0:00:02 > 0:00:04Tonight, be prepared...
0:00:07 > 0:00:08..for some fireworks in the Den...
0:00:11 > 0:00:14About 80% of your product, I actually don't like.
0:00:14 > 0:00:17Your valuation is crazy.
0:00:18 > 0:00:21..as the five Dragon multimillionaires...
0:00:21 > 0:00:22I do know this market.
0:00:22 > 0:00:23You're very investable.
0:00:23 > 0:00:25..do some straight talking.
0:00:25 > 0:00:28- I think that's nonsense. - You're going to be breaking even
0:00:28 > 0:00:29if you're lucky, with that sort of margin.
0:00:29 > 0:00:31You want my help - what, with a magic wand?
0:00:33 > 0:00:36Some entrepreneurs will hit the jackpot...
0:00:36 > 0:00:38You're great, you can tell how competent you are.
0:00:38 > 0:00:41..while others lose the plot.
0:00:41 > 0:00:43You win. I don't make you an offer.
0:00:43 > 0:00:46Do you know when you have that term when you, like, dig a hole?
0:00:46 > 0:00:47Are you feeling that at the moment?
0:00:48 > 0:00:52But who has what it takes to get a Dragon on board?
0:00:52 > 0:00:53You are highly investable.
0:00:53 > 0:00:56- This is not a barter game. - We're getting further apart now.
0:00:58 > 0:01:00That was a little bit crazy, wasn't it?
0:01:33 > 0:01:35Welcome to Dragons' Den -
0:01:35 > 0:01:39the place where entrepreneurs hungry for cash come face-to-face
0:01:39 > 0:01:43with five multimillionaires with an appetite for investment.
0:01:43 > 0:01:44But with their own money at risk,
0:01:44 > 0:01:49expect the Dragons to show no mercy to those whose ideas don't promise
0:01:49 > 0:01:51a lucrative return.
0:01:54 > 0:01:57First to confront the Dragons is an entrepreneur
0:01:57 > 0:02:00youthful in years, but big on ideas.
0:02:03 > 0:02:04I'm a really young entrepreneur.
0:02:05 > 0:02:07The Den started when I was ten.
0:02:07 > 0:02:09I never imagined I'd be here, but look at this!
0:02:11 > 0:02:13And Edward Hollins has had a
0:02:13 > 0:02:16business brainwave that he's determined to make a success of.
0:02:18 > 0:02:20I've got a vision, I want to make my mark on the world.
0:02:30 > 0:02:31Good morning, Dragons.
0:02:31 > 0:02:35I'm Edward Hollins, the young entrepreneur behind DrivenMedia,
0:02:35 > 0:02:37a business that takes an overlooked space
0:02:37 > 0:02:40that's been staring you in your face on your way here today.
0:02:40 > 0:02:42I would have brought one of our adverts along today,
0:02:42 > 0:02:45but I doubt it would have fitted into the lift,
0:02:45 > 0:02:47let alone be allowed into the Den.
0:02:47 > 0:02:50I'm looking to give you a 10% equity stake
0:02:50 > 0:02:52in return for a £30,000 investment.
0:02:52 > 0:02:56DrivenMedia turns commercial trucks travelling across the country into
0:02:56 > 0:02:57mobile billboards.
0:02:57 > 0:03:01I want to run through a few reasons why truck advertising is
0:03:01 > 0:03:03a great media space.
0:03:03 > 0:03:05Firstly, while you're driving, or being driven around,
0:03:05 > 0:03:08you are incredibly receptive to advertising.
0:03:08 > 0:03:13Secondly, each trailer is seen on average by 55,000 people
0:03:13 > 0:03:17on a daily basis. This puts our average cost per thousand at 75p,
0:03:17 > 0:03:21making truck advertising the most cost-effective advertising platform
0:03:21 > 0:03:25in the UK today. I'm going to give you a model
0:03:25 > 0:03:28with how you might look on our billboards. Thank you.
0:03:32 > 0:03:35An enthusiastic pitch from Derby-based Edward Hollins.
0:03:35 > 0:03:40- There you go.- Thank you.- He's seeking a £30,000 fuel injection
0:03:40 > 0:03:43from a Dragon, in return
0:03:43 > 0:03:47for a 10% stake in his mobile billboard business.
0:03:47 > 0:03:49- There you go.- Wow.
0:03:49 > 0:03:54But Peter Jones is wondering if this is already a road well travelled.
0:03:56 > 0:04:00Edward, it's not a new idea, a new concept.
0:04:00 > 0:04:03Trucks have been putting this type of facias on their trailers
0:04:03 > 0:04:07- for many years.- Yeah.- What's different about your business
0:04:07 > 0:04:11- and your idea?- In recent years, with technology, you've been able to put
0:04:11 > 0:04:13GPS trackers on the trailers.
0:04:13 > 0:04:16All of our hauliers have a contract where they've got to do a minimum
0:04:16 > 0:04:19of five hours a day driving time, five days a week.
0:04:19 > 0:04:22And it's using these GPS trackers that we can monitor them to
0:04:22 > 0:04:25make sure they're not stuck in their yard for three months.
0:04:25 > 0:04:28- OK, and have you set the business up?- Yes, it's been trading
0:04:28 > 0:04:32- for 20 months. - You've been trading for 20 months?
0:04:32 > 0:04:34Wow. And you've been doing this while still at school?
0:04:34 > 0:04:37I graduated from the University of Derby
0:04:37 > 0:04:40three months before I set this up.
0:04:40 > 0:04:42- You've graduated?- I'm 22.
0:04:42 > 0:04:45You're not 22! Are you?!
0:04:45 > 0:04:48I am, yes. I've got my passport if you need to see!
0:04:48 > 0:04:52You're 22? Wow, you lucky devil!
0:04:52 > 0:04:54OK. You've been going 20 months.
0:04:54 > 0:04:58- Yes.- And how many trucks have you signed up?
0:04:58 > 0:05:02Four trucks. But we've got over 1,000 trailers we can access
0:05:02 > 0:05:03within 24 hours.
0:05:03 > 0:05:06OK, and what have you turned over in the last 12 months?
0:05:06 > 0:05:08£18,000.
0:05:08 > 0:05:12And out of that 18,000, what's the profit, how do you make money?
0:05:12 > 0:05:15So an advertiser would buy a package for one lorry
0:05:15 > 0:05:18for a 12-month period, for £7,800 plus VAT.
0:05:18 > 0:05:21And then it costs me about £5,500 for production,
0:05:21 > 0:05:24and whatever's left over is the profit for the business.
0:05:24 > 0:05:28So you make £2,000 for every contract you sign?
0:05:28 > 0:05:29Yes.
0:05:29 > 0:05:31Really good. OK.
0:05:32 > 0:05:36The baby-faced entrepreneur reveals a sophisticated business model
0:05:36 > 0:05:40with the potential for some very grown-up returns.
0:05:40 > 0:05:43But textiles expert Touker Suleyman
0:05:43 > 0:05:46has some concerns about the costs involved.
0:05:48 > 0:05:54Edward, your £7,800 for a big haulage is quite expensive.
0:05:56 > 0:06:00- A Luton van is less than a trailer. - What is it for a Luton van?
0:06:00 > 0:06:04- It would be £5,000 plus VAT. - It's still expensive.
0:06:04 > 0:06:08Is that because of the cost of the printing?
0:06:08 > 0:06:10- Yes, exactly. - What does that cost you?
0:06:10 > 0:06:14- Let's say for a Luton van? - It would cost me about £1,500
0:06:14 > 0:06:17- for fully wrapped.- OK. If you focus on that, you could probably reduce
0:06:17 > 0:06:19the cost dramatically.
0:06:19 > 0:06:23I print fabric in Turkey, they charge me 2 a metre.
0:06:23 > 0:06:27- Right?- Yes.- On what material is it printed on?
0:06:27 > 0:06:30- Weather-resistant vinyl. - So if you source the raw material,
0:06:30 > 0:06:34if you go to a printer who's got a printer of that size...
0:06:34 > 0:06:35- You just say, "Print it."- Yeah.
0:06:35 > 0:06:39- I like that idea.- You like the idea? - Yeah.- Good! Good.
0:06:40 > 0:06:43The entrepreneur gets some cost-cutting advice
0:06:43 > 0:06:46from textile supremo Touker Suleyman.
0:06:47 > 0:06:51But Jenny Campbell is wondering why the brakes still appear to be on
0:06:51 > 0:06:54when it comes to the take-up of the advertising.
0:06:56 > 0:07:01Edward, you talked about having 1,000 trailers within 24 hours.
0:07:01 > 0:07:06- Yeah.- But you've only been trading on four lorries.
0:07:06 > 0:07:07- Yes.- Now, what's missing?
0:07:07 > 0:07:09What's getting in the way of you finding the adverts
0:07:09 > 0:07:12to put on the thousand lorries you can source tomorrow?
0:07:12 > 0:07:15- It's the lack of awareness. - With the advertisers?
0:07:15 > 0:07:17Yes, exactly.
0:07:17 > 0:07:21What adverts would you see, are the ones you'd really like to go for?
0:07:21 > 0:07:24So insurance, where there's not a physical product. So, especially
0:07:24 > 0:07:27car insurance. They'll be right in front of their potential audience.
0:07:27 > 0:07:32- OK. Have you ever got in front of an insurance company?- I have, yes.
0:07:32 > 0:07:35- And? Who was it?- Be Wiser and CarFinance 247.
0:07:35 > 0:07:36OK. And what did they say?
0:07:36 > 0:07:39CarFinance are considering it for next year
0:07:39 > 0:07:42and Be Wiser have said, "Come back to me in September
0:07:42 > 0:07:44"because we're very open to this idea."
0:07:44 > 0:07:47OK. I like that, and you'll always find with finance companies,
0:07:47 > 0:07:51insurance companies, all those in that industry, which I come from,
0:07:51 > 0:07:53that they're in budget cycles, OK?
0:07:53 > 0:07:55So there's a timing thing going on here with that industry.
0:07:58 > 0:08:01Interest from a lucrative market that she knows inside-out
0:08:01 > 0:08:04has got Jenny Campbell's wheels turning.
0:08:06 > 0:08:10Deborah Meaden now wants to find out if anyone else is helping to drive
0:08:10 > 0:08:11Edward's company forward.
0:08:14 > 0:08:17So, who's in the business at the moment, is it you?
0:08:17 > 0:08:20- There is just me at the minute. - Yeah.- But we've got two investors
0:08:20 > 0:08:24about a similar age to myself who are investing £5,000 each
0:08:24 > 0:08:28- for a 10% stake each. - OK. But other than that, it's you?
0:08:28 > 0:08:30- Just me.- OK.
0:08:30 > 0:08:32Going forward as the business grows,
0:08:32 > 0:08:35can you just talk about your projections?
0:08:35 > 0:08:38So, this year we're aiming to turn over £250,000.
0:08:38 > 0:08:41OK, so your turnover, you're expecting 250,000.
0:08:41 > 0:08:43Gross profit would be...
0:08:45 > 0:08:47..120,000.
0:08:49 > 0:08:50OK.
0:08:51 > 0:08:53So what does the net profit look like in year one?
0:08:54 > 0:08:57- Of the...?- Of the 250,000.
0:08:57 > 0:08:58Er...
0:09:01 > 0:09:03Er...
0:09:04 > 0:09:08I'm just trying to get that row of numbers that starts with 250,000
0:09:08 > 0:09:11at the top, goes to 120,000 gross profit.
0:09:12 > 0:09:14Net profit?
0:09:16 > 0:09:18Sorry. £80,000.
0:09:21 > 0:09:24When you're in business, you don't need to know a lot of numbers.
0:09:26 > 0:09:28But you do need to know the three numbers
0:09:28 > 0:09:31that are really going to make your business tick.
0:09:31 > 0:09:34- Yes.- You need to know your turnover, your margins, your net profit.
0:09:34 > 0:09:36That's what you need to know.
0:09:38 > 0:09:42Edward's inability to give Deborah Meaden some basic business figures
0:09:42 > 0:09:45is threatening to stall his pitch.
0:09:46 > 0:09:48And now Peter Jones wants to take issue
0:09:48 > 0:09:51with the valuation he's placed on his company.
0:09:51 > 0:09:53Edward...
0:09:55 > 0:09:59..you are asking for 30,000 for 10%.
0:09:59 > 0:10:02- Yes.- So you're valuing your business at 300,000.
0:10:03 > 0:10:07And yet you're valuing the company to your friends at 50,000, cos
0:10:07 > 0:10:10you've just said they invest 5,000 and they get 10% of the company.
0:10:10 > 0:10:13Is that just because you think I've got more money than them?
0:10:15 > 0:10:16No, it's because of their experience,
0:10:16 > 0:10:18they've actually come through your programme.
0:10:18 > 0:10:20- Have they?- Yes, both of them.
0:10:20 > 0:10:23So they're from the Peter Jones Enterprise Academy?
0:10:23 > 0:10:25- Yes.- OK, well, then I understand
0:10:25 > 0:10:28why they're worth a lot more than any Dragon!
0:10:28 > 0:10:29THEY CHUCKLE
0:10:29 > 0:10:32But whilst it's lovely to hear that,
0:10:32 > 0:10:35and I think that's really great, why would you value your business
0:10:35 > 0:10:38with me at 300,000, and 50,000 to them?
0:10:38 > 0:10:40I thought they'd be able to contribute to the business
0:10:40 > 0:10:44for a lot longer, you know, because obviously they're sort of my age,
0:10:44 > 0:10:48so they're going to be working... 50, 60 years, worst case.
0:10:48 > 0:10:50Towards the eventual goal.
0:10:50 > 0:10:52Are you suggesting it's because I'm old
0:10:52 > 0:10:55that you don't want to give me too much of your company?
0:10:56 > 0:10:59No, I think it was at the stage of the business...
0:10:59 > 0:11:02Do you know when you have that term where it's, like, dig a hole?
0:11:02 > 0:11:05- Yeah, I've got to stop digging! - Are you feeling that at the moment?
0:11:05 > 0:11:06Yeah.
0:11:06 > 0:11:08I'd better stop.
0:11:09 > 0:11:13Edward, I think you're very investable.
0:11:14 > 0:11:18I think you are confident, you listen to advice.
0:11:18 > 0:11:22As a business in terms of size, I think it's very small.
0:11:22 > 0:11:26I think you need to build it, prove it a bit more, the model,
0:11:26 > 0:11:28and make it work.
0:11:28 > 0:11:30But unfortunately the business for me today...
0:11:32 > 0:11:36..I won't be investing. But all the best. I'm out.
0:11:38 > 0:11:43Tej Lalvani decides not to climb aboard the lorry billboard business.
0:11:43 > 0:11:47Has Peter Jones heard anything to encourage him to reunite
0:11:47 > 0:11:51with his Academy alumni and invest in the young entrepreneur?
0:11:55 > 0:12:00I like this concept, I think that this is a concept for the future.
0:12:00 > 0:12:03I think if you'd got really on top of your numbers and come in here
0:12:03 > 0:12:04with a really concise plan...
0:12:06 > 0:12:08..it could have gone really well for you.
0:12:10 > 0:12:12But it's too early a stage at the moment
0:12:12 > 0:12:15for me to take you on that journey and invest in you.
0:12:18 > 0:12:19So I'm going to say that I'm out.
0:12:20 > 0:12:23But I wish you every best of luck cos I think
0:12:23 > 0:12:27you are an entrepreneur-in-waiting and you're going to make it happen.
0:12:27 > 0:12:28Thank you.
0:12:30 > 0:12:34Edward, my job, I feel, as an investor, is to take the seed
0:12:34 > 0:12:38of this idea and to really make that business work.
0:12:39 > 0:12:43Not to become a mentor, a daily mentor, running a business.
0:12:43 > 0:12:45And I think you're still in that phase.
0:12:46 > 0:12:50So I'm really sorry, Edward, but I won't be investing. I'm out.
0:12:52 > 0:12:55Deborah Meaden is unconvinced
0:12:55 > 0:12:58and steers clear of the advertising offering.
0:12:58 > 0:13:02Touker Suleyman has already dished out some business advice.
0:13:02 > 0:13:06Will he now go one step further and dish out some dosh?
0:13:08 > 0:13:10- Edward, where do you live? - I live in Derby.
0:13:10 > 0:13:12Derby. Ah.
0:13:12 > 0:13:15- That's north.- I know where it is!
0:13:16 > 0:13:20I am excited for you. And I think you will succeed.
0:13:20 > 0:13:23But you need intense mentoring.
0:13:23 > 0:13:25And it's disappointing you live in Derby
0:13:25 > 0:13:28because I would've liked you in my office every day,
0:13:28 > 0:13:32working with us, you know? I would've liked to be your mentor.
0:13:33 > 0:13:36But it's not going to be possible today.
0:13:36 > 0:13:38I'm not going to invest, and I'm out.
0:13:40 > 0:13:44Touker Suleyman keeps his pounds in his pocket and becomes
0:13:44 > 0:13:46the fourth Dragon to walk away from a deal.
0:13:48 > 0:13:52Jenny Campbell is the youthful entrepreneur's last chance
0:13:52 > 0:13:56of investment. Will she take his business to the next level
0:13:56 > 0:13:58or send him away with nothing?
0:14:01 > 0:14:02Edward, how are you feeling?
0:14:03 > 0:14:06- Still a bit nervous!- Presumably you're nervous about walking out
0:14:06 > 0:14:09without an investment, because that's what you came for today.
0:14:09 > 0:14:10Yes.
0:14:11 > 0:14:12So, look, this is where I am.
0:14:14 > 0:14:19I sold my business last year, having built it from a very poorly business
0:14:19 > 0:14:21to a very successful business.
0:14:21 > 0:14:25And I had a fleet of 4,000 ATMs in the UK and a thousand in Europe.
0:14:25 > 0:14:28They're metal boxes. I know how to wrap metal boxes.
0:14:31 > 0:14:33You are highly investable.
0:14:35 > 0:14:37I am going to make you an offer.
0:14:39 > 0:14:42I'm going to offer you all of the money...
0:14:44 > 0:14:48..but for my investment in you, I would want 20% of your business.
0:14:48 > 0:14:49I'd be very happy with that.
0:14:50 > 0:14:54Well, that was a quick response! I need to teach you
0:14:54 > 0:14:56some of that stuff. But anyway, for now...
0:14:56 > 0:14:59- I was going to say!- In one of the quickest deliberations ever seen
0:14:59 > 0:15:03in the Den, the entrepreneur accepts Jenny Campbell's terms...
0:15:03 > 0:15:04- Thank you, all.- Congratulations.
0:15:04 > 0:15:08..and drives off into a lucrative future with a Dragon on board.
0:15:09 > 0:15:11And, I LOVE the fact that you live in Derby.
0:15:11 > 0:15:13- I'm a northern girl. - Thank you very much.
0:15:15 > 0:15:1820% is absolutely perfect, so that's why I went, "Yeah!"
0:15:18 > 0:15:21I'm taking that now before you take it away!
0:15:21 > 0:15:24I love the fact that he accepted your offer before you finished.
0:15:26 > 0:15:29- Bless him.- He knows a good offer when he sees one.
0:15:29 > 0:15:32I think me and Jenny could be the northern powerhouse.
0:15:32 > 0:15:35The potential's there. I'm just really excited
0:15:35 > 0:15:37and I can't wait to get going.
0:15:43 > 0:15:48Next to face the Dragons is Manchester-based Rimi Dabhia...
0:15:50 > 0:15:54..who is hoping a much-practised pitch will stand her in good stead
0:15:54 > 0:15:56for the white heat of the Den.
0:15:57 > 0:15:59Preparing to go into the Den,
0:15:59 > 0:16:02I've pitched to family and friends. However,
0:16:02 > 0:16:05I think the Dragons will be a little bit more intense.
0:16:06 > 0:16:09I am in awe of Deborah Meaden,
0:16:09 > 0:16:13and I would love for her to invest, so bring it on, Dragons.
0:16:21 > 0:16:25Hello, Dragons. My name's Rimi,
0:16:25 > 0:16:28and I am founder and head hustler at LoveRaw.
0:16:28 > 0:16:31We make innovative, healthy food and drink products
0:16:31 > 0:16:35which are dairy-, gluten-, and refined-sugar-free.
0:16:35 > 0:16:41Today, I am asking for £50,000 investment for 5% of my company.
0:16:41 > 0:16:45When I started making snack bars in 2013,
0:16:45 > 0:16:47there was nothing good quality on the market,
0:16:47 > 0:16:49so there was the eureka moment.
0:16:49 > 0:16:51I started making the bars in my tiny kitchen at home.
0:16:53 > 0:16:55I started the business with £600.
0:16:55 > 0:17:00Six months later, I was hand-making 3,000 bars a week.
0:17:01 > 0:17:06A year later, we launched our organic superfood boosters,
0:17:06 > 0:17:09which are a nutritionally dense powder added to your everyday meals.
0:17:09 > 0:17:10And, two months ago,
0:17:10 > 0:17:13we launched our flavoured on-the-go almond drinks,
0:17:13 > 0:17:15which come in three eclectic flavours.
0:17:17 > 0:17:20Some of our stockists include Whole Foods, Planet Organic
0:17:20 > 0:17:22and, of this week, Sainsbury's.
0:17:23 > 0:17:27The potential is huge, so I welcome any questions, but first,
0:17:27 > 0:17:29would you like to try some products?
0:17:29 > 0:17:31- Please.- We'd love to, thanks.
0:17:32 > 0:17:35A confident pitch from entrepreneur Rimi Dabhia...
0:17:35 > 0:17:37It's quite a large pack.
0:17:37 > 0:17:41..who's hoping her range of powdered food supplements, natural drinks
0:17:41 > 0:17:43- and snack bars...- Thank you. - Oh, wow!
0:17:43 > 0:17:46..will be a tasty proposition for a Dragon.
0:17:47 > 0:17:53She's asking for £50,000 in return for a 5% stake in her business.
0:17:53 > 0:17:56Shake them before you open the drinks, please.
0:17:56 > 0:17:59Jenny Campbell is first to grill the healthy head honcho.
0:18:02 > 0:18:05- Hi, Rimi.- Hi. - You've done fantastically well.
0:18:05 > 0:18:08You know, you're trading with all the right people,
0:18:08 > 0:18:10so just tell me last year's numbers, then.
0:18:10 > 0:18:12Turnover, gross profit, net profit.
0:18:12 > 0:18:19In year one, the revenue was 170,000, with net profit of 11.
0:18:19 > 0:18:21Year two
0:18:21 > 0:18:24was 129 net profit.
0:18:24 > 0:18:28Year three was 86,000 net.
0:18:30 > 0:18:34Last year's figures, the revenue's been 274,000,
0:18:34 > 0:18:37but we made a net loss of 58,000.
0:18:39 > 0:18:43- What happened?- It's, erm...- Cos that was going swimmingly well.
0:18:43 > 0:18:49In 2015, I experienced major complications in my pregnancy...
0:18:49 > 0:18:51- OK, sorry to hear that. - ..and I couldn't work.
0:18:51 > 0:18:54I was told, bed rest, no stress...
0:18:54 > 0:18:57So the business had to take a step back because family life
0:18:57 > 0:19:01- was important.- For six months. And that lag, you know,
0:19:01 > 0:19:03in '15-'16, has shown up in '16-'17.
0:19:03 > 0:19:09- OK.- However, the last three months of sales have been improving,
0:19:09 > 0:19:12and the drinks have been launched with Sainsbury's today.
0:19:12 > 0:19:16- Today?- Yeah.- OK, congratulations! - Thank you.
0:19:17 > 0:19:21The entrepreneur reveals a big supermarket contract
0:19:21 > 0:19:23and a determination to succeed -
0:19:23 > 0:19:27two big ticks on any shrewd investor's check list.
0:19:27 > 0:19:30And Tej Lalvani is thirsty for information
0:19:30 > 0:19:34on whether Rimi's margins are just as impressive.
0:19:35 > 0:19:38- Hi, Rimi.- Hi. - So, you mentioned the drinks.
0:19:38 > 0:19:41Tell me your cost of manufacture, wholesale and retail price.
0:19:41 > 0:19:46They're £2.29. We make them for 80p and we sell them at £1.25.
0:19:46 > 0:19:49Wow, I really am surprised.
0:19:49 > 0:19:51That leaves you no margin at all.
0:19:51 > 0:19:53You are going to be breaking even if you're lucky,
0:19:53 > 0:19:54with that sort of margin.
0:19:54 > 0:19:56Can you just tell me about the other products?
0:19:56 > 0:19:59The blends are £3...
0:19:59 > 0:20:01£3 cost?
0:20:01 > 0:20:03- £3 cost.- Wow, that's a lot.
0:20:03 > 0:20:07Yes. We sell them on at £8.21.
0:20:07 > 0:20:09And then they retail for £14.99.
0:20:10 > 0:20:14Is someone going to spend £15 on a powder which they are not sure
0:20:14 > 0:20:17how it's going to taste when they put it on food?
0:20:17 > 0:20:19We've sold, erm...
0:20:19 > 0:20:22..63,000 units so far.
0:20:22 > 0:20:24Well, the last year, how much have you sold?
0:20:26 > 0:20:28Sorry, I can't tell you that.
0:20:28 > 0:20:32- Erm...- Sorry to interrupt you, but I think that's really quite important.
0:20:32 > 0:20:34- You can't answer it? - In the last 12 months,
0:20:34 > 0:20:36how many have we sold with the...
0:20:36 > 0:20:39Yeah, that tells us where the business is now, cos you've had
0:20:39 > 0:20:41a bit of a freefall in the business at one point.
0:20:41 > 0:20:43You've given us a good reason why, I appreciate that.
0:20:43 > 0:20:46But, actually, it sounds like that could...
0:20:46 > 0:20:48It was in my head, sorry, but, erm...
0:20:48 > 0:20:51I just can't remember the...
0:20:52 > 0:20:54..the amount.
0:20:57 > 0:21:01The entrepreneur forgets her figures and suffers a setback in the Den.
0:21:02 > 0:21:05Deborah Meaden has been sampling the products.
0:21:05 > 0:21:08But it's the packaging that has caught her attention.
0:21:08 > 0:21:11Rimi, I don't like your branding.
0:21:12 > 0:21:15I don't think that product looks like it's got
0:21:15 > 0:21:18- anything to do with that product on the right.- Yeah.
0:21:18 > 0:21:20They look incredibly different.
0:21:20 > 0:21:23We were trying to be a little bit different on the blends.
0:21:23 > 0:21:26Well, the one thing about branding is you want to be able to look at
0:21:26 > 0:21:30a product and know that it is part of an instantly recognisable set.
0:21:30 > 0:21:32And I didn't get that at all, and I think
0:21:32 > 0:21:34if you carry on with those three products
0:21:34 > 0:21:38you really need to look like a set, but thereby hangs MY issue.
0:21:40 > 0:21:42I think that's your product.
0:21:44 > 0:21:47It tastes lovely, but it's also really good for you.
0:21:47 > 0:21:49Are there many more out there?
0:21:49 > 0:21:52Are you actually the first on-the-go cold-pressed...?
0:21:52 > 0:21:54No, there's no other on the market with the almond drinks
0:21:54 > 0:21:55at the moment, they are the...
0:21:55 > 0:21:58That's your interest, and that's why people are...
0:21:58 > 0:22:03I can see why those would... I can absolutely see why they would sell.
0:22:03 > 0:22:07Rimi, how you've created this is really good.
0:22:09 > 0:22:10But I can't change one thing.
0:22:12 > 0:22:14About 80% of your product, I actually don't like.
0:22:17 > 0:22:22And, I have to personally believe it, taste it, feel it...
0:22:23 > 0:22:26..and you haven't given me that Levi Roots moment.
0:22:28 > 0:22:29So, for that reason, I'm out.
0:22:32 > 0:22:35Peter Jones decides the health food company isn't to his taste,
0:22:35 > 0:22:39and becomes the first Dragon to leave the negotiations.
0:22:40 > 0:22:44And now, Touker Suleyman is wondering if the business has
0:22:44 > 0:22:47a long-term future in such a congested market.
0:22:50 > 0:22:54It's amazing how, from £600, you've created a brand,
0:22:54 > 0:22:58you've created a business, but I'm just trying to get my head round...
0:22:59 > 0:23:03..where the business is going to go beyond this year and next year.
0:23:03 > 0:23:08Do you think that you've got enough innovation to sustain the growth and
0:23:08 > 0:23:11- be ahead of the game? - I do believe that, yes.
0:23:11 > 0:23:16Erm... We are launching in 320 Waitrose stores in July,
0:23:16 > 0:23:20we are in deep negotiation with Ocado
0:23:20 > 0:23:24and I have a meeting with Marks & Spencer next month.
0:23:28 > 0:23:29I'm going to make you an offer.
0:23:31 > 0:23:34I think, in this case, two Dragons might be better than one...
0:23:36 > 0:23:38..so I'm willing to put up -
0:23:38 > 0:23:41I don't know if Tej wants to come in with me -
0:23:41 > 0:23:45half the money, which is £25,000,
0:23:45 > 0:23:49but I want 15%. If Tej agrees, then you will have two Dragons.
0:23:53 > 0:23:57Touker Suleyman makes a half offer for the business,
0:23:57 > 0:24:00but chooses to invite only one other Dragon to join him.
0:24:00 > 0:24:05Will Tej Lalvani who, on paper, is Rimi's ideal investor,
0:24:05 > 0:24:08accept the invitation to partner up,
0:24:08 > 0:24:10or will he even make a competing bid?
0:24:13 > 0:24:17Rimi, I think the bar business is very competitive,
0:24:17 > 0:24:20it's going to be struggling. I'm not really keen on the taste of them.
0:24:20 > 0:24:22- OK.- The powders,
0:24:22 > 0:24:25I'm not sure what sort of market you are going to get with that,
0:24:25 > 0:24:26and it's a bit confusing.
0:24:27 > 0:24:29And your logo does not stand out.
0:24:33 > 0:24:36But that obviously can be sorted out.
0:24:37 > 0:24:41And what I do every day is branding, basically, and I think,
0:24:41 > 0:24:44what you developed in terms of formulation and natural press
0:24:44 > 0:24:46is unique.
0:24:48 > 0:24:51But my main issue is your margin.
0:24:51 > 0:24:53Yeah.
0:24:55 > 0:24:58At 45p per product, you've got all your overheads to cover,
0:24:58 > 0:25:00you've got your marketing budget.
0:25:00 > 0:25:02So...
0:25:15 > 0:25:16..I think, on that reason alone...
0:25:18 > 0:25:19..I'm going to have to say...
0:25:22 > 0:25:23..I'm out.
0:25:25 > 0:25:30Tej Lalvani decides the health food business is a risk too far.
0:25:31 > 0:25:33With his hopes of a partnership dashed,
0:25:33 > 0:25:37Touker Suleyman must decide whether to go it alone.
0:25:37 > 0:25:41Rimi, if Tej is out, I'm very disappointed.
0:25:41 > 0:25:43Erm...
0:25:43 > 0:25:45I thought two Dragons would be better than one.
0:25:47 > 0:25:48And for that reason, I'm out.
0:25:51 > 0:25:54With just two Dragons remaining,
0:25:54 > 0:25:56the entrepreneur is running out of options.
0:25:58 > 0:25:59Does Jenny Campbell think
0:25:59 > 0:26:02there's a business opportunity in the health food enterprise?
0:26:10 > 0:26:13When you came into the Den, and announced yourself,
0:26:13 > 0:26:15you said you were the head hustler.
0:26:15 > 0:26:18- Yeah.- And I love that phrase and I began to think, you know,
0:26:18 > 0:26:21I can help that girl hustle cos she's definitely hustled so far.
0:26:23 > 0:26:25But, I really wanted to hear the, erm...
0:26:25 > 0:26:28..the Dragon leading the healthy lifestyle revolution say
0:26:28 > 0:26:31that he can do something with this and take it somewhere,
0:26:31 > 0:26:33and I've not heard that.
0:26:35 > 0:26:38- So, I wish you all the best, and I'm out.- Thank you.
0:26:41 > 0:26:42Rimi...
0:26:44 > 0:26:47..this, I think, is your big one.
0:26:49 > 0:26:51I do think you've got something in this.
0:26:53 > 0:26:55And I think you're really good.
0:27:03 > 0:27:05I'm going to make you an offer.
0:27:08 > 0:27:12But your valuation is crazy.
0:27:12 > 0:27:13OK.
0:27:14 > 0:27:19I did work with somebody in finance to work out valuation.
0:27:19 > 0:27:22You hold on to your valuation, I will hold on to my valuation.
0:27:22 > 0:27:25And we will see whether there is a way of meeting in the middle.
0:27:27 > 0:27:30I thought you were going to talk me out of making you an offer, then.
0:27:30 > 0:27:31No, I would never do that!
0:27:31 > 0:27:33However, we did also...
0:27:33 > 0:27:35This is a first in the Den,
0:27:35 > 0:27:37I've never actually been talked out of making an offer.
0:27:37 > 0:27:41We have had - we have been approached by Angel Investors, also.
0:27:41 > 0:27:46- And they have valued at 1.5, which is, yeah...- OK.
0:27:46 > 0:27:48You win. I don't make you an offer.
0:27:50 > 0:27:53No, but I wouldn't want that. I-I-I-I'm here today...
0:27:53 > 0:27:55No, but that was a little bit crazy, wasn't it?
0:27:55 > 0:27:58- We're getting further apart, now. - No.
0:27:58 > 0:28:02I don't really care what other investors out there think.
0:28:02 > 0:28:03Of course.
0:28:07 > 0:28:10But I'm going to offer you all of the money...
0:28:13 > 0:28:16..and I want...
0:28:16 > 0:28:17I want 30% of the business.
0:28:21 > 0:28:23Thank you very much for your offer.
0:28:25 > 0:28:27- Can I, erm...- Talk to the wall?
0:28:27 > 0:28:29- Yeah.- Go and talk to the wall.
0:28:31 > 0:28:34There's just a single offer to consider,
0:28:34 > 0:28:37but Deborah Meaden is asking for six times the equity
0:28:37 > 0:28:41that the entrepreneur was originally offering.
0:28:41 > 0:28:45Will she make the extra sacrifice to get a Dragon on board?
0:28:53 > 0:28:57Deborah, would you be willing to do 10%?
0:28:57 > 0:28:59- 10%?- 10%?
0:28:59 > 0:29:00No.
0:29:03 > 0:29:06When I sit here, I don't just throw a number out and think I'm going
0:29:06 > 0:29:08to get away with it. I sit here and I think,
0:29:08 > 0:29:10"Actually, what do I think this business is worth?"
0:29:10 > 0:29:14- So, I'm really sorry, but that was my fair offer.- OK.
0:29:24 > 0:29:27I-I just can't stretch to 30.
0:29:27 > 0:29:30The most I can maybe do is 15.
0:29:34 > 0:29:36- I think we are too far apart.- Yeah.
0:29:38 > 0:29:40I'm afraid I'm out.
0:29:40 > 0:29:43- Thank you.- Good luck.
0:29:43 > 0:29:46- Thank you. - Deborah Meaden stands her ground
0:29:46 > 0:29:50and ends her interest in the health food offering.
0:29:50 > 0:29:53And the entrepreneur makes her exit with her equity intact,
0:29:53 > 0:29:57but minus the £50,000 she was seeking.
0:29:57 > 0:30:00She should have taken that offer. I think it's good in a way, because
0:30:00 > 0:30:02those margins... It would be difficult to get away with.
0:30:02 > 0:30:05- I think you got away with it. - You were lucky not to get into that.
0:30:05 > 0:30:07- Yeah, I think so.- Well, I wanted to.
0:30:09 > 0:30:14I let the Dragon get away, so, yeah, I've got to live with that.
0:30:14 > 0:30:18However, I am still a hustler, and I'll continue to hustle,
0:30:18 > 0:30:20and I will take it to the next level.
0:30:28 > 0:30:31So far, the Dragons have been firm...
0:30:31 > 0:30:35- It's quite expensive. - ..but also more than fair...
0:30:35 > 0:30:37I am going to make you an offer, you are highly investable.
0:30:37 > 0:30:42..and as the remaining entrepreneurs try their luck in the Den...
0:30:42 > 0:30:45- Lee, listen, focus.- ..they'll need to bring their A-game.
0:30:45 > 0:30:47I don't know what that means.
0:30:47 > 0:30:50I don't see what's even slightly unique about this.
0:30:50 > 0:30:52And, for those who succeed...
0:30:52 > 0:30:54You're great, you can tell how competent you are.
0:30:55 > 0:30:58..the Dragons are prepared to put up a fight.
0:30:58 > 0:31:00Is there one Dragon which you really want,
0:31:00 > 0:31:02or is it just playing games between us?
0:31:06 > 0:31:08Walking into the Den can be
0:31:08 > 0:31:11a nerve-racking experience, but next up
0:31:11 > 0:31:13is a teacher from London,
0:31:13 > 0:31:16who has a novel approach to taking on the Dragons.
0:31:19 > 0:31:22I work with children every day of the week.
0:31:23 > 0:31:24So, when I go into the Den,
0:31:24 > 0:31:29I am going to treat the Dragons as if they're children in my classroom.
0:31:29 > 0:31:34And the no-nonsense entrepreneur is hoping to get top marks for what she
0:31:34 > 0:31:37believes is a pioneering concept.
0:31:37 > 0:31:41I have created something so unique and so innovative,
0:31:41 > 0:31:45and I know that my business changes children's lives.
0:31:56 > 0:31:57Hello, Dragons.
0:31:57 > 0:31:59My name is Lee Dein.
0:31:59 > 0:32:05And I'm looking for £60,000 in exchange for 10% of my business.
0:32:05 > 0:32:10There are over 2 million children who struggle with their handwriting.
0:32:10 > 0:32:15The fundamental problem is that many teachers are not taught
0:32:15 > 0:32:17how to teach handwriting,
0:32:17 > 0:32:23and there are too many complicated alphabet curls and letter strokes.
0:32:23 > 0:32:27So, that's why I created the simple Magic Link font
0:32:27 > 0:32:31and Handwriting Programme. And this teaches neat, cursive,
0:32:31 > 0:32:35joined-up handwriting in 30 simple steps,
0:32:35 > 0:32:38and is perfect for primary and secondary schoolchildren.
0:32:39 > 0:32:43Since I started my company, 2½ years ago,
0:32:43 > 0:32:47over 2,000 children have benefited from my programme.
0:32:47 > 0:32:50I have some examples of my Magic Link workbooks,
0:32:50 > 0:32:52which I'm going to hand out.
0:32:55 > 0:32:59Hoping the Dragons will soon be writing their names
0:32:59 > 0:33:03on an investment cheque is language teacher Lee Dein.
0:33:04 > 0:33:08If any of you Dragons would like to write this sentence down
0:33:08 > 0:33:11and copy what's on top, I will give you some Magic Link tips.
0:33:11 > 0:33:14Oh, thank you, Peter.
0:33:14 > 0:33:19She's asking for £60,000 in return for a 10% share of her programme,
0:33:19 > 0:33:22which uses a unique font to improve handwriting.
0:33:22 > 0:33:25Oh, sorry, Peter, could you copy the sentence on top?
0:33:25 > 0:33:27- Oh, OK.- But if you want to carry that sentence on,
0:33:27 > 0:33:31- that's completely fine.- He's not very good at doing as he's told.
0:33:31 > 0:33:35Oh, OK. Quite neat writing, I am quite impressed.
0:33:35 > 0:33:38I do think there is a mistake on there, though, Peter.
0:33:38 > 0:33:41- Oh, Deborah?- Let me just correct it for you.
0:33:41 > 0:33:45That's not exactly a P - that a D, look.
0:33:45 > 0:33:47E, that's OK.
0:33:47 > 0:33:49B-O-R...
0:33:49 > 0:33:50A-H.
0:33:50 > 0:33:52There you go.
0:33:54 > 0:33:56Now that we know who is top of the class,
0:33:56 > 0:34:01Touker Suleyman wants to move from the blackboard to business.
0:34:01 > 0:34:03And he has some personal experience to draw on.
0:34:05 > 0:34:09- Right, Lee.- Yes.- I am very fortunate to have two daughters
0:34:09 > 0:34:13whose writing is impeccable. They were taught correctly.
0:34:13 > 0:34:17So, I think, it's a good cause, but is it a good business?
0:34:17 > 0:34:19- How does it work?- Yeah, so,
0:34:19 > 0:34:21if you are a parent with a child with bad writing,
0:34:21 > 0:34:25you can either choose to go to one of my licensees,
0:34:25 > 0:34:28who will give you lessons, or you could buy it online.
0:34:28 > 0:34:30I have three licensees.
0:34:30 > 0:34:35Last year, I only had one licensee who brought in a revenue of £1,000.
0:34:35 > 0:34:38This year, my licensees brought in a revenue of £6,000.
0:34:38 > 0:34:41So, the licensee model is small.
0:34:41 > 0:34:43Very small, yes. Small, compared to the rest.
0:34:43 > 0:34:47So, I'm assuming that the other part is massive to get a valuation
0:34:47 > 0:34:49of 600,000?
0:34:49 > 0:34:51It will be massive.
0:34:51 > 0:34:52WILL be massive?
0:34:52 > 0:34:56Yeah, because, my online sales last year...
0:34:56 > 0:34:58There were 60 sales, there's half...
0:34:58 > 0:35:01- 600,000, sorry?- No, 60...
0:35:01 > 0:35:05- Oh, 60!- 60. And this year, there have been 200.
0:35:05 > 0:35:09Sounds like this is a niche business for you.
0:35:09 > 0:35:11Oh, it's more than a niche business for me.
0:35:11 > 0:35:15- Can I tell you why? - Tell me.- Because, Apple,
0:35:15 > 0:35:19the richest company in the world, have just spent millions of pounds
0:35:19 > 0:35:21investing in their Apple pencil.
0:35:21 > 0:35:24Samsung has just followed suit,
0:35:24 > 0:35:26so they also feel that handwriting
0:35:26 > 0:35:30is a very important skill which they would like to revive.
0:35:32 > 0:35:35Lee bats away Touker Suleyman's worries
0:35:35 > 0:35:37that her business is small-scale,
0:35:37 > 0:35:42by aligning herself with some handwriting-friendly mega brands.
0:35:42 > 0:35:46But, tech giant Peter Jones doesn't appear to be convinced.
0:35:47 > 0:35:53Lee, you are relating your business model to two technology Goliaths,
0:35:53 > 0:35:57who, you are suggesting, are only doing this to improve handwriting.
0:35:57 > 0:35:59I think that's nonsense.
0:36:00 > 0:36:03The stylus pen does a lot of different things.
0:36:03 > 0:36:05It's used for design, it's not just about handwriting.
0:36:05 > 0:36:09I think they are recognising that adults would like to take notes
0:36:09 > 0:36:13by hand on a tablet, which has never been done before.
0:36:13 > 0:36:16Yeah, but I don't get why that relates to your business,
0:36:16 > 0:36:19and I don't see what's even slightly unique about this.
0:36:19 > 0:36:24- But that's the programme. That's the... Your...- That's...just lines.
0:36:24 > 0:36:26You just write in between the lines.
0:36:26 > 0:36:29I'm trying to work out why you think this is a business.
0:36:29 > 0:36:31I think it's a fantastic business, because last year,
0:36:31 > 0:36:34when I started my company, I had three schools that were interested,
0:36:34 > 0:36:37and this year, I've had 14 schools who are interested.
0:36:37 > 0:36:39No, I can see your skill...
0:36:39 > 0:36:41So, why is that not a good business,
0:36:41 > 0:36:44if children can achieve neat writing?
0:36:45 > 0:36:49You've had 2,000 children over 2½ years go through your programme.
0:36:49 > 0:36:53- How much income has that generated?- £146,000.
0:36:53 > 0:36:55OK.
0:36:55 > 0:36:57And how much net profit?
0:36:57 > 0:36:59Erm, £104,000.
0:36:59 > 0:37:01- Over two years.- Yeah.
0:37:01 > 0:37:02It's 50,000 a year.
0:37:02 > 0:37:05And the people that you've employed via your licensing,
0:37:05 > 0:37:06they've done it for free?
0:37:06 > 0:37:11They pay me £100 royalty per child, and I send them the pack...
0:37:11 > 0:37:12And they charge per child...?
0:37:12 > 0:37:16They are self-employed, and they charge £40 a session.
0:37:16 > 0:37:19OK, then I slightly take it back.
0:37:19 > 0:37:21I think I could have been wrong in saying
0:37:21 > 0:37:25that you haven't got a business for yourself at the moment.
0:37:25 > 0:37:27Oh, thank you.
0:37:28 > 0:37:29A rare event,
0:37:29 > 0:37:33as the entrepreneur's spirited defence of her business
0:37:33 > 0:37:37elicits a reappraisal from Peter Jones.
0:37:37 > 0:37:41But Tej Lalvani is wondering whether the teacher's work could be cribbed.
0:37:43 > 0:37:47Lee, well, you definitely have me as a customer for your book,
0:37:47 > 0:37:49cos I need to improve my handwriting.
0:37:49 > 0:37:51But, this book that you've got here,
0:37:51 > 0:37:55what's stopping a big educational book company from copying
0:37:55 > 0:38:00- the same thing?- Because, there is a patent on the font,
0:38:00 > 0:38:02both here and in the US.
0:38:02 > 0:38:06Right, so, if you had a different font, you could bypass the patent.
0:38:06 > 0:38:10But the programme wouldn't work, because the font is so clear
0:38:10 > 0:38:13that children understand how to write letters
0:38:13 > 0:38:15in a very clear format.
0:38:15 > 0:38:18Lee, sorry, can I just pick up on that?
0:38:18 > 0:38:21I am amazed you can get a patent on a font.
0:38:21 > 0:38:22Well, I did.
0:38:23 > 0:38:25A patent?!
0:38:25 > 0:38:28Yeah, with the patent office, I've got my patent.
0:38:28 > 0:38:30- A patent?!- Yeah.
0:38:32 > 0:38:34- You've got it here?- I can show you.
0:38:34 > 0:38:36Er...
0:38:36 > 0:38:39I might need some help finding this.
0:38:39 > 0:38:42OK, oh, can I show you... Oh, here we go.
0:38:42 > 0:38:44Yeah, this is the UK.
0:38:44 > 0:38:46Oh, no, hang on, er...
0:38:46 > 0:38:49Yeah, I think this is it. Is that right?
0:38:49 > 0:38:52No. That's a registration design - that is what I think you've got.
0:38:55 > 0:38:58Here we go. Oh, yeah, but look it's the design on the font,
0:38:58 > 0:39:01- so there's the font that's been approved...- No, hold on a minute.
0:39:01 > 0:39:03- Patent, look, the word "patent". - Well, no.
0:39:03 > 0:39:06- And there's the America one. Magic Link...- Lee, listen, focus.
0:39:07 > 0:39:09You have got a registered design.
0:39:09 > 0:39:14It is very, very different to a patent. Do you understand that?
0:39:14 > 0:39:15Erm...
0:39:15 > 0:39:18The difference between the two is patent is much stronger.
0:39:21 > 0:39:23Lee, you've done a very nice thing here,
0:39:23 > 0:39:26you are doing something that's really important.
0:39:26 > 0:39:28But, I'm looking for investments.
0:39:28 > 0:39:31- So, I won't be investing. I'm out.- OK.
0:39:33 > 0:39:37The teacher gets a ticking off, as her lack of a proper patent
0:39:37 > 0:39:41sees Deborah Meaden make an early exit from the negotiation.
0:39:42 > 0:39:47Now Touker Suleyman wants to steer the discussion to Lee's projections.
0:39:51 > 0:39:53Let's look at your business.
0:39:53 > 0:39:55- The run rate.- OK.
0:39:55 > 0:39:57So, this financial year, which has just finished,
0:39:57 > 0:40:00I've turned over £77,000,
0:40:00 > 0:40:04with a £74,000 gross profit
0:40:04 > 0:40:07and a £64,000 net profit.
0:40:07 > 0:40:10What do you predict next year?
0:40:10 > 0:40:12So I'm predicting it would, with your help,
0:40:12 > 0:40:16- it would double to 150,000.- With my help? What, with a magic wand?
0:40:16 > 0:40:20Well, I think if you were to tell your fellow businesspeople,
0:40:20 > 0:40:22who are in education, about my product,
0:40:22 > 0:40:25and you spread the word for me, I'd get a lot more sales.
0:40:25 > 0:40:28But you could do that yourself, on Facebook.
0:40:28 > 0:40:30Oh, but it's great to have you behind me!
0:40:30 > 0:40:33CHUCKLING
0:40:34 > 0:40:38You're making money. You've got to use some of that money to employ
0:40:38 > 0:40:40somebody to be your sales person.
0:40:40 > 0:40:44You don't have to give up the equity. Keep it all to yourself.
0:40:45 > 0:40:49I'm really sorry, I've not got the time that I could dedicate to you
0:40:49 > 0:40:50for what you want.
0:40:51 > 0:40:53And I'm out.
0:40:54 > 0:40:56Touker Suleyman drops out of proceedings,
0:40:56 > 0:41:00becoming the second Dragon to decline the deal.
0:41:00 > 0:41:05Does Jenny Campbell think the handwriting business has legs?
0:41:05 > 0:41:08Lee, I think what you are doing is really, really laudable.
0:41:08 > 0:41:12I love neat handwriting, but I've got two boys and, you know,
0:41:12 > 0:41:15to help them hand-write better, I'd go to a high street stationer's
0:41:15 > 0:41:17and buy a book that looked similar to this,
0:41:17 > 0:41:19and it's probably got tracing paper in or something,
0:41:19 > 0:41:21and you are copying it.
0:41:21 > 0:41:24So I think there are lots of other ways to do it.
0:41:24 > 0:41:26- But they don't... - But they're not as good as yours.
0:41:26 > 0:41:28They don't work. That's why there are so many children
0:41:28 > 0:41:32- with bad handwriting, that's the evidence.- Yes.
0:41:32 > 0:41:36But I don't get that it's a business at all, and I think the Magic Link -
0:41:36 > 0:41:38that sounds like a board game or something.
0:41:38 > 0:41:41Well, it's actually the link in the font that causes the magic,
0:41:41 > 0:41:43- so there's a reason.- I know, but I don't know what that means.
0:41:45 > 0:41:47I don't think it's a Dragon investment.
0:41:49 > 0:41:51But good luck. Thank you, I'm out.
0:41:53 > 0:41:57Lee, I think, if a leading educational book publisher wanted
0:41:57 > 0:41:59to do it, they could bypass the font
0:41:59 > 0:42:01and create something with similar content.
0:42:03 > 0:42:07I think it can be copied, so the business potential is a risk.
0:42:09 > 0:42:10And for that reason, I'm out.
0:42:12 > 0:42:16Tej Lalvani decides to write off the opportunity
0:42:16 > 0:42:18to invest in the business.
0:42:18 > 0:42:20Now only Peter Jones remains.
0:42:20 > 0:42:24Having already had a change of opinion about the company,
0:42:24 > 0:42:28could he be about to come full circle and make an offer?
0:42:30 > 0:42:34Lee, I'm not completely convinced you have a business here
0:42:34 > 0:42:37and I think you've got something for yourself...
0:42:37 > 0:42:40Is this not a business because it is scalable and it's sellable
0:42:40 > 0:42:42and there's interest and there's a problem?
0:42:42 > 0:42:44I'm not convinced it is scalable.
0:42:45 > 0:42:49I think you should carry on doing what you are doing, this is great,
0:42:49 > 0:42:51but I'm not going to invest because I don't see it
0:42:51 > 0:42:54as a big business opportunity, or even a medium-sized one,
0:42:54 > 0:42:56so I'm going to say that I'm out.
0:42:57 > 0:42:58Thank you very much.
0:42:59 > 0:43:02Lee is out of investment options,
0:43:02 > 0:43:08and she leaves the Den without the £60,000 she was asking for.
0:43:08 > 0:43:12At the beginning, Peter Jones said I didn't have a business,
0:43:12 > 0:43:15and then he did agree that I DID have a business,
0:43:15 > 0:43:17and then he didn't want to invest in me.
0:43:17 > 0:43:20It's his loss. I will show him that Magic Link will go worldwide,
0:43:20 > 0:43:22and he's going to regret it.
0:43:22 > 0:43:25I think that's a good idea, hiring a salesperson.
0:43:25 > 0:43:27- Yeah.- It was either that or me get a day job with her.
0:43:27 > 0:43:30Yeah. I'll tell you what, she got out of that one!
0:43:37 > 0:43:41Over the years, there have been some rather interesting approaches in
0:43:41 > 0:43:42making an entrance into the Den...
0:43:42 > 0:43:44Goal!
0:43:44 > 0:43:46Arggh!
0:43:48 > 0:43:50..from sending in the heavies...
0:43:52 > 0:43:54..to laying on the glitz and glamour.
0:43:57 > 0:44:00There have been some entertaining introductions...
0:44:00 > 0:44:04- This is Pepper.- ..and innovative ways to catch a Dragon's eye.
0:44:09 > 0:44:10Did that just happen?!
0:44:12 > 0:44:15And last up tonight is a thrill-seeker from Bristol
0:44:15 > 0:44:17who's determined to rev things up a bit.
0:44:22 > 0:44:25Motorsport's very much been a part of my life.
0:44:25 > 0:44:27I mean, there's nothing better than the feeling of speed.
0:44:27 > 0:44:32But will the Dragons want to kick-start his company or be saying,
0:44:32 > 0:44:33"On your bike"?
0:44:34 > 0:44:36It's great to be able to do something that I love
0:44:36 > 0:44:38as a day-to-day job and design a business around it.
0:44:44 > 0:44:48Hello, Dragons. Did you know there are over 200 million motorcycles
0:44:48 > 0:44:50in the world? Of those 200 million,
0:44:50 > 0:44:52over 90% are either chain driven or belt driven.
0:44:53 > 0:44:56Adjusting and chaining a motorcycle is a very time-consuming,
0:44:56 > 0:45:00tedious and frustrating task. It has to be conducted every 200-300 miles.
0:45:00 > 0:45:03It currently requires the rider to get on their hands and knees,
0:45:03 > 0:45:06put a tape measure up against the machine, pressing up and down
0:45:06 > 0:45:08on the chain to try and determine the chain tension.
0:45:08 > 0:45:11My name is Chris Frappell, and I found the solution.
0:45:11 > 0:45:13I am here to present my product Chain Monkey,
0:45:13 > 0:45:16the patented motorcycle chain tensioning tool.
0:45:16 > 0:45:20I'm looking for £75,000 investment for 10% equity in my company.
0:45:21 > 0:45:25The Chain Monkey is applied to the chain, and adjusted upwards
0:45:25 > 0:45:28until the circular stop touches the orange base.
0:45:28 > 0:45:29This induces an arc into the chain,
0:45:29 > 0:45:32which is effectively a predetermined tension, based on the specification
0:45:32 > 0:45:35of the motorcycle. So if there's any slack left in the chain,
0:45:35 > 0:45:38as there is now, you can then adjust the wheel backwards until the slack
0:45:38 > 0:45:41has just been removed. From there, they can remove the Chain Monkey...
0:45:43 > 0:45:45..and they are left with the precise chain tension,
0:45:45 > 0:45:47set first time, every time.
0:45:47 > 0:45:50In the first year, I turned over £169,000.
0:45:50 > 0:45:53Since then, I've extended the range to include lubricants,
0:45:53 > 0:45:57cleaning products, and also a range of other complementary tools
0:45:57 > 0:45:58to the Chain Monkey.
0:45:58 > 0:46:01I thank you for your time and I look forward to any questions.
0:46:01 > 0:46:03And I'm going to hand out some samples.
0:46:03 > 0:46:06Hoping to gain a Dragon pillion passenger
0:46:06 > 0:46:09for his motorcycle chain-tightening business
0:46:09 > 0:46:11is motorsport engineer Chris Frappell.
0:46:11 > 0:46:14That's a lot of walking you're doing there, thank you very much.
0:46:15 > 0:46:19He's willing to hand over 10% of his company in return
0:46:19 > 0:46:21for a £75,000 investment.
0:46:21 > 0:46:23Thanks.
0:46:24 > 0:46:28Deborah Meaden is first to gear up with some questions.
0:46:30 > 0:46:32Chris, I'm not a motorcyclist,
0:46:32 > 0:46:36so I'm going to have to ask you some pretty basic questions.
0:46:36 > 0:46:38I understand the whole tension thing,
0:46:38 > 0:46:41so what's the nearest product to this?
0:46:41 > 0:46:42You know, what else is out there?
0:46:42 > 0:46:45There's been absolutely nothing out there, in all honesty.
0:46:45 > 0:46:48There is nothing that fills this niche in the market at all.
0:46:48 > 0:46:50It's perfect for the everyday rider, the mechanic,
0:46:50 > 0:46:52someone who has a professional career
0:46:52 > 0:46:54and all the way down to someone who is new to motorcycles.
0:46:56 > 0:46:58And is this a patented product?
0:46:58 > 0:47:01It is, yes. I have a granted UK patent.
0:47:01 > 0:47:04I also have a separate European patent pending,
0:47:04 > 0:47:07and then I also have an international patent pending
0:47:07 > 0:47:09for the USA, China, India and Japan as well.
0:47:12 > 0:47:15An entrepreneur with a patent in hand
0:47:15 > 0:47:18is always a welcome visitor to the Den.
0:47:18 > 0:47:20But Tej Lalvani is wondering
0:47:20 > 0:47:24if Chris's biking gizmo is even needed in the first place.
0:47:28 > 0:47:31Chris, most people who own a motorcycle,
0:47:31 > 0:47:34if they've got a loose chain, don't they just go to the...
0:47:34 > 0:47:36..get it serviced and fixed?
0:47:36 > 0:47:39Some do. Erm, whereas, the majority of the market actually prefer
0:47:39 > 0:47:41to carry on any maintenance, themselves.
0:47:41 > 0:47:43Erm, if they do go to have it serviced
0:47:43 > 0:47:46and have the chain adjusted, it costs at least £30 a time.
0:47:46 > 0:47:49And, on average, a rider will get their chain adjusted at least four or five times a year.
0:47:49 > 0:47:53- Which takes about, what? Half an hour, an hour?- Before, yes, it would have taken a long time.
0:47:53 > 0:47:54But, now with the Chain Monkey, no,
0:47:54 > 0:47:56it's literally a 10-15-minute job, maximum.
0:47:56 > 0:47:58And how much does it retail for?
0:47:58 > 0:48:01It's £24.99.
0:48:01 > 0:48:05Chris. I might be the only qualified motorcyclist in the line-up, here.
0:48:05 > 0:48:09So, my last cycle was a Suzuki 650, bright yellow.
0:48:09 > 0:48:10- Oh, really?- So,
0:48:10 > 0:48:14I know that bikers don't take their bikes to the garage to get it fixed,
0:48:14 > 0:48:16they get on their hands and knees and fix it themselves,
0:48:16 > 0:48:19so I know that. So, tell me about the manufacture of these.
0:48:19 > 0:48:21Where do you get supply from? Your manufacturer?
0:48:21 > 0:48:23They are assembled in the UK, currently.
0:48:23 > 0:48:25Erm, however, the orange part is sourced from China.
0:48:25 > 0:48:29A Chinese injection moulding company there.
0:48:29 > 0:48:32OK, so it starts... Some bits start in China, come into the UK,
0:48:32 > 0:48:35and then it's finished off and packaged up and so on.
0:48:35 > 0:48:38Yes, yes. My mother has actually been helping me assemble these
0:48:38 > 0:48:43up until now, and has done extremely well at it, to be honest.
0:48:43 > 0:48:45However, I am now looking to move now to a company
0:48:45 > 0:48:47who will assemble the whole lot for 46p.
0:48:49 > 0:48:52A move to factory production for his product
0:48:52 > 0:48:56will no doubt be welcome news for Mrs Frappell Snr.
0:48:56 > 0:49:01Peter Jones now wants to find out if Chris' motorcycle gadget has given
0:49:01 > 0:49:03rise to a high-performance company.
0:49:06 > 0:49:07How long has this been going -
0:49:07 > 0:49:11- the business?- Erm, I launched the business in August of 2015.
0:49:13 > 0:49:16So, we have done just over a year and a half, now.
0:49:16 > 0:49:19OK, and the last year's turnover was £169,000?
0:49:19 > 0:49:22- It was, yes.- And what is the forecast for this year,
0:49:22 > 0:49:25- currently?- The forecast is roughly the same for this year.
0:49:25 > 0:49:27But, the expansion for next year, with investment,
0:49:27 > 0:49:29is looking to be at 640,000 turnover.
0:49:31 > 0:49:35We are looking for, then, a gross of 480, and a net of 220.
0:49:35 > 0:49:38I've also got a meeting with Halfords,
0:49:38 > 0:49:39to get into 400 shops in one go.
0:49:39 > 0:49:42- And where are you with that?- Erm, it's the second pitch to them,
0:49:42 > 0:49:45actually, in two days' time. They are now interested in the whole
0:49:45 > 0:49:48range of lubricants, cleaning products, and all the other tools.
0:49:48 > 0:49:50We are also looking to extend the brand into the USA,
0:49:50 > 0:49:52and get into a much larger market.
0:49:54 > 0:49:57Chris. You want to go to the States?
0:49:57 > 0:50:01- Yes.- However, you haven't really conquered the UK?
0:50:01 > 0:50:02We were actually approached by the
0:50:02 > 0:50:05second-largest distributor in the USA.
0:50:05 > 0:50:06- Right.- So, they came to us and said,
0:50:06 > 0:50:10"We'd be very interested in putting your product into stores, here."
0:50:10 > 0:50:13So, I didn't want to turn down the opportunity of being able to put it
0:50:13 > 0:50:16into the USA when we had it put forward to us.
0:50:16 > 0:50:19- When did they approach you?- That was about six months ago, now.
0:50:19 > 0:50:21I mean, I would've thought that within six months,
0:50:21 > 0:50:24- you would have sent them samples... - They do have samples, yes.
0:50:24 > 0:50:28Thing is, six months is quite a long time. I'm just a bit concerned
0:50:28 > 0:50:31that you haven't had a real bite within six months.
0:50:31 > 0:50:32The UK market,
0:50:32 > 0:50:36you're there, but not in what I'd call a roll-out basis.
0:50:36 > 0:50:42You've not proven to me that it's a product that's going to grow.
0:50:44 > 0:50:48The entrepreneur's apparent failure to really set the market alight with
0:50:48 > 0:50:52his product is a concern for Touker Suleyman.
0:50:52 > 0:50:56Has Chris' motorcycle business got enough gas in the tank to encourage
0:50:56 > 0:50:59Peter Jones to make an offer?
0:51:01 > 0:51:05Chris, I have to say, I think the product seems pretty neat,
0:51:05 > 0:51:07and you've clearly done a really good job and it definitely does
0:51:07 > 0:51:09what it says on the tin. But, as an investor,
0:51:09 > 0:51:12you've got to have a feeling where you've got a really
0:51:12 > 0:51:14invested interest in motorsport,
0:51:14 > 0:51:19or you see a really big business opportunity that can take off.
0:51:19 > 0:51:20I'm struggling with both.
0:51:23 > 0:51:26So, I'm seeing the opportunity quite as a small, very niche product.
0:51:28 > 0:51:32I don't think you're going to make a lot of money from it.
0:51:36 > 0:51:39So, I'm going to say that I'm out.
0:51:44 > 0:51:49Chris, I'm also concerned about the size of the market.
0:51:50 > 0:51:53And I'm not sure how much value I could add for you.
0:51:55 > 0:51:58So, unfortunately, I won't be investing,
0:51:58 > 0:52:00but I wish you all the best.
0:52:00 > 0:52:02- I'm out.- Thank you very much.
0:52:05 > 0:52:08Two Dragons depart in quick succession.
0:52:08 > 0:52:11Will resident petrol head Jenny Campbell
0:52:11 > 0:52:14break this adverse chain of events?
0:52:15 > 0:52:17Chris, I do know the motorcycling scene,
0:52:17 > 0:52:19and I do resonate with this market.
0:52:21 > 0:52:24So, I can see that this business will do well.
0:52:25 > 0:52:29You're great, you can tell how competent you are.
0:52:29 > 0:52:31So, I buy you, as well.
0:52:36 > 0:52:38I am going to make you an offer.
0:52:40 > 0:52:44My offer to you would be all of the money
0:52:44 > 0:52:46for 20% of the business.
0:52:48 > 0:52:53Jenny Campbell offers to link up with the chain-tightening business,
0:52:53 > 0:52:54and tables a bid.
0:52:55 > 0:52:58But, environmentalist Deborah Meaden
0:52:58 > 0:53:02appears to have spotted something in the entrepreneur's cleaning products
0:53:02 > 0:53:05that threatens to stall her interest.
0:53:05 > 0:53:08The thing I found mildly alarming...
0:53:08 > 0:53:12It's aerosol, and it's quite chemical.
0:53:13 > 0:53:17You look at this list here, and think, "Euuugh"...
0:53:17 > 0:53:20Yes, now, one thing we are looking to do is obviously reduce that.
0:53:20 > 0:53:23We are also looking to having potentially a squeezy can
0:53:23 > 0:53:25and reduce the aerosol completely.
0:53:25 > 0:53:28I would love to be the people who worked on getting it
0:53:28 > 0:53:31- more environmentally friendly. - Yeah, yeah.
0:53:36 > 0:53:39So, I'm going to offer you all of the money.
0:53:39 > 0:53:41I want 25% of the business.
0:53:43 > 0:53:46OK, thank you for your... thank you for your offer.
0:53:46 > 0:53:50With her environmental concerns satisfied,
0:53:50 > 0:53:52Deborah Meaden makes a play for the company.
0:53:53 > 0:53:56Will Touker Suleyman join the Dragon chain gang?
0:53:59 > 0:54:04Chris, could that be used for bicycles?
0:54:04 > 0:54:06It can be, yes.
0:54:06 > 0:54:09The cycle business, I believe, today,
0:54:09 > 0:54:11is probably the biggest sport in the world.
0:54:11 > 0:54:17And, I am involved in the bicycle world through Bikesoup.
0:54:17 > 0:54:20It could well be that we can convince the brands to sell
0:54:20 > 0:54:22one of these along with their bicycles.
0:54:27 > 0:54:29I'm going to make you an offer.
0:54:29 > 0:54:32But, my offer, really, is based upon that I can open more doors for you
0:54:32 > 0:54:34in the cycle world.
0:54:37 > 0:54:40I'll give you all the money, but
0:54:40 > 0:54:41I want 30%.
0:54:44 > 0:54:46Touker Suleyman spots a possible tie-in
0:54:46 > 0:54:50with one of his other businesses and ups the ante in the Den.
0:54:50 > 0:54:53- Do you mind if I take two minutes to have a...- And talk to the wall.
0:54:55 > 0:54:58With three offers in for the chain-tightening tool,
0:54:58 > 0:55:00it's the Dragons who are feeling the tension.
0:55:01 > 0:55:06Jenny Campbell is hoping her passion for bikes will lead to her 20% offer
0:55:06 > 0:55:11being accepted. Deborah Meaden wants more equity at 25%...
0:55:12 > 0:55:16..and Touker Suleyman believes his connection with the bike world
0:55:16 > 0:55:20will justify his more audacious 30% demand.
0:55:22 > 0:55:26Deborah, would there be any movement on your offer of 25%?
0:55:31 > 0:55:33Honestly, Chris, erm...
0:55:36 > 0:55:38Probably not.
0:55:39 > 0:55:42I think I would honestly add that value,
0:55:42 > 0:55:45- so, I'm sorry, Chris, but probably not.- No, that's fair enough.
0:55:47 > 0:55:50Touker, I really do appreciate your offer and I think
0:55:50 > 0:55:53it would be a very good in to the bicycle industry, as well.
0:55:53 > 0:55:56Now, I wondered if there would be any movement from your side at all
0:55:56 > 0:55:58- on that perspective? - This is not a barter game.
0:55:58 > 0:56:02- OK.- I think it's time for you to decide, you know, erm...
0:56:02 > 0:56:06Cos you are going from Deborah to me, and I think the question is,
0:56:06 > 0:56:09is there one Dragon which you really want that can add value,
0:56:09 > 0:56:12or is it just playing games between us?
0:56:12 > 0:56:14I think you've got to decide, Chris, what you really want.
0:56:14 > 0:56:16Well, to be fair, he's got three.
0:56:16 > 0:56:18He's got a 10% spread, I think it's...
0:56:18 > 0:56:21- Ask what questions you need to, Chris.- OK.
0:56:23 > 0:56:26I think, at this moment in time where the business is,
0:56:26 > 0:56:28I don't think I can go to 30% on it.
0:56:28 > 0:56:32Erm... I think, in all honesty, 25% is my absolute limit.
0:56:32 > 0:56:35And, I have to stick to my guns on that respect.
0:56:35 > 0:56:38But, based on that, and based on what each of you can offer...
0:56:39 > 0:56:42Are you... Are you asking me whether I would reduce my offer to 25%?
0:56:42 > 0:56:45He asked you that already, and you said no, Touker.
0:56:45 > 0:56:47That is the question, yeah.
0:56:51 > 0:56:53I would reduce to 25%.
0:56:58 > 0:57:00Touker, I think we've got a deal. I think that would be great.
0:57:00 > 0:57:02- Thank you.- Great.
0:57:02 > 0:57:06- Wow.- Thank you very much.- Well done. - Thank you very much for your time.
0:57:06 > 0:57:11A last-minute climb-down from Touker Suleyman gets him the deal.
0:57:11 > 0:57:14I'm sure we'll conquer this market and the cycle market.
0:57:14 > 0:57:17- That's great. Thank you very much. I appreciate your time.- Great.
0:57:17 > 0:57:21And, the entrepreneur leaves the Den with the £75,000 he was seeking,
0:57:21 > 0:57:23but without his transportation.
0:57:23 > 0:57:26You do know you've left your bike, here, don't you?!
0:57:26 > 0:57:29Oh, I'll get it later. You can have a go, if you want, Peter.
0:57:29 > 0:57:31When Touker decided to reduce his offer,
0:57:31 > 0:57:34I felt it was a bit of a no-brainer, really.
0:57:34 > 0:57:36Are you feeling that it was stolen from you?
0:57:36 > 0:57:40- Yeah.- Sorry, Deborah. - No, that...
0:57:40 > 0:57:43- We win some, we lose some, Touker. - Exactly. I've said the same myself.
0:57:43 > 0:57:45I think I could see you in leathers, as well, Touker.
0:57:45 > 0:57:48I don't think I'm going to be in leathers, no.
0:57:53 > 0:57:56Business is often about compromise.
0:57:56 > 0:58:00Earlier, we saw Rimi stick to her guns but fail to get an investment,
0:58:00 > 0:58:04while Chris did negotiate and secured a deal.
0:58:04 > 0:58:07Touker Suleyman, too, had to shift his position,
0:58:07 > 0:58:11proving that even Dragons have to have a bit of give and take
0:58:11 > 0:58:12to get what they want.
0:58:13 > 0:58:16I looked at you all, and I thought, you all look perfectly sane.
0:58:16 > 0:58:19- Coming up next time... - You can't do that, guys.
0:58:19 > 0:58:22You are in here for investment. You are not here for advice.
0:58:22 > 0:58:25I am not going to help you propel a product that's not proven.
0:58:25 > 0:58:27It's a small business.
0:58:27 > 0:58:28- Tiny.- Really?
0:58:30 > 0:58:32You've made a mistake.
0:58:32 > 0:58:34When were you going to raise the extra money to build all this?
0:58:34 > 0:58:36I've no idea. Don't know.
0:58:38 > 0:58:40Before you make a decision,
0:58:40 > 0:58:42I'm thinking of revising my offer.
0:58:42 > 0:58:45- I really like it.- You are very bubbly and engaging.
0:58:45 > 0:58:48You are a very investable entrepreneur.
0:58:48 > 0:58:50- 1%.- Yes.- 1%.
0:58:50 > 0:58:52Yes, 1%.
0:58:52 > 0:58:54I don't get out of bed for 1%.