Episode 3 Dragons' Den

-DUNCAN:

-'It doesn't matter what the business is,

'it's my return that matters.'

-KELLY:

-I would want 40%.

-PIERS:

-Would you invest in it?

-DEBORAH:

-I'm irritated.

-PETER:

-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 once again,

the doors are open to brave entrepreneurs, poised to pitch

their ideas and inventions to our five multi-millionaire investors.

Coming up on tonight's show...

-How many people in the UK home brew?

-I don't know that...

How big is the home brew market in the UK?

I don't know that, but...

How can you possibly be slightly credible?

How much money have you spent on getting it to this point now?

-About £90,000.

-Why?

Looks like you're hiding your wife in a suit carrier.

Or part of her.

It does look a bit random!

OK. £40,000, 35% - that's my offer.

The UK property market is firing on all cylinders,

and our first entrepreneur thinks he's found a new way

to make money out of it.

-KELLY:

-Oh, my God!

-DUNCAN:

-Oh, oh!

Sorry, just technical problems with the lift.

Will the estate agent's pitch come unstuck as he tries to broker

a deal with a Dragon?

Hi, I'm Tom Harrington and I'm here today with my business wesold.co.uk,

a nationwide, online estate agents with a unique difference.

We're the UK's first pay-per-view estate agent.

I'm asking for £75,000 for a 20% stake in my business.

Wesold was launched in January 2013 as an online estate agent with

a unique payment option,

where the home seller only pays a small charge for each viewing

we secure for the property.

Not only does this cut down their estate agency

fees by an average of 90%,

but it also reduces the risk

and spreads the cost in comparison to other online agents.

With your investment and our unique business opportunity,

we can aim to be the fastest-growing online estate agents within

the next 12 months.

Thank you for your time. I will now take your questions.

After a less-than-ideal entrance, a smooth recovery

and pitch from this confident entrepreneur.

On offer is a fifth of his pay-as-you-show estate agency,

in return for £75,000.

Deborah Meaden wants to know what makes Tom's business different.

So the good news is that I get the way we buy

and sell houses needs to change and is going to change.

-Yeah.

-I get that you pay-per-view, cos that's what it says.

Is there a commission on a sale of a property?

No. There's no commission on the completion of the property.

The only time the seller will pay us is for a small initial marketing

fee of £99, and then for each viewing we secure for their property,

there's a £35 charge.

There's a minimum of three viewings and a maximum of 12 viewings charge.

Any viewings arranged after the twelfth viewing are free of charge.

And if your property sells in three viewings or under,

you're going to be selling your property for £205.

Can you just tell me where this is?

-This is a fully-developed website.

-Yes.

Yeah? Is it fully tested and it's operating?

Yes. We launched in January 2013 and we've been operating since then.

Since then, we've take on 195 new customers.

OK, so what's your revenue been?

In the last 12 months, we've turned over £80,000,

with a net profit of about £5,000.

So what happens when Zoopla or Rightmove just decides to do

this themselves?

I don't think Rightmove and Zoopla would do that.

They rely heavily on the high street estate agent that are paying

Rightmove a very high fee to keep their properties on the site.

That's Rightmove's business model.

I think if Rightmove were to change and suddenly start charging

the consumer a fee for selling their property on Rightmove,

it goes into a totally different strategy - they're going to

alienate the customers that they already have,

which are the high street estate agents.

I think realistically, as the industry continues to change

and people realise there's an alternative to using

a high street agent, more and more people are starting to use

an online estate agent.

I completely agree the world will go in this direction.

One of the things about online estate agents is there comes

a point where you have to interact with the seller,

so where are your viewings?

In terms of the viewings, we do not accompany viewings, it would be the

homeowner themselves that show any potential buyer around the property.

And that's how we keep out overheads a fraction

of what a high street agent's are,

the saving is passed onto the home seller.

-How many houses have you actually sold?

-Just over...70.

What is the actual website? Is it wesold.com?

-wesell.co.uk.

-.co.uk?

I like it, I think it sounds good.

So far, so good - Tom's holding his own.

But Peter Jones has some concerns about the company's success rate.

You've had 70 sales, 195 customers...

I don't understand why you think you could have a business,

where you're going to have so many disappointed people.

I don't know many businesses that succeed with having one

out of every three customers happy,

and yet, two out of every three not.

I cannot think of one...

Our growth has grown very much over the last few months,

and although we've only sold 70 properties out of the 195,

a lot we've only just instructed in the last couple of months.

-Well...

-So it's inaccurate to give...

Well, give me the last three months.

How many customers have you acquired in the last three months?

-It's been about 20 per month, so...

-So 60 customers?

And in the last three months, how many houses have you sold?

It would work out... I don't have that exact figure to hand.

-Come on.

-It's close to 50%.

-Right.

How many businesses do you know that could survive with a customer

satisfaction survey of 50%?

The high street does not aim on selling every property...

Just answer the question.

How many businesses? Just think about it.

-The high street estate agency model.

-That's nonsense!

They don't sell every property they take on.

They sell about...

I'm dissatisfied with perhaps they're not selling it,

but I'm even then furious if they'd charged me.

You're charging customers for a service

and your hit rate is one in two... At best, at the moment.

-DUNCAN:

-Are you in a bad mood this morning, Peter Jones?

-PETER:

-And you've got to pay 500 quid.

-That's not an accurate figure.

Well, it's based on your stats for the last 12 months.

Yes, and like I say, we've taken on a number of properties...

But until you get to a larger, like an 80 or 90% model...

..you can't get away from the fact that you're going to have

people that are upset with you.

In the same way with any high street estate agent.

I'm not upset to the point I'm losing-money upset,

I'm upset cos you haven't sold my house.

You've taken it to a new level.

-It's not that bad!

-The biggest online estate agent charges

a commission on completion...of 1.5%.

That's completion on success.

If I'm selling my car,

all that you're incentivising are tyre-kickers.

Tension in the Den as Peter Jones lambasts Tom's business model.

On which side of the fence does Kelly Hoppen sit?

I think that the market is ready for something different,

I just think your model is not correct

and missing a whole proportion of your business, if you like,

which is the bit that I think needs most work.

I think it's quite easy to get people to walk through the door

and look at property - people love doing that.

It's the bit at the end - trying to get the best price,

trying to close the deal of which you're not taking any part of that.

Then your client has paid you for 12 viewings,

they've got no protection cos you're not interested in the back end.

-What happens then?

-So...you are protected.

It's in our interest to sell properties.

What we see in going forward is that most of our new customers will

come from recommendations or referrals.

If a sale does fall through,

we get it back on the market,

they don't pay any additional viewing charges.

So if they've already reached their 12-viewing maximum charge,

they're not going to pay anything else for any additional viewings.

The other problem is that you're up against people with big, big money,

and I don't think that you've thought this out correctly.

I might be a brave investor, but I'm not a foolish one,

so I'm not going to invest - I'm out.

Trouble for Tom, as Kelly Hoppen fails to put in an offer.

But four Dragons still remain.

I kind of feel the same way about this as I did when we first started,

cos what I'm most interested in is, who is going to get me

the highest price for my house?

So I've got to be convinced that this is the best

and actually all of the other stuff you're talking about is peripheral.

It's that number, cos as a seller,

I'd be a little bit concerned that all you have to do is pass

a load of people through the property

and you make your money, whether you sell it or not.

The issue is, am I going to get the highest price?

And I don't think that you can convince me that you would do

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

Tom...

The thing you have done well is,

sometimes you have to go before the industry is ready for you.

And the issue is often that the industry's often not ready -

we have to start building the brand and the infrastructure

so that when it is ready, you exist.

However, to do that can cost a lot of money,

cos you have to fund the gap, basically.

And the issue you're going to have is that you may not be able

to fund that gap - I'm not sure this kind of money's enough.

But when that day comes, the people who have the database,

the people that already have these websites that we've spoken about,

they can just turn this on overnight.

Good luck with it, but I'm out.

Thank you for your time.

I actually think that this is not the future,

and I think that you are destined for failure.

You've got to completely rethink this model, I don't think it works.

I think the concept is wrong and you haven't got the scale to adopt it,

and you haven't got enough capital.

Because it's all about results when you want to sell a house.

And people are more internet-savvy,

and they're going to become more so over the coming years.

And as that happens, we're going to go direct.

So I think you need to rethink the whole thing.

I'm not going to invest, Tom, and I'm out.

Tom is four Dragons down,

but his great defender is still in the chain.

Will Duncan Bannatyne's earlier enthusiasm

result in an exchange of contracts with the online estate agent?

I think you've been given a very bad time.

I think they've really had a go at you.

I don't think it's that bad. I think what you've done is quite unique.

You're the first one doing it, as far as I can see.

Sometimes, you look at the people that come in front of you,

and I think you are very investable.

I think you've come across very well and I think you do know your sector.

The trouble is, as others have said,

I do agree that there's too many people

coming into the market at the moment,

it's going to be a cut-throat business

and that's where the problem is.

So although I think you could do well,

I can't invest cos it's just such a big market.

So I'm going to say, the best of luck, but I'm out.

Thank you for your time and your comments.

Wesold certainly provoked some strong reactions from the Dragons,

but it failed to get over the investment threshold,

and Tom leaves behind a Den where opinions are still divided.

How are you going to get entrepreneurs to come in front of us

if you talk to them like that? You just went on and on...

-PETER:

-That is the most ridiculous, stupid, badly-pitched business.

He's not unique if he's got a flawed business concept.

With UK coffee sales last year double that of tea sales,

it might seem an odd time to try and buck the trend and make us

fall in love with our cuppa again.

But that is exactly what our next entrepreneurs Philip Perera

and Omar Farag have in mind with their new brand of loose tea.

Just let that brew.

I do like a good cup of tea!

Hello, my name is Philip.

And I'm Omar.

We're here today seeking £50,000 of investment for a 15% equity

stake in our business - The Teabox Company.

Around six months ago,

we started a mission to get the world drinking loose leaf tea,

one cup at a time.

Since starting our mission, we've sold over 1,500 units and now supply

over 25 restaurants, bars and cafes across the North West of England.

I grew up in Germany, where my mum used to run a tea shop.

That's where I found my love for tea.

When I came over to the UK, I struggled to find a good

tea at a reasonable price.

OMAR: We also operate a fully-comprehensive

loose-leaf tea-blending service called Make Your Own Blend.

Here, customers log on, choose a tea base that they love

and blend it with over 60 different flavours,

resulting in a possible two million varieties of tea.

The restaurants, bars and cafes that we supply also use this

service to create their own unique house blends.

Our customers can buy our products from our website

and a number of retailers in the North West.

We're a small company with a big heart.

Thank you for your time and we'll bring you a cup of tea

-if you'd like to try one.

-Yeah, definitely.

A refreshing pitch from a pair wanting to change the way

we enjoy our national drink.

-Thank you.

-They're in search of

£50,000 for 15% of their new business.

But will this lifestyle product

be to the taste of style guru Kelly Hoppen?

-Hi, Philip and Omar, I'm Kelly.

-BOTH: Hi, Kelly.

You've really brightened up my day cos I really love loose tea,

I prefer it to tea bags.

I think the world we live in, people just grab a tea bag and it's easy,

but actually, we're losing out.

What is so brilliant about tea, is the whole ceremony, isn't it?

You brew it and you pour it from a teapot.

And what I love about what you've just pitched is

the idea of having a unique service,

where you can mix flavours.

I think you've got something here.

I'm a designer and I'm looking at this product and thinking of several

different ways that you could better the tube, make smaller boxes.

You think of independent stores where they could do a great

display, it's very different - this would look fantastic.

And you only have to look at someone like Mariage Freres in Paris,

I don't know if you know them, one of the greatest tea houses,

they started very small and they have done remarkably well.

I'd like to make you an offer...

..but I think it would take quite a bit of my time,

because one would need to go to market quickly.

I would want 25% of the business,

for the full amount of the money,

but once I'd got some of my investment back

and I could see it was making traction, I would drop it to 20%.

OMAR: Thank you very much.

A radical and extraordinary move from Kelly Hoppen,

as she stakes her claim on the business

with an unusually early offer.

Will Deborah Meaden be as bold?

Can you just give me an idea of your vision for this?

Are you looking at retail? Are you looking at...?

What are the different streams to the business?

We get asked that quite a lot, to be honest.

What initially started as a way of us marketing our product -

restaurants, cafes and bars - grew organically

and we get about 300% gross profit on restaurant orders.

The retail part is what we really want to get into.

We want it to be as successful as possible.

-PETER:

-How old are you?

-BOTH: 23.

-23?

-Both.

How much money have you invested in this?

-£20,000.

-Between you?

Yeah, we received a grant from the Young Enterprise programme.

And how much was that?

About £12,000.

So you've put in 8,000 between you?

Yeah, 5,000 each, so it's 22,000.

-And you haven't got any other loans or anything?

-No.

It's neat. I think it's quite nice.

It tastes really good, actually.

PHILIP: We're glad to hear.

HE SMACKS HIS LIPS

Did you start with a nice box?

-No.

-You didn't call it "The Teatube Company"

you called it The Teabox Company.

The packaging, I don't like it.

The effort and love you've put into the product is not

reflected in this thing you've stuck it in unfortunately.

I've got to say, I can't get that excited about it,

if I'm really honest with you.

I'm out.

Piers Linney's sharp exit gives

Kelly Hoppen one less Dragon competitor to worry about.

And now, Duncan Bannatyne is ready to have his say.

I think you've had a really good offer, that's the problem I have.

And I think there is a lot of work to do.

I quite like it, but I'm not going to try and compete with Kelly on

those numbers, so I'm going to pull out, so I'm out.

-BOTH: Thank you.

-Good luck.

OMAR: Thank you very much.

-PETER:

-Is Deborah still in?

In terms of what you need to sustain yourselves ongoing,

will you need to take any money out of the business

if you took investment?

If it was generating money to take out.

But if it wasn't, how would you live?

We could...

We could live.

Whereabouts are you based?

-Liverpool.

-If you got investment, would you relocate down to London?

OMAR: Possibly.

PHILIP: If it's good for the business.

So what you're saying is,

you'd do whatever's right at the right time for the business?

-Yes.

-And you'd consider it?

Guys, I'm going to make you an offer.

And it's based around what you've done to date,

and also what you've just said now.

Because I actually don't mind you staying in Liverpool -

Liverpool's beautiful, so I'm very happy with that.

It's more that you've demonstrated sheer commitment.

If you're willing to uproot yourselves and go wherever the

business is, it shows that you're determined to make this a success.

I'm going to make you an offer for all of the money...

..for 26% of the company.

OK. Thank you.

Thank you.

Erm...

This, I think, needs more work than you probably think it does.

But what's been holding me in is you guys - you're obviously good

and you get it.

I'm going to offer you all of the money,

and I want 25% of the business.

A setback for Kelly Hoppen

and her early bid to invest in the business,

as two other Dragons come in with equally competitive offers.

Three bids have now been tendered,

posing a tri-lemma for the entrepreneurs.

PHILIP: Is it OK if we...?

-DEBORAH:

-Go and talk to each other.

PHILIP: This was not...easy.

OMAR: (What do you want?)

PHILIP: (I say the one on the retail and you...)

THEY WHISPER

Erm, Kelly, we'd like to accept your offer.

-Oh, brilliant!

-Thank you very much.

A Dragon with bags of enthusiasm and an offer that's hard to beat -

the perfect blend for a successful investment.

And the entrepreneurs can now leave

for a well-earned beverage themselves.

-DUNCAN:

-That was a good investment.

-Yeah, really nice.

Having the Dragons fighting over you...we're just over the moon.

PHILIP: Just can't believe it, really.

-MAN:

-Stand by.

Here we go...

Another budding entrepreneur hoping to prise some cash

from the Dragons was Sally Patty from West Sussex.

She wanted £45,000 for 10% of her product - Doddle For Dogs.

I'd like to introduce you to Bertie, who is modelling the product,

which is a combined lead and collar,

which makes walking the dog absolutely fiddle-free.

But one thing that wasn't fiddle-free was Sally's pitch,

especially when Peter Jones collared her about the practicalities

of the product.

It is quite heavy, isn't it?

I could see dogs walking around angled to their right.

If you put that on a Chihuahua,

it would be like putting a ball and chain on it.

I know, but you wouldn't put it on a Chihuahua.

And also, it would look ridiculous on my Great Dane.

You're talking the extremes of my marketplace.

You'd ostracise all the bitches that look at him and think, "Yeah!"

Kelly Hoppen thought Sally was barking mad

when she uncovered her commitment to the venture.

How much money have you spent on getting it to this point?

-About £90,000.

-And it's three years of your life?

-Yeah.

-Why? Why have you done that?

Bert's presence provided a welcome distraction from wheeling

and dealing for the dog-loving Dragons.

-Would Bert mind if I tried it?

-Of course not!

He's not interested in Deborah -

he's looking for food or something else.

Bert, Come on, poppet.

Bert!

Bert doesn't want to walk with me.

What do you think of it? Is it any good?

In the end, it was Deborah Meaden who had the final word.

However much I like you and however much I love your dog,

I don't love that so much, so I won't be investing.

I'm out.

Oh, Bert!

Well, we did our best.

And let's hope we can try and prove the Dragons wrong.

So far tonight...

Just technical problems with the lift!

..one product has been given

the all-important Dragon seal of approval.

I'd like to make you an offer.

Will any of these cash-hungry hopefuls also have the

-winning formula for investment?

-Can we get back to cider?

No, cos that business sounds a lot more exciting than this.

But that's not what they've pitched.

Doesn't matter, they're in the Den - they're mine.

Now, peanuts of the world, watch out,

our next entrepreneur has plans to pick you,

crush you and turn you into butter.

He's a former economics student, Akeem Ojuko, and he thinks

his flavoured peanut butters could soon be flying off the shelves.

Hello, Dragons.

My name is Akeem Ojuko and I'm here pitching for £50,000

investment for a 20% return in my business The Wild Peanut.

So what is The Wild Peanut?

Well, in a nutshell - excuse the pun -

it is flavoured natural peanut butter with no preservatives or additives.

All five flavours were recently exhibited at a national

exhibition at the NEC, and had fantastic response.

We launched just two months ago, we've had fantastic attention,

we sold just under 6,000 jars across three different sizes -

45 grams, 320 grams and a one kilo pails own label.

We're in talks with two major retailers,

one of which has put a proposal forward to make our peanut butter

for over 100,000 units.

Essentially, the peanut butter market is huge,

growing 20% over the last two years in the UK alone.

And I really feel The Wild Peanut will be the disruption in the market.

Dragons, I really welcome any questions you may have

and I would love you to try some peanut butter. Thank you.

-Do you want us to come up there?

-No, I'll bring some.

I've only got two hands unfortunately.

A pitch to get the taste buds tingling from Akeem Ojuko

from South East London.

He's hoping for £50,000 in return for a 20% stake in his business

selling flavoured peanut butter.

Deborah Meaden is first to question the culinary entrepreneur.

Why is the consistency the way it is?

Cos it's not what I would call peanut butter, it's almost a sauce.

It's very different to the other suppliers et cetera,

or the other peanut butter makers.

Mainly, firstly cos it's got different ingredients mixed,

but there is no difference the way it is grinded and produced.

But look...

Yeah. Because we use no stabilisers, the oil rises to the top,

so it is sometimes more liquidy.

So if you give it a quick stir, it's a lot more spreadable.

Sorry? What's a lot more...? Are you saying...?

Because the peanuts have peanut oil,

and without stabilisers...

What were you saying about mixing?

Cos I've just emptied the whole thing -

-it's just ran out of the jar.

-Oh.

Was that intentional or is that a by-product of how it's manufactured?

It's a by-product because there's no stabilisers.

I could have found quicker or cheaper ways to make the product -

I could have made a two month extra extension on the life of the

product by adding stabilisers, but I wanted to do things the right way.

I actually like the fact that it's slightly runnier cos I often eat

almond butter and the same thing happens and you have to mix it,

which is lovely. I love peanut butter.

It's incredibly fattening, but I do love it.

How did this come about?

Essentially, although it's cliched, I loved peanut butter.

I also saw a massive gap in the market between the fact that

a lot of people do mix things with their peanut butter,

but there's no spread to mix them together - at least in Europe.

Even the ones that exist worldwide, have a lot of additives

and preservatives in comparison to what a lot of people would like.

What's your vision for it?

-Let's face it, you're up against some big names.

-Yes.

So I wanted to ensure I had a very strong brand,

that it's not just a company you buy peanut butter from, you eat it

and you throw away the jar.

So I really wanted to ensure it

had as much attachment to customer experience as possible.

And that's why I thought of the brand and how the brand's going to

be perceived way before I got to the product stage.

It tastes quite nice actually, and the branding's nice as well.

Thank you.

A good start from Akeem, who's turned

criticism of his product into major praise from some of the Dragons.

Kelly Hoppen wants to know

if any potential suppliers are as wild about Akeem's peanuts.

Where are you going?

Have you gone out to all the big retailers and spoken to them?

What's the feedback?

Erm, I have gone...

Two of the retailers that we're in talks with,

we have actually spoken to a range of other retailers.

Just give me... How many?

-Four of the major retailers.

-And what have they said?

They all think the product's fantastic.

Off that exhibition that we just had,

there was a buyer that actually came to that event and said it

was their favourite stand.

-Did they place an order?

-They put the proposal forward.

-So this is a proposal?

-Yeah, I can show you the letter.

-OK.

Sure.

This worries me, because Ocado have come to you

and they've basically come to you as a manufacturer,

and what you were doing was selling your brand and your tastes,

and out of the four that they have asked for,

for you to make for them with their own brand on,

-only one of them is one of these tastes.

-Yep.

And that, to me is insane,

because they could go anywhere to get peanut butter made,

-so how did that come about?

-Great question.

So, essentially, he firstly wanted us to produce their own label

peanut butter, based on the taste that we make and the texture...

he really, really likes.

Why do they need you, you don't actually make it?

You're like the archetypal middleman.

They have the choice to go to any company,

but they would specifically like to work with us.

Akeem, I'd hate to be cynical about supermarkets

but I think they tend to go with whoever can do it the cheapest.

Yeah, of course. That's one of the benefits.

So I'm sure a manufacturer could do it cheaper.

Um...

Yeah...

You could say that, yeah.

A setback for the entrepreneur, as the Dragons dish out some

brutal truths about that

less-than-promising supermarket deal.

Will Peter Jones be any more encouraging?

You said you had a business before - tell me about that.

First business, I was an online reseller.

I then ran an events management company at university.

-And what degree did you get?

-None.

I left university to follow my passion and start that business.

So I was in my second year of economics, finance and banking,

but I always knew from a young age that I wanted to be an entrepreneur.

So you've done two years at university -

give me a snapshot of your balance sheet.

Um...

OK.

Assets and liabilities...

Would form part of it.

So my current assets is...

eh...

..my exhibition stands and, eh,

my products that I have currently.

That is just over 4,500, so £4,600,

but my liabilities is...

Well, I'd see some of my stock that I have is overstock.

So your current snapshot is - stands at £4,600

and you've got an overstock of stock.

Have you ever seen a balance sheet that says...?

No. No, I got that wrong, I do apologise.

Do you want to start again, or do you...?

Are you going to struggle to give me a snapshot?

A snapshot I would struggle, yes.

Yeah, I'll struggle to give a snapshot...

-an accurate one. Yes.

-I'm just trying to get

an understanding of where the business is at.

-What have you turned over so far?

-Up to now, £2,300.

-And how much have you invested in the business so far?

-£26,000.

How much is your stock worth at the moment?

The stock I have at the moment, I've only got £900 worth of stock.

-I haven't got a lot.

-And how much do people owe you at the moment?

Um...I'm owed just under £300 - so not much.

And how much have you got in the bank?

Uh...£1,500.

I do however have to make a payment for that money to come out,

it just hasn't yet.

So as you stand in front of me today,

you've got nothing in the bank?

Practically, I have nothing in the bank, no.

Your passion is fantastic,

but you're in a bit of a hole, aren't you, in truth?

Um...

For 26,000, if you look at it,

in basically eight months you've lost 80% of your investment.

Um...

Yeah, you could say that.

A painful admission for Akeem as Peter Jones uncovers

the business' bleak financial situation.

Kelly Hoppen has heard enough.

I think it's a clever product

and I'd like to help you make your dream come true,

but I don't think this is a business that is going to

take off quickly and it worries me

that financially you don't know whether you're coming or going.

And as an entrepreneur, you've come up with an idea,

but your business skills in terms of finance are rocky.

For that reason, I'm not going to invest with you today, and I'm out.

Kelly Hoppen is the first Dragon to walk away from a deal.

Has Akeem done anything to convince Deborah Meaden to invest?

I don't understand why an online retailer,

or any of the big retailers would need...

You're not even the manufacturer of it.

You know... What do you own?

You own the idea of putting flavours in peanut butters.

-Yeah, I mean, yeah...

-You can't own that!

I completely agree with you.

I'm not convinced about the white labelling aspect of it,

so I'm afraid I won't be investing, Akeem.

-OK.

-I'm out.

I think it's great that you're being an entrepreneur

and I think it'd great if you get somewhere,

but this is not an investment worth £50,000 of my money.

So I wish you the best of luck,

but I've got to say, I'm sorry but I'm out.

OK.

I'll tell you where I am. So...

Come back with the next one.

I like you, I think - I've not quite worked you out yet.

You do talk quite a lot, quite quickly and it sounds good,

but you get caught out.

I don't think this product is the one that will get you where you want

to be, but I do think you'll find

something that makes you a lot of money.

It's a pity you haven't brought it in here today.

So, it's more the product than you, to be quite frank,

but because of that, I'm out.

OK.

Piers Linney's exit from proceedings leaves only one investor

still at the table.

And Peter Jones is displaying some rather un-Dragon-like sympathies.

I'm more concerned about you.

You feel the pressure a lot at the moment, don't you?

-Yeah?

-Yeah. You could say that.

-Um...

-You're trying a bit too hard.

That's how it comes across to me,

because you're desperate for success.

And I hate to say it, but I don't believe that this is it,

and I think you're going to struggle.

You're in debt, you're not on the starting block, you don't

have a business at the moment.

And it's easily, easily, replicated.

So for that reason, I'm not going to invest, and say I'm out,

but just take a long hard look in that mirror and good luck to you,

cos I think we're going to read about you, Akeem,

and I hope that you are going to be as successful as you intend to be.

Sure. OK. Thank you, Dragons.

-KELLY:

-Good luck.

-DUNCAN:

-Thanks, Akeem.

The Dragons certainly admired Akeem's enthusiasm,

but they all thought that on this occasion,

his business was a less-than-appetising proposal.

He needs a bit of mentoring and help.

Absolutely.

They thought that it's not going to be a great success,

that it'll make a little bit of money et cetera,

but the goal is for myself to ensure that the business is a success,

so look out for The Wild Peanut over the next three to six months,

hopefully I'll see them again where they feel they made a mistake.

Another entrepreneur who came seeking money

and mentoring was mum-of-two Kate Arnold.

She wanted £45,000 for 10% of her business aimed at solving

a messy problem for the hair extension aficionado.

Clip-in extensions are great,

but there are a few problems that any wearer can relate to.

If you don't store them correctly,

you end up with tangled, matted extensions...

like this.

Hair Hangerz is a totally unique, first-of-its-kind product that

not just stores the hair neat and tangle-free,

but also acts as a styling aid.

Stick it on at any height that suits the user

and you've got both hands free to work with the hair.

For Piers Linney, it was less a head-turning investment

opportunity, more Hammer House Of Horror!

It's like some scene out of a film.

-It does look a bit random!

-Just looks wrong.

Looks like you're hiding your wife in a suit carrier.

Or part of her.

Jokes aside, Peter Jones couldn't quite grasp what the problem was.

Nor for that matter

whether Kate's elaborate solution was really necessary.

Can I just put this in perspective for one second?

We are talking about something to hang your hair on, aren't we?

-Yes.

-Have I missed something here?

-It is a bit random.

-It's a suit bag and a hanger.

-It solves a problem.

But when I come home and take whatever hair I have off,

could I not just put it on my normal hanger?

They don't work. It would hang, but then it does this.

So because the sucker's on the back, it stays perfectly firm,

perfectly in place and you can work with the hair.

The funny thing is,

my hair looks like the bit you said looks awful all the time...

and it's real!

Months spent perfecting her quickstep on TV,

made Deborah Meaden appreciate the need for big hair.

When I was doing Strictly, I had so many hair extensions

and I now fully appreciate why people go for hair extensions.

The bad news is, I haven't seen any of them

stand there with the hair thinking, "Now what do I do?"

I think you've got a product that will sell,

I just don't think it's going to be big enough

and you can't really tell me any different.

Having got the roots of Kate's invention,

the Den concluded that less was definitely more.

-PETER:

-I think you have

over-engineered something that actually doesn't need to be done.

I would have designed something that clipped onto an existing hanger,

be it a wooden hanger,

or created something that was a lot cheaper in a much smaller box.

Potentially, you could even sell to the people who sell

hair extensions or, at worst, it's a small add-on product.

I just think that you've gone a little bit too far

-and got a little bit too carried away.

-OK.

I'm out.

Thank you.

SHE SIGHS

Believe it or not, more apples grown in Britain are used to make

cider than are used for eating.

Our final entrepreneurs want to use a few more

apples for their new cider drink.

They came up with the idea on a boozy night out at university

and unusually, they still liked the idea the next morning.

Now, they hope the Dragons will like it too.

Hello, Dragons.

I'm Ralph Broadbent and this is my business partner Alex Dixon

and we're here with Victor's Drinks

looking for £40,000 for 15% of our business.

I first met Alex at university

and one day we decided to try some home-brewing.

When it was finally ready, we took it to a house party,

and at that party it became the centrepiece -

everyone wanted to try it, everyone wanted to know about it,

but most importantly, everyone really liked it.

So we sat down and chatted

and realised there were barriers stopping people doing this.

We looked at it and it was clear that it was too much hassle,

there was to much expertise required and this was this image that is

was all about your dad doing it your back garden.

So we thought, wouldn't it be great it we created something that

enabled people to make their own drink, so it was rewarding

and simple enough to do it and has still got a really great taste?

So after three years' development, we came up with this product here.

All you need to do, is remove the cap...

..add the sachet of yeast...

and fill with 18 pints of warm water.

After ten days, you can tap straight from the front of the box.

In terms of our target market, we're looking at men between 18 and 30,

although our product is much more gender-neutral than other

competitors in the marketplace.

We launched our product in October and in the first three months,

we managed to sell 2,500 units,

generating us a turnover of just over £30,000.

We did this by being listed on firebox.com, which is

the UK's largest gifting gadget website.

We were also stocked in Hawkins Bazaar, who have over 40 shops

and finally, we went

and sold directly to the customers at some Christmas markets.

I'd like to invite you to try some drinks,

ahead of taking any questions.

Would anyone care for one of the UK's most exciting ciders?

Yeah, definitely.

A spirited pitch from Londoners Ralph Broadbent and Alex Dickson.

-DEBORAH:

-Can I have some with no ice in, please?

I'm a Somerset girl - only drink warm cider.

They're looking for £40,000 for 15%

of their brew-it-yourself cider business.

But Piers Linney is in no mood for a party.

I'm going to get straight to the point on this one.

When I was at university, at house parties,

waiting ten days to get to the cider was a bit of an ask.

It looks a bit like a school project, in a way.

What we're trying to do is focus on the people

who are interested in having a go at making their own drink.

So people who are planning a party that might be ten days' away -

you're right, you can't use this if you're going to a party that evening.

I get that, but...

So you've got people that make cider and beer and wine,

and are quite serious enthusiasts.

And then you've got people that just want to buy some cider.

And you seem to be sitting in the middle somewhere,

which I'm not sure is a market.

This initial party that we went to, loads of people wanted to do it.

People were excited to hear about it,

they wanted to know how he'd done it, where he'd been.

-DUNCAN:

-Ralph, while they were telling you how excited they were,

while they were listening to you,

weren't you pouring them a free drink?

ALEX: We gave them lots of free drinks.

Come and give me free drink all night,

I'll tell you how exciting you are.

What a lovely suit and tie you've got on!

You know, I'm game tonight.

What's the size of your market?

We've got this interesting position where we're

trying to find a new place,

so sitting between the home-brew market and the drinks market.

It's difficult to gauge how big it will be cos it is a new space,

there aren't any products like it out there already.

How many people in the UK home-brew?

-I don't actually know but...

-How many people in the UK?

What's their average spend on home-brew products?

-I don't know that but...

-How big is the home-brew market in the UK?

-I don't know that but...

-How can you possibly be slightly credible?

-The reason we're not focusing on the home-brew market...

-It's irrelevant.

You are because you are taking a home-brew style product,

repackaging it in a very swift way and now trying to enter gifting.

But you don't even know the size of the market in home-brew.

I disagree with Peter.

I think you're absolutely right, it's not home-brew

so going through stats about the home-brew market,

it's a complete and utter waste of time.

You've tried to create a different product which is just which is just a fun way of...

-Make it yourself.

-..turning up with some cider that you've

made yourself but you don't really care what it tastes like,

it's just so you can show your mates.

That's a very small market.

I don't like the product, I don't like the look of it,

I don't like the brand.

I think you guys are clearly entrepreneurial, capable.

I'd go and apply those skills on a different product if I was you.

Not for me, I'm out.

A sobering moment for the entrepreneurs as Piers Linney

wastes no time in saying no to a deal.

And now Deborah Meaden has another concern to throw into the mix.

Where does it sit in terms of price per pint?

So, the big ones, they're £25 to buy so it's £1.25 a pint

when it comes out the tap.

So, what we're actually saying, if you wrap up this product,

I think it's a little bit of fun, you take it along to a party,

it's a lot cheaper than buying it at retail price.

But thereby stands my problem with investing, personally.

I don't want to invest in something that I see would encourage

cheap drinking and you're aiming at the student end of the market.

I don't really want to get involved in something that sends

students out drinking, you know,

sitting in a room drinking one of those boxes entirely on their

own one night which is exactly what could happen, probably will happen.

It really wouldn't matter how big you told me the market was.

I don't want to invest in a cheap way

of putting alcohol out to young people.

That's it, I'm out.

It's not good for the duo as Deborah Meaden follows her principles

and steps aside from any part in the business.

But Peter Jones isn't ready to give up on Ralph and Alex just yet.

What was your job before coming up with this?

So, our background,

we actually have another business running music festivals.

We've got a portfolio of six music festivals around the country...

-OK.

-..which is successful, that's what we've used to fund these.

What does that make?

-In the last three years, it averages about £100,000 a year.

-Profit?

-Profit, yeah.

-Wow.

What was the last festival you did?

The last one that we ran would have been Brownstock in Essex,

that was in September.

It's very seasonal, they all happen in the summer.

-So, this year, it will be six festivals in seven weekends.

-Can we get back to cider?

No, because that business sounds a lot more exciting than this.

-That's not what they've pitched.

-Well, it doesn't matter.

They're in the Den, they're mine.

The news that Ralph and Alex already have a successful business

has brought credibility to an otherwise faltering pitch.

But the revelation has left Duncan Bannatyne feeling puzzled.

I want to know why you're here.

-Why are you here asking for 40,000?

-Because...

I think it's probably quite low compared to what some people

come with in terms of the actual figure.

What we really need is the expertise because it's an industry we've

not operated in before and it's the contacts.

So, you don't really need the money then?

It's not as much about the money, no,

it's much more about the people we bring in.

-PETER:

-You should have done a Dragons' Den first.

You should have pitched for no money and offered 15%.

-Why didn't you ask for no money?

-I think the reason...

One of the big things for us is we want Dragons to come in

and be really committed to it and I think

if there's £40,000 riding on it, it'd probably keep that focus a bit more.

You think £40,000 will keep the focus of somebody

like Duncan Bannatyne?

-No, not...

-He'll spend that next weekend.

Do you know what I think?

I think you've done so brilliantly well on your other business.

I think this is, first of all, I think the branding is awful.

I think it's just atrocious, actually.

And it looks to me

like you guys have done really well in another business

and you've sat down and had your ten pints

and you've come up with this idea

and the branding in one of those blurred moments

and then you've gone around and asked some people

and gone to some fairs and because a whole load of people instantly

tell you it's a brilliant idea, you believe it's a brilliant idea.

This is not something that I want to invest in

and I don't even think there's such a big market for it but...

I wish you luck with it

but I'm afraid I'm not going to invest so I'm out.

Thanks for your time.

Guys, I think if you invested money, it would end up being

almost like a trophy asset cos I can't see you making money in it.

I wish you'd pitched the music business...because

that would be more exciting.

So, I'm going to wish you well on your way

but I'm not going to invest and I'm going to say I'm out.

Could it be last orders for the brew-your-own entrepreneurs?

Duncan Bannatyne is the only Dragon left in the round.

What is your balance sheet looking like at the moment?

So, um, we invested, through the years,

we've invested about £136,000 in the product.

I mean, in terms of the investment moving forward,

we'd happily write that off and call it a clean slate.

Yeah, and the moving forward, in terms of numbers of the box,

it sells to trade at £12.50 and it costs us about £7 to make.

-No debts in the company?

-No debts, no.

-Oh, no.

I just want to ask Peter a question.

Sorry, before he does, could I have some more drink?

-I need some more alcohol.

-Yeah.

If this is going where I think it's going, I'm getting pissed.

THEY CHUCKLE

-Thank you very much.

-Peter...

..I'm seriously thinking of making an offer. Am I being stupid?

KELLY LAUGHS

It's a serious question, I'm asking you a question.

How much of this have you had to drink?

I was asking you a simple question.

If you don't want to answer, it's OK.

Look, it's £40,000, you spend that sort of money in a weekend.

I don't think it makes much difference.

OK.

£40,000, 35% - that's my offer.

I am very... Well, we're both very, very grateful for the offer.

I think that is going to be too high for us.

Make us a counter-offer.

Well, 15% is what we were looking for.

Did you really come here today expecting to get £40,000 for 15%?

And did you really say,

"Listen, Alex, whatever happens, we're not going to go to 16%."

It's just not worth being involved in a company for 15%

and that's the problem. I made you a really good offer.

Um, OK. Um...

Cheers.

Why don't you go and think about it?

-I might have a little chat with Alex, is that all right?

-Yeah.

-I don't want to look like...

-£40,000, 35%.

(Let's edge it down a bit. 25.)

(I say start with 15, work it to 25,)

(and then if we deliver, we go with that 15.)

-Yeah?

-Yeah.

Thanks for your patience.

What we'd propose, I don't know if you'll be interested,

but I don't know how you feel about maybe looking at 25%

but with a ratchet - if we hit our targets, which we can discuss,

in the first three years, if we deliver those profit levels,

then it would go back down to the 15%.

What are your targets?

So, just in terms of profit,

we're going to deliver £30,000 this year, 120 next year and then...

320, year three.

I wish I hadn't gone out now.

We have shown that we can deliver on our targets in our other

business, we've shown that we can grow a business.

-OK. You've got a deal.

-Excellent.

-Thank you, Duncan.

-Thank you.

-Cheers, thank you very much.

-Magic.

So, Ralph and Alex almost walked away empty-handed but,

after a last-minute U-turn, managed to negotiate a savvy investment.

-Nice one.

-Pressure's on.

Go for a beer now?

-Let's get selling some kits.

-Yeah.

Duncan, low-cost drink - I think you got a good deal there.

I think that's a really good business,

that'll make a lot of money.

So, you're saying I made a very good, astute investment?

-You made a very good, astute investment, absolutely.

-Thank you.

It's going to open a lot of doors, I really hope it is.

It's going to give us a lot more clout in the industry

and not only is it great to have a Dragon on board,

but we got some excellent feedback as well.

Most importantly,

someone can make sure that Alex works as hard as me now.

THEY LAUGH

Well, Duncan Bannatyne is always one to stick his neck out

and hold out against the others and he's proved that again on this,

another dramatic day in the Den.

Sometimes going against the crowd can be business genius

but sometimes plain fool-hardy.

Join the conversation about that

and all of tonight's pitches on Twitter using the hashtag...

-Next week on Dragons' Den...

-David, you look just worn out.

I went on a heavy stag do at the weekend.

-THEY LAUGH

-Oh, right, OK.

-Would you wear Fat Girl At The Back?

-That's my point.

-Fat Lass At The Back? Are you serious?

-Fat Kid At The Back?

-No.

I don't think you could do the kids, could you?

-You're basically a sales agent.

-Yes.

For an investor, that is massive, massive risk.

Thing is, I'm crazy about marshmallows

but these taste a bit stale.

I'm going to make you a higher offer.