Episode 1 Dragons' Den

-You are deluded.

-It doesn't matter what the business is,

it's my return that matters.

I would want 40%.

-Would you invest in it?

-I'm irritated.

-I'm out.

These are the Dragons.

Wealthy, well-connected,

innovative

and influential.

Each week, they make or break the dreams

of dozens of budding entrepreneurs.

In the Den, leisure and marketing expert Deborah Meaden.

Telecoms giant Peter Jones.

Hotel and health club owner Duncan Bannatyne.

Founder of her own global interior design brand, Kelly Hoppen.

And Cloud computing expert and former city financier, Piers Linney.

With thousands to lose, but millions to gain,

the Dragons are prepared to fight for that next shrewd investment.

In the last decade,

over 900 entrepreneurs have faced the Dragons,

and investment offers of £14.5 million

have been made in this room.

To face them takes nerve and vision,

so who will leave with the Dragons' money?

Welcome back to Dragons' Den,

where a fresh batch of cash-hungry entrepreneurs

are readying themselves for the elevator pitch of a lifetime.

Coming up on tonight's show...

-It's taken you to the edge, hasn't it?

-Yes.

If I start becoming a regular,

I'll learn how to throw a girl in the air?

What just happened?

I'm sorry to burst your bubble, but that is hideous.

Buh-buh-buh-buh!

LAUGHTER

Do you want a job?

First into the den is Scott Cupid.

He was a banker,

but decided to swap his job for something with a little more swing.

Ready to have fun? Yeah?

Can you believe this?

SWING MUSIC PLAYS

Hi, Dragons. Thanks for your time.

My name is Scott, I'm here to tell you about Swing Patrol.

We'd like to offer 10% equity and we'd like to ask for £65,000.

So, what is Swing Patrol?

It's the biggest swing dance school in the world.

We have 1,200 students a week, we operate in 27 venues

across London, we have a very talented award-winning teaching team.

And we have momentum and growth.

We run a festival, the annual London Swing Festival, we run competitions,

we run a lot of big social dances, we do corporate entertainment.

We provide a lot of dancers, we have two great troupes,

it's a very immersive experience, vintage DJs,

the whole thing you might require under a swing umbrella.

We would love you to do a two-minute lesson with me.

It'll be fun, it'll be easy. You may even learn a step.

What do you say?

-I'm up for it.

-I'm going to come and dance.

-All right. Hit it, Mr Music.

Five, six, five, six...

A pitch with a spring in its step from Scott Cupid, who is seeking

£65,000 in return for a 10% share in his swing dance business.

Thanks, Mr Music Man. Thank you, Dragons, for jumping in.

We appreciate it.

Deborah Meaden, who recently swapped the boardroom for the ballroom,

gets straight down to business.

That was fun. Let's look at the business.

I think you called yourself

the biggest swing dance school in the world.

-Yes.

-Um...how does that turn into cash?

Well, the revenue has had a steady growth over the last five years.

It started at perhaps 36,000, then it's gone up to 84,000,

120,000, 180,000, 210,000, and the last financial period was £280,000.

-The gross profit has reached £190,000.

-And net profit?

This year it was 67,000.

It's had a solid growth

and all the projections are it should continue to grow.

So how does it work?

It's like a Zumba, really, in terms of the model.

I mean, that's not really dance.

We wouldn't pretend to be as big as a Zumba

-because they are so massive.

-But that's where you'd like to go.

It's the same joy, they've really done something clever.

When people come to a Swing Patrol class,

they're interacting with people, they've been online all day,

here's your chance in one class, you'll interact with 30 or 40 people.

I know, it's an art form, so it's not going to go anywhere.

But the interest levels in it might.

I've been involved for 15 years

and I've been told for 15 years that it's about to die out.

And all I've seen is it continue to grow.

I think, as long as we keep pushing it,

we're keeping it in people's mind.

I can't express how much I really enjoyed that.

-I didn't want it to end. It was fantastic.

-Thanks.

Have you tried this in health clubs?

Zumba's been great, no doubt about it.

But we do think there's room for something new.

We have this fitness programme called the Charleston Challenge.

It's high-energy, it's good exercise, it's great music, but it's a secret.

Again, we haven't done it very well,

we certainly haven't put it through a chain or anything.

If I start becoming a regular, I'll learn how to throw a girl in the air?

-In time, yes. Absolutely.

-How long will that take?

-A couple of months.

Are you up for that, Deborah? You and me, in there.

I'd like to see you practise with someone else

before you throw me in the air.

Deborah Meaden is keeping her feet firmly on the ground.

And a pragmatic approach is also being adopted

by telecoms tycoon Peter Jones.

The issue that really hits me straightaway is

how do you build this into a business

that can make a lot of money?

These sell-out events, it's just been incredible,

the last 8 to 12 months, that we are sadly turning people away.

Part of that is, if we just had a swing club with a bit more room,

that we could have the same events on Friday and Saturday nights,

we could almost prove to the Dragons that we can do it elsewhere as well.

And is there such a location

that you could get that isn't ridiculously expensive?

The one we have in mind is about 35,000 square feet.

-What is the rental of that building? What would it cost you?

-£50,000.

But you'd have to fit it out, this is an old warehouse.

And what is the cost of that?

According to the people we've met, the contractors, about £15,000.

It needs to be a sprung dance floor.

Of course, we'd require security, we'd require a bar...

You mentioned a bar, you're not thinking of putting alcohol in it?

-Yes.

-That changes the landscape quite considerably.

We'd like to think of this ballroom being a multipurpose room.

It would be a place where you could do fitness things

and so forth, and we want it to be almost 24/7.

The details of Scott's planned warehouse conversion

have set alarm bells ringing amongst the Dragons.

Kelly Hoppen is quick to voice concern

over his optimistic estimate of the potential cost.

I can tell you, being in the building business,

and design business, there is no way you could do that for £15,000.

And I'm not sure that your model's right.

I'm just trying to get my head around it.

But having said that, if you have the whole thing done,

that becomes your franchise model.

Which will be easier to then sell.

My hope is that we could talk a Dragon into being involved in

one of them and then showing you how successful it was

and then that could be done somewhere else quite easily,

because we've done it once.

Scott, I'll tell you where I am.

I think, if you had come in and pitched yourself trying to create

you know, the Zumba of swing, that's potentially interesting.

Retrenching into a venue and opening a nightclub,

no matter what happens there, it doesn't work for me.

-Best of luck, I may come down one night.

-You'd be very welcome.

I'm out.

Despite a promising start,

Scott's prospects of securing an investment have taken a serious hit.

Will Deborah Meaden also be turned off by the direction

he wants to take the business?

The whole venue thing worries me, honestly.

And if you are wedded to that, it worries me enough to say...

-I'm not, Deborah.

-I was going to say, we need to stop the conversation.

If there was a chance a Dragon thought Swing Patrol was something viable,

I'd give you a commitment that I'd walk away from this idea.

An ability to think on his feet, rather than dance with them,

appears to have saved Scott from disaster.

But will his swift change of direction have swung

the remaining Dragons in his favour?

You're obviously quite flexible in how you would carry it forward.

I love it, so I'm going to make you an offer.

I'm going to offer you half the money. I'd want 10%.

Thank you for your offer.

I'm an exercise freak, I run or train everyday,

I love to dance, and I think that there is definitely

a business model here that could be rolled out.

I'd like to offer you half the money for 10%.

Because I think there are lots of good brains in this room

and I think that we can all offer something different.

-And will you let me throw you up in the air?

-Yes.

-Hey!

Two enthusiastic offers from Kelly Hoppen and Duncan Bannatyne.

Will Peter Jones also be prepared to supply the cash needed

to elevate Scott's business?

Scott, I think it's clearly...

It's wonderful, everything about it is great.

You'd even like that we all wear stripy socks in the Lindy Hop world,

-did you know that?

-Do you?

-Every one of us, yes.

-So I'm in fashion?

-You are, yes.

-Finally!

You know, I think I'm a bit young to go on Strictly just yet.

So I'll hold that opportunity. And I hope it might come in years to come.

But I think that...

You've got some incredible offers.

So I'm going to say I'm out,

but I wish you the very best of luck, Scott.

Four Dragons have now declared their positions.

And with two offers already on the table,

it's time for Strictly Come Dancing contestant, Deborah Meaden, to have her say.

I've often said to people, you know,

-loving something doesn't make it a good investment.

-Sure.

And that sometimes you have to take a back step and say,

because I love it, I can't see a clear picture.

But what I like about you is your credibility and your history.

-Fair enough.

-So I'm going to make you an offer.

-Thank you.

-And I'm going to offer you all of the money.

But I want 20% of the business.

I need a couple of minutes, if that's OK. Just one or two.

I've built this on a real passion for dance.

-So I think I'm going to accept Deborah's offer.

-Thank you.

Well, now I'm allowed to be excited.

Brilliant. There we are. You know, and that was my head over my heart.

But now I'm allowing my heart to get excited. Brilliant.

So, Scott waltzes out of the Den

having secured both the £65,000 investment he was seeking

and the backing of self-confessed dance nut, Deborah Meaden.

Oh, goodness! I can't believe it, it's so amazing.

It's a perfect fit, isn't it? It's all about timing.

What, cos she's been in Strictly?

Yes, honestly, Duncan, and I understand it for that reason.

Just for that reason.

Next into the Den, a Lincolnshire couple, John and Claire Brumby.

Crisps are one of the nation's favourite snacks.

We munch our way through

an astonishing 6 billion packets every year.

John and Claire believe their low-fat vegetable crisps

are a perfect fit for these health-conscious times.

But will the Dragons bite?

Hello, Dragons. I'm Claire. And this is my husband John.

We are here today to ask for £75,000 in return for 15% equity

in our business, Scrubbys Vegetable Crisps.

Our crisps are at least 30% less fat

and 18% less calories than standard fried vegetable crisps.

They are also gluten-free.

We launched Scrubbys in May 2012 with the intention of bringing

a healthier snacking option to the market.

And we are on a mission to bring healthier snacking to the masses.

The UK snacking market is ever growing and is currently worth

£3.3 billion, with the crisp sector worth £930 million.

We've got some great high-profile listings to date,

namely Harrods, Fortnum and Mason and Partridges.

Our crisps have been awarded a gold star at the Great Taste Awards

and Scrubbys has been named a cool brand.

We have secured a listing with the online supermarket Ocado.

And we are also launching into circa 200 Waitrose stores

in the "free-from" section.

A low-key pitch from John and Claire Brumby,

who are looking for £75,000

in exchange for 15% of their business.

In a saturated market,

Deborah Meaden wants to find out more about their competition.

So, Claire, John,

what other products are there in this marketplace?

Because there's quite a lot of

-vegetable-type crisp products around, aren't there?

-There are.

Apart from ours, all the other vegetable crisps on the market

are standard fried, whereas we use a unique technique.

They're fried at a much lower temperature, below 130 degrees,

whereas standard frying is approximately 180 degrees.

-How big is that bit of the market?

-The regular, standard fry?

That's massive. The biggest company, I think they sold for 100 million.

So, has this ship already sailed?

In terms of the mass market?

Not at all.

We don't believe so, because of the more health-conscious consumer,

we believe that we'll be giving a product that has

all the fantastic flavours.

But you don't get the greasy aftertaste on your fingers

or on the roof of your mouth when you've eaten the product.

You're right, they are very nice, actually.

Often, when you do get a lower fat in a healthier snack,

sometimes you compromise on the taste.

So we wanted to still retain the taste,

but we also wanted to get a healthier fat,

which is why we settled on this cooking method - vacuum frying.

I know you're saying it's different because of the way it's made,

but how difficult is it going to be,

without a huge amount of money into marketing,

to be able to get the message across?

We've done lots of markets, we've done lots of festivals,

and people come to us and tell us

we love your crisps, they're not as greasy.

And it's beautiful because you stand there

and they tell you all your USPs. You don't even have to say anything.

These passionate entrepreneurs believe

they have a product that sells itself.

But Duncan Bannatyne is eager to establish

whether current sales support the hype.

What's your turnover been like, financially?

Year one, obviously it was just a part year,

-we only had one product, and we sold £20,000 worth.

-£20,000 worth?

-Yes.

Year two was 75. And this year we're projecting 320,000 sales.

How are you jumping from 75,000 to 320?

Because we are launching two other products this year and we've also got

the Ocado listing coming on board and the Waitrose listing.

You've done very well.

-Thank you.

-How much money have you put into this?

Physically about £20,000.

We took £15,000 out of our house

and we got a loan from a family member for £5,000.

You own 100% of shares between you?

-No, we've got 75%.

-Who's got the other 25?

One gentleman's got 10% and another gentleman's got 15%.

-What did they put into the business?

-Combined, they've put in £50,000.

They've put in 50, you've put in 20,

so there's £70,000 been spent on it.

We've also had a loan from the Hull and Humber Business Development Fund for £50,000.

The £50,000, do you have to pay that back?

Yes. The Acorn Fund.

We had the 50,000 from the Acorn, we had another 10,000 from Acorn

and we had 15,000 from Finance Yorkshire.

And how are you surviving now?

Have you got other jobs or are you just doing this...?

To be honest, three or four weeks ago, we just...

We...we hit the wall.

So I had to take a job.

But we haven't given up, hence being stood here today.

It's written all over Claire's face.

-It's taken you to the edge, hasn't it?

-Yes.

-You've gone back to work.

-Yes.

-To support your family.

-Yes.

Three children, you've got to, haven't you?

The reason we didn't have any money was because we did get

some personal debt, so we've been climbing ourselves out of that.

That's why we couldn't get a bank to help us or anything.

You've got a dream. You've got a business.

-But you're broke.

-Yes.

We're not going to give in, you know, we're going to build the brand

and it's going to be a fantastic brand.

Could John and Claire's complex financial situation spell disaster

for their initially strong pitch?

Deborah Meaden and Piers Linney have reached their conclusions.

It's quite hard, this one, we're trying to work out

whether it's a business you want to invest in,

as opposed to help someone with their personal finances.

I know probably everyone says this to you

and you hear this every single day 100 times over.

But there's no way we're going to stop.

I still think that the ship has sailed slightly on this one.

I just don't think it's going to scale the way you think it might.

-I'm out.

-Thank you.

I see the pressure on this business from every single side.

So, as a business decision, I won't be making you an offer.

So I'm out.

Thank you.

Two Dragons have walked away from a deal.

Will Duncan Bannatyne be any more willing

to take a chance on John and Claire?

There's a huge risk here for an investor, I think.

So I'm not going to risk £75,000.

But I am going to make you an offer.

I'm going to offer you have the money, £37,500 for 12.5%.

OK, thank you.

Remember, the rules of the Den state that entrepreneurs must get

all the money they've asked for or they get nothing at all.

Time for Kelly Hoppen to have her say.

Part of me is sitting here with my heart

and then there's the business side of me.

But I can't sit in this chair and make a commitment to you

that I can make this work

if I don't honestly think that I can.

So...

..it's with sadness, but I'm afraid I'm out.

OK, thank you.

Four Dragons have now declared their positions.

John and Claire's chances of securing the cash injection

their business so desperately needs

now rest with Peter Jones.

Duncan, can I ask you how hard you're going to work on this investment?

I'll put in whatever effort I need to put in, Peter.

And I'm sure you will as well.

That's me doing it, then.

LAUGHTER

-Um...

-We'll do all the work.

What's the £60,000 you owe to Acorn? When was it taken out?

February 2012.

-And the other one, the £15,000?

-15, yes, from Finance Yorkshire.

-And Finance Yorkshire gave you that over what term?

-Five years.

-And when did they give it to you?

-August 2012.

OK, so that was your lifeline then.

John, Claire, I'm sorry, I can't do it.

It would be really wrong of me.

It's going against everything that is right in my own business head,

to do the deal, so I'm going to tell you unfortunately I'm out.

OK, thank you.

So, having just listened to Peter analysing the loans a bit more,

I think Peter is right, I think the other Dragons are right,

I think my heart led me rather than my head. And...

-I wish you the best of luck, but I'm out.

-OK, thank you.

-Good luck.

So, heartbreak for John and Claire, who leave the Den with nothing.

They came close, but in the end none of the Dragons were prepared

to stake their money on the couple's low-fat vegetable crisps.

I thought initially that our passion and drive did come across,

so it's disappointing not to have crossed the line.

We're going to launch into the listings that we've got,

it's just a shame we haven't got a Dragon to do that with us.

However, we'll get through.

-'It doesn't work.'

-It's your problem.

-'You're not selling them.

-'Why are you doing this?

-I'm out.'

Other entrepreneurs who tried and failed in the Den

include former military man Phil Parsons

was seeking £98,000

in exchange for a 15% stake in his business...

Oh, my God!

..building and selling the ultimate boys' toy.

Deborah Meaden was keen to put Phil's replicable war machine

through its paces.

Can I do it in my heels?

-Yes, you can do it with your heels.

-Come on, then.

-Just so you know, I've never quite got the hang of...

-Left and right.

Oh, I feel quite powerful in here.

ENGINE FIRES UP

Buh-buh-buh-buh!

Oh!

-That was great.

-Very good.

-Anyone else want a go?

The dragons all enjoyed the ride,

but Peter Jones was concerned by the product's lack of green credentials.

I have a problem with it.

-As it came in, all I got was a complete stench of pollution.

-Yes.

You should have come in here

with an electric version of what you've just done.

That's anathema to me.

No, a tank has tracks and a big noisy engine.

If you look at it, it looks like a tank, it works like a tank

and to all intents and purposes,

apart from the fact it's small, it is a tank.

Phil viewed the authenticity of his product as a major selling point.

But Kelly Hoppen disagreed.

Do you know, the problem I've got is the fact that it has a gun on it.

-Yes, it's a tank.

-I have a bit of a problem with that

in terms of kids using it.

But it doesn't have to be a tank.

We've had an inquiry from Tokyo, the Robot Restaurant,

they want silver tops with a glass bubble on the top

so they look like space buggies.

I've sold them in Sweden, Germany, France, Spain, Cyprus has got seven,

the King of Jordan has got two.

His tanks may have a royal seal of approval,

but with just 80 sold in the last seven years,

Piers Linney was unconvinced that Phil had the traction

to drive his product to a less regal audience.

Are you the archetypal engineer that can't market?

I know what marketing is.

-Because I'm on a pension, I haven't got the money to do it.

-No.

Well, Duncan can tell you what it's like to be on a pension.

Exactly the same, yes, I've probably got less than you

because I missed some contributions to my National Insurance stamps.

Phil believed that the Den's big guns could help him

target a mass-market.

But while the Dragons may have found his miniature tanks a lot of fun,

none of them felt they were on track to becoming a big seller.

Well done for serving your country for 22 years.

That's something to be amazingly proud of

and well done for creating something out of your passion.

-Why am I being so nice?

-Because you're staring down a barrel.

-Yes.

-Is that loaded?

-I wish!

Your biggest issue, as you said, is finance.

Well, I'm not a financier and I'm not a bank.

I'm here to make an investment. This isn't it. I'm out.

Thank you.

So far tonight, one entrepreneur has triumphed in the Den.

It was just so crazy, I can barely believe it happened.

I'm excited, so excited.

Will any of these budding tycoons succeed in joining him?

It's actually not a bad idea, I just can't bear the design.

I'm not entirely sure what just happened.

You want to sell to modern consumers?

To people who may already be spoiled for choice

in ways to spend their money?

Well, one route is to offer something extra,

a way for customers to customise their product.

And that's what our next entrepreneur is doing.

(Let's go.)

OK. Come on, Matheson.

Good girl.

Ready?

Are you excited?

My tummy's hurting because I'm starving.

Oh, I'm starving too.

Ready?

Let's do this, guys.

Come on in.

Let's go.

Can you all sit down, take your shoes off and walk that way?

Hello, Dragons.

My name's Jennifer and I'm the founder and director of Skribbies.

Today, I'm looking for a £60,000 investment

for a 20% stake in my company.

Dragons, I'd like to take you on a journey,

a journey back to when you were a little dragon.

A time when you would draw and colour in

anything you could get your hands on.

Fast forward to today and as you can see

nothing's really changed.

The freedom to be creative is a critical part of child learning and development

and something Skribbies wants to be a part of

in a fun and functional way.

We've done this with our first product,

which is a range of children's shoes

that children can customise every day from new.

As you can see, they can draw all over their shoes,

then simply wipe it away...

Draw, wipe, draw, simple as that.

It's like a whiteboard on a shoe.

Yesterday I found out that House of Fraser are giving us a concession

and I'm meeting Selfridges and Fenwick this coming week.

We've just been approached

by France's largest shoe retailer to design an exclusive range

and if the deal's successful will be worth in excess of £110,000.

Thank you so much for your time today, Dragons.

I would be happy to answer any questions that you might have.

(Go.)

Thank you very much.

INDISTINCT WHISPERING

A pitch with the cute factor from Jennifer Duthie,

who is seeking £60,000 in return for a 20% stake in her business.

Her draw and wipe children's shoes

appear to have struck a chord with Den creative, Kelly Hoppen.

-Fantastic pitch.

-Thank you.

-And I think,

knowing when my kids were growing up, they were always

-colouring in on everything.

-Yes.

-I have still got things to prove it.

In terms of the shoe, have you designed it,

or have you had a shoe manufacturer design it?

I haven't designed them myself, but I did hire a footwear specialist

who works with several other prestigious brands.

We also went through about 18,

20 months of design development wear testing,

the product itself has gone through testing in independent laboratories.

So it's been very important to us that creating

not only a really cool, well-designed product, but something that is very comfortable.

-In terms of where you think the brand can go...

-Yes.

..will it always be shoes, or would you go into something else?

Um, I think certainly for the next couple of years, next two years,

yes, will be footwear.

But we would really love to use the monster characters,

which are part of our brand and maybe have

plush toys that children can customise

and take the idea on to luggage, yes,

pretty sure that, what you've drawn on your, er,

on your Skribbies.

-What does it say?

-"Best Dragon."

Luckily, it rubs off.

LAUGHTER

Like the idea,

-but it's not new. Is it?

-OK.

-You've seen it before. I have.

-Er, no.

My kids do this on their shoes.

-This material is not unique to you.

-No, it's not.

I'm just wondering, what is it that you think that you've got?

-Sure.

-Have you got something that

you've registered that actually gives you the right to say,

if somebody else copies you, you can protect against it?

We have got a trademark on our logo granted

and we have a design mark granted on the high top form of the shoe,

but in terms of the material itself, there's nothing that we can, sort of, protect.

Um, and I think for us, the threat of imitation is there, for sure.

It's important for us to build our brand, it's always got to be a brand-led strategy for us

and I think we're doing a good job.

We are breaking down major UK retailer doors

and abroad as well.

Deals with department stores have helped convince Jennifer

that her draw on children's shoes have legs.

Piers Linney wants to establish exactly where Skribbies

will sit in an already crowded market.

-Shoe brands out there that lights up, ones with rollers in them.

-Yes.

And that's been done, it can be done.

But where do you, sort of, compete on price compared to...

-Um, in the UK...

-..things?

-..our recommended retail price

is solidly mid-market for a brand of footwear,

which shocked me when I got into this,

because I thought I was going to sell shoes for £25.

It's a particular market, isn't it? Because not everyone's spending

40 quid on a pair of shoes.

-I think for children....

-Well, they're not.

-..actually,

a lot of parents are spending quite a lot of money on children's fashion.

I think, you know, with the Suri Cruise effect

and the pressure that parents have to make their children look good

as well as themselves, it's actually quite high.

So, what happens in the rain?

The drawings don't come off.

As long as it's had ten minutes to dry,

the drawings do not come off in the rain or snow.

Jennifer's product might be designed to withstand

the worst of the temperamental British weather.

But for Deborah Meaden, precipitation levels aren't

the issue when it comes to the shoe industry.

How many children's shoe sizes are there?

At the moment, we have seven sizes so we run from a junior 11 to

an adult size 3.

Then how many colours?

The pink for the girls, the blue navy,

which is sort of a unisex one, and the neon-black which is more

targeted at boys so that's what we have right now.

-OK, so, just to sell one of each shoe, you've got 21 shoes.

-Yeah.

OK. I think you're going to have some working capital issues,

you will find you've got too much tied up in stock

and you're not selling it fast enough.

One of the things that we're going to try

and minimise that risk by is, for example,

with the French retailer, we are designing a range exclusively

for them so we won't hold that stock -

it'll go directly to them.

They have over 700 stores in France.

-OK, so that is...

-It's a big step in the right direction, yeah,

and they approached us as well which was really flattering.

A sceptical Deborah Meaden is temporarily halted in her tracks.

Does the prospect of going toe-to-toe against some of the

biggest players in the global shoe industry appeal to Duncan Bannatyne?

-Jennifer?

-Yes.

-It's a notoriously tough market you're entering into.

Yeah. I went into finance, finance was tough.

I went into online advertising, online advertising was tough.

I thrive in those environments. It's not an issue for me.

Why don't you go into an environment that isn't tough?

Because I've invented a product that's unique, it's different

and we've created a really solid brand behind it.

We've packaged it really well,

we've thought about every single element and how it fits together.

I agree, the packaging is excellent.

The name's great, but it's just such a tough industry.

-Um...

-But what's easy in this day and age?

That's a very, very good question. If I find out, I'll let you know.

Thank you.

THEY LAUGH

Jennifer, it's interesting.

You've pitched something that anybody could do

and you have no protection.

-What's holding me back actually is you.

-OK.

I think you've got a good grasp of where to take the business

and how to go about it and I think you've got a lot of tenacity

-and determination to do it as well.

-Yeah.

Peter Jones may be undecided but Piers Linney has made up his mind.

I think they're cool, I'm going to make you an offer.

Thank you.

-A partial offer. So, I would go for half the money...

-Mm-hm.

..£30,000, um...

..for 12.5%.

-So, I need somebody else really.

-OK.

Jennifer's dream of a Dragon investment is agonisingly close.

Will Peter Jones or Deborah Meaden be prepared to match

Piers Linney's offer of half the cash?

I think there's two things that will make this business work -

one is being able to demonstrate the product.

I think if you manage to get it in front of people,

-explain what it is, I think they're going to like it.

-Yeah.

-Or you're going to have to go for massive brand exposure.

-Yes.

Both of those are going to require a lot more money so, I'm afraid,

however winning you are...

-Thank you.

-..you haven't quite got me over the line.

-OK.

-So, I'm afraid I won't be investing. I'm out.

-OK.

It is one of those sort of weigh-ups for me.

Do you go and invest in you and hope that is £60,000 enough...

..to actually get this properly launched?

-It got close for me, but I'm going to declare myself out.

-OK.

Thank you so much.

So far, none of the Dragons have equalled or bettered

Piers Linney's earlier offer.

Jennifer faces the very real prospect

of leaving the Den empty-handed.

Unless Kelly Hoppen or Duncan Bannatyne throws her

a financial lifeline.

I've expressed my concerns about this industry,

it's a very difficult industry.

Also, it looks great in the box,

but I don't think this is a great shoe when it's worn.

And so, for that reason, I'm out.

I think this is an absolutely brilliant idea, I think that,

with my credibility of design, I could seriously help you with that.

-Yeah.

-I could open up doors, get you into shops.

-Yeah.

I would happily go with Piers. We've worked together before very well.

It's an easy answer for me.

I think you both have everything that I'm looking for and I would

love to accept you coming together if you're still happy to do that.

-I would love that.

-Excellent.

-Thank you. Thank you so much.

-I think it's fantastic. I'm really pleased.

-Well done, great pitch.

-I like your shirt.

-Thank you very much.

-Thank you very much, guys.

Kelly.

-DUNCAN:

-Good luck, Jennifer.

-Thank you. PETER:

-Well done.

-Well done, guys.

-Chuffed with that.

-So, success for Jennifer who departs £60,000 to the good...

-Whoo-hoo!

..having secured the financial backing

of two well-heeled Dragon investors.

-She's good.

-PETER:

-I think you'll do well.

Recently in the Den,

we've seen a surge of design-led businesses coming forward,

spurred on by the presence

of globally-renowned interior design queen Kelly Hoppen.

In my business, we always want new designs, but I think it's flawed.

Husband-and-wife team Paul and Alison Johnson were seeking £100,000

in return for an 18% stake in their bespoke radiator cover venture.

We've been trading since 2012 from a very much standing start yet

we've still been able to get some fantastic endorsements

and testimonials from celebrity designers.

Paul and Alison were pleased with their progress to date.

But Peter Jones felt that they had neglected to canvass

one key industry figure.

The biggest mistake you made 18 months ago,

you didn't speak to one designer in the country that'll tell you

exactly whether this is good or bad.

Which designer?

Kelly Hoppen.

We have spent, for my 39 years in the industry,

-covering up radiators but you try and make them disappear.

-Yes.

What you're doing is saying, "Whoo-hoo, here I am."

You know, it's exactly the opposite of what people want to do.

Everybody said to us,

"We can't believe there's nothing like this on the market."

I mean, I'm sorry to burst your bubble, but that is hideous.

Paul and Alison had encountered one celebrity designer

whose take on their product was anything but glowing.

And Deborah Meaden was about to turn up the heat even further.

What are your trading figures looking like at the moment?

Last year, that was our first trading year, we still sold three products.

That was £1,500 gross turnover.

This year, we've now placed 17 units in people's homes

with £8,100 gross turnover.

Does that sound like a business that's worth £500,000 to you?

Having dismissed the couple's hefty £500,000 valuation,

the Dragons wanted to interrogate their business credentials.

-This is bizarre to me.

-Do you think?

-It is.

What do you do, Paul?

My day job currently is innovation analyst.

I have designed over many years many products

for many different companies.

I was part of the design team that designed

the Eurostar Channel Tunnel train for example.

Paul's impressive track record as a product designer may have been clear

but, sadly, none of the Dragons warmed to his latest creation.

It fell to Piers Linney to deliver the final verdict.

I'm not going to tear this to pieces,

because I'm sure we've all got better things to do.

-Thank you.

-I think you've got it all really wrong.

I think I would stop. I'm out.

Thank you.

We're going to prove them wrong.

SHE CHUCKLES

Forget old-fashioned portrait photography,

it's the selfie which rules these days, and our final entrepreneurs

believe the enormous use of smartphone cameras offers

a lucrative commercial opportunity but will the Dragons snap up

a share of their web-based photo-framing business?

Enjoy it, mate.

THEY CHUCKLE

-This is amazing.

-Oh, I can't... I can't believe it.

Hi, my name's Jake Hayman and this is my business partner Joe,

and we're here to pitch for a £60,000 investment

in exchange for 20% of equity in our business Frame Again.

I was at a wedding in Iceland

and I was taking my photos on my iPhone in Instagram.

When I got home, I wanted to get the happy couple a framed

photo as a gift and I realised pretty quickly that there

were no cool frames out there which were targeted at people like me

so I decided to design one myself.

Frame Again is all about the product but it's also all about getting

your photo printed, framed and delivered the very next day.

Our website is really simple.

You go online, you see the frames that you're going to buy.

You then get framing.

If I order these right now, they're going to be on my doorstep tomorrow.

We did some polling when we wanted to start this business

and what we found was that 30% of 18-35-year-olds said that they'd buy

at least one of our frames a year if it were on the market with the

service we described and that goes up to 50% amongst Instagram users.

We welcome your questions.

-Could we look at one of your frames?

-Yes.

-While we ask you questions?

-Could I have Duncan's one, please?

Could I have Peter's?

A focused pitch from young entrepreneurs Jake Hayman

and Joe Kenyon, who are seeking £60,000 in return for a 20% share

in their online photo-framing business.

But there's something about their product

which is troubling Kelly Hoppen.

It's actually not a bad idea. I just can't bear the design.

I can see what you're trying to do

in creating the slightly retro frame, but it's so cumbersome.

We're looking to iterate the design,

we're looking to broaden the number of designs we have.

How many frames do you intend to have?

Clearly, you've got one design which won't work for everybody.

There's no reason that we can't go on to frames that fit a 6 x 4

or a 7 x 5 photo, or do different designs,

but I think, just with this frame, we've got a good way to get started.

What does it cost you to actually make this?

It costs us about £8 a frame at the moment, but we think with, er...

As we scale up, we'll be able

to bring the cost of the frame itself down to less than £4 a frame.

So I decide I want to go buy a frame and choose my pictures

but how much is it going to cost delivered?

-It's £21.99 total.

-Right, OK.

I think in our vision we can build a business around that product.

Are we satisfied and resting on our laurels? Absolutely not.

It's a confident comeback.

But Deborah Meaden is unconvinced that there's enough demand

for photo framing amongst the smartphone generation to make it

a lucrative business proposition.

My experience is that most people just keep them

on their phones or they put them on their screensavers.

You know, there's an electronic way or a digital way

of viewing their photos that actually they're very happy with.

I'd like to say personally that the inspiration for the business

came from wanting to print and frame.

More people than ever are taking more photos than have ever been

taken in the history of the world combined now on smartphones,

and people do actually want to do something with them,

it's just they need the triggers to be able to do that.

They do believe that the majority of people's photo experience is now

online, but they'd really cherish it

when they do make that commitment to buy.

For now at least, Jake and Joe are making light work

of some heavy questioning from the Dragons.

But something in their pitch appears to have riled Duncan Bannatyne.

You said in your pitch there were no cool frames out there.

I find that a little bit insulting, cos I've got about 100 frames

in my house that are all pretty cool.

-And coolness is a matter of taste, which is subjective.

-Exactly.

-Very well answered.

-He's a braver man than me!

I have to tell you, I don't think these are cool at all.

I really don't. I think they're quite ugly, actually.

-So, for that reason, I'm out.

-OK, thanks, Duncan.

Jake and Joe have lost their first Dragon.

Will Kelly Hoppen be any more willing to make them an offer?

Guys, I think you're great. You really are, and, erm...

-I think your idea is great. You know what I feel about the design.

-Yes.

It's such an easy thing what you've created, but it's £21.

That's quite a high number.

I really don't think that, for that money,

I would want to spend on something as plastic and bulky.

I'm not going to invest in you. So I'm out.

A blow for Jake and Joe as designer Kelly Hoppen declines

the opportunity to invest.

And Piers Linney has concerns.

The thing that jumps out at me is there's some very big companies,

you know, PhotoBox and various people like that,

and they can easily add this service.

There's obviously nothing stopping PhotoBox

bringing out a frame like this,

but PhotoBox and its high street equivalent are the companies that

allow you to print your photos into snow globes and onto jigsaws

and onto mouse mats.

I think, if you look at the people we're targeting,

they don't use mouse mats, they use touchscreens.

I'm waiting to see what a certain entrepreneur in the photo business

is going to say. He's been very quiet.

What do you think of Jessops?

We like Jessops.

"We love Jessops" would be better.

It's respectful competition for now, but the aspiration for us

is to grow this business

and see a clear exit to one of those more traditional bigger businesses.

What sort of revenue do you think you're going to be able to

achieve in the next year?

Well, it depends if you invest or not.

We think, over the next year, we're going to be selling

about 10,000 frames, and so that's about 160 grand we'll bring in.

It's not exciting to say that your business is going to

generate 160,000 in income.

It might be exciting for an investor outside of it,

but for me sitting here owning Jessops...

We'll launch framing

and we'll deliver that sort of income in a week.

Within three years, we'll be looking at selling 50,000 frames,

so 800 grand and 600 of that gross profit.

If we can create a brand that means we're the go-to people for printing,

framing and delivery for the smartphone photographer,

then we think there's a huge market.

The pair have gone head-to-head with photography giant Peter Jones

and survived.

But will their composed performance be enough to sway Deborah Meaden?

My big issue is every element of this business will be under attack

from businesses that are better placed to enter that market

and dominate that market than you.

You haven't got anything that is, other than the two of you,

that is a barrier to entry.

So I'm afraid I won't be investing,

and genuinely I'm kind of disappointed in that.

But I'm out.

Tricky with you guys, cos I really like you guys,

I really like the product.

I'm not entirely convinced, with the kind of money we're talking about,

you're going to be able to produce enough traffic

to convert into picture-frame buyers to generate an investment

that's worth getting involved in.

I wish you'd come in with a different business,

but, as far as this one goes, I'm out.

Four Dragons have now walked away from the deal.

Only Peter Jones remains.

What did you say they cost you to make?

At the moment, it's costing us eight quid,

but we can bring it down to less than four quid a unit.

There's a few things.

One you mentioned about the size of the market. I agree with you.

The opportunity is big.

I'm sitting here thinking, actually,

you've done a better version of how we are looking to create

our online piece in terms of the options,

because you've kept it simple.

I'm going to make you an offer.

Do you want a job?

Er, is that plural?

At, at...

Would you both like the £60,000

in the shape of 100% of your business,

but you get a job working to build the framing

and photographic marketplace within the UK's leading imaging company?

Er, we hadn't prepared for that one.

I think... I think we'd have to think carefully...

-We'd have to have a talk about that.

-Can we take a moment?

-100%, yeah.

-Thank you.

-Thank you very much for your offer as well.

It's an astonishing development.

Less, "I'm in," and more, "You're hired."

Do you want to take this? This could be fun.

Do you want a job?

-I don't know, do you?

-I don't know. We could take it.

I say we do it, man.

I don't know. We're talking about a job here.

For 100 grand a year...

Let's roll the dice. You ready?

Thanks for your patience, guys. Sorry.

Erm, if it's OK with you, we're going to turn down the offer

and in a couple of years' time we're going to be

knocking on your door hoping you buy our business for a much larger sum.

Good luck to you.

-Thank you, everyone.

-Good luck, guys.

-Thanks.

So, Jake and Joe depart without the £60,000 investment

they were seeking.

But despite leaving empty handed, Peter Jones' job offer has

turned their visit to the den into an occasion to remember.

What just happened?!

-My head's pretty light.

-Yeah, I'm not entirely sure what just happened.

I couldn't tell you what happened.

And I'm...

We said no, right?

-I can tell you we made the right decision.

-Yeah.

So a day packed with surprises draws to a close with a potentially

life-changing dilemma for Jake and Joe.

They left the den confident that, in rejecting Peter Jones' job offer,

they'd made the right decision.

Do you agree?

Well, the conversation about all of tonight's pitches

continues on Twitter using the hashtag #dragonsden.

Next time in the Den...

Deborah, it's got nothing to do with you. You're out.

-Yeah, but this isn't fair.

-You're out.

Try it for me. Tell me what dog food tastes like.

I think you passed Peter's little test there. Well done.

I think it is ridiculous.

This comedy took a very dark turn

when you said you'd invested £1 million.

Are you going to take away the offer I made or not?