really.
0:56:52 > 0:56:54When we spoke to my dad the night before, he said,
0:56:54 > 0:56:56"Whatever you do, son, don't go over 30%".
0:56:56 > 0:57:01- It was ringing in my ears. - I remember this conversation in his living room last night.
0:57:01 > 0:57:04Him saying, "Guys, don't take 40%".
0:57:06 > 0:57:09Yeah, I'm pretty nervous about calling him.
0:57:09 > 0:57:11I'm going to have to...
0:57:11 > 0:57:14I'll just say that we got really... We did it for 15%!
0:57:20 > 0:57:24So, Chris and Tom won an investment from Duncan Bannatyne,
0:57:24 > 0:57:27who called it his deal of the year.
0:57:27 > 0:57:29If they can make their business fly,
0:57:29 > 0:57:31maybe they can set a trend amongst students.
0:57:31 > 0:57:34A good way to pay off the fees.
0:57:34 > 0:57:38But that brings proceedings in the Den to a close for another series.
0:57:38 > 0:57:40Our successful entrepreneurs now get down to business
0:57:40 > 0:57:44and the Den will get back to business before long.
0:57:44 > 0:57:45Goodbye.
0:57:49 > 0:57:55This is the easiest decision not to invest I think I've ever made on Dragons' Den.
0:57:55 > 0:57:56I'm going to make you an offer.
0:57:56 > 0:57:58Sorry. It's...
0:57:58 > 0:58:00I can't believe this.
0:58:00 > 0:58:05Unless you're willing to call whoever you work for and resign, it doesn't work.
0:58:05 > 0:58:07You said you needed the money. I've offered you the money.
0:58:07 > 0:58:10I'm afraid we won't be able to accept that offer.
0:58:11 > 0:58:14I think I could really help build this business for you.
0:58:14 > 0:58:16- We're going to go with Piers and Kelly.- Yes!
0:58:18 > 0:58:22Yeeee-haaaa!
0:58:33 > 0:58:36Subtitles by Red Bee Media Ltd