Dragons’ Den has been a platform where entrepreneurs showcase their innovative ideas and business ventures in hopes of securing investment from the seasoned panel of investors, known as the Dragons.
Over the years, there have been numerous memorable pitches that have not only captured the attention of the Dragons but also resulted in significant success for the entrepreneurs.
In this article, we will explore some of the most successful pitches on Dragons’ Den, delving into the captivating stories behind these entrepreneurs and their remarkable achievements.
Without wasting any time, let us begin with the learning.
Index:
Wonderbly:
Wonderbly, formerly known as ‘Lost My Name,’ is a company specializing in personalized illustrated books, with a primary focus on toddlers as their main target audience.
During their appearance on the television show Dragons’ Den, Asi Sharabi, and David Cadji-Newby showcased their books, including ‘The Girl Who Lost Her Name’ and ‘The Boy Who Lost His Name.’
They demonstrated the process of ordering personalized books through their website. Initially, Dragon Peter Jones showed disinterest due to the content being geared towards children. However, when presented with a sample book featuring his children’s names, he realized his initial misjudgment.
Out of all the Dragons, Piers Linney was the only one to make an offer. He acquired 4% equity under the same terms as the pre-invested venture capitalists, along with an additional 1% of advisory shares.
By the year 2021, Wonderbly had successfully sold 2 million books, generating revenue exceeding £30 million. Notably, 85% of this revenue came from international markets.
The company achieved an impressive gross profit margin of 66% during this period. Furthermore, Wonderbly was acquired by the private equity firm Graphite Capital in the same year.
Chocbox:
Chocbox, owned and marketed by Electro Expo LTD, is a connecting tool, commonly known as a junction box, used for electrical wires. It features a plastic body that encloses screw connectors, ensuring secure and safe wire connections.
During their pitch on Dragons’ Den, James Caan and Duncan Bannatyne made an offer of £150,000 in exchange for a 45% stake in the business. After negotiations, Peter agreed to the offer of £150,000 for 36% equity, with a conditional reduction to 30%. Interestingly, Peter came to the Den seeking to hire Dragons rather than secure financial investment.
Following the airing of the episode, Chocbox received a significant order worth £25 million. Since then, the product has been made available in 152 countries and has achieved millions in sales. According to the company’s sales targets, its revenue appears to exceed £100 million.
Reggae Reggae Sauce:
Reggae Reggae Sauce is a jerk barbeque sauce founded by musician Levi Roots. During his pitch on Dragons’ Den, Levi captivated the Dragons with a melodious song, bringing a smile to their faces.
He quickly presented the details of his product and revealed a massive order of 16 million from a meat company in Yorkshire, which left the Dragons in awe.
Richard and Peter invested £50,000 in exchange for a 40% stake in the company.
As of today, Reggae Reggae Sauce is estimated to be worth over £30 million, making it one of the most successful products to have appeared on Dragons’ Den. Peter Jones remains a shareholder and active promoter of the product.
Tech 21:
Tech21 is an electronic accessory manufacturing company established in 2005. The company specializes in impact protective solutions for electronic devices, introducing a new scientific approach to impact protection, resulting in thinner and more ergonomic designs.
During his pitch in the Den, Jason showcased various innovations, including the eye-catching D3O technology. The Dragons were impressed, but they questioned Jason about sales figures and the seemingly high valuation. Some numbers slipped Jason’s mind, which could have become a deal-breaker. However, he revealed a sales contract worth approximately one million pounds with Apple.
Following this revelation, offers began pouring in. Jason chose the equity-focused deal offered by Theo and Peter, despite a potentially better offer from Deborah Meaden. As of 2023, Tech21 has evolved into a medium-sized corporate in the electronic accessories segment.
The company has firm orders from well-established hardware manufacturers in Silicon Valley, and its future outlook appears promising. While official data to verify the valuation is not available, Tech21 is estimated to be worth slightly over £21 million.
GripIt:
GripIt is a tool owned by GripIt Fixings LTD, designed to fix heavy objects on plasterboard. The product has applications in both the D2C (direct-to-consumer) and B2B (business-to-business) segments.
During the pitch, Deborah made an offer of £80,000 in exchange for 30% equity in the company. After further negotiations, Jordan and Deborah closed the deal at £80,000 for 25% equity, making Jordan the youngest entrepreneur to secure an investment on Dragons’ Den.
According to the company’s tax filings, GripIt had negligible revenue until 2012 when it secured orders from national vendors. However, after appearing on Dragons’ Den, GripIt experienced a 600% increase in revenue post-2014, setting the company on a successful path.
The net worth of GripIt reached £22.5 million in January 2019. Although Jordan abruptly left the company or was forced to leave, GripIt overcame financial challenges and is currently estimated to be worth £14 million as of 2023.
Hungryhouse:
Hungryhouse, founded in 2006, was one of the UK’s first online food delivery services. It charged a small service fee from its customers and received a commission from restaurant partners to generate income for the company.
During their appearance on Dragons’ Den, the founders of Hungryhouse presented an offer to the Dragons that valued the company at over £900,000. However, the Dragons valued the company at only £200,000, leading to the deal falling apart.
Despite facing significant losses, Hungryhouse’s valuation continued to grow, and in 2018, it was acquired by JustEat for a staggering £200 million.
Worthenshaws’ (now Kirstys’):
Worthenshaws‘, which has been rebranded as Kirstys’, is a Harrogate-based company that initially manufactured and marketed frozen desserts. However, founder Kirsty Henshaw made a strategic shift to the production and marketing of frozen foods.
During her pitch on Dragons’ Den, Kirsty impressed the Dragons with her extensive knowledge of the product and accurate sales estimates. She received three offers from the Dragons, and indirectly asked Peter and Duncan to enter the business together by taking additional equity. The Dragons accepted her request, and Kirsty left the Den with a successful deal.
After focusing on frozen foods, Kirstys’ experienced a significant increase in revenue, boosting its net worth to £15 million in 2022. The company now aims to expand into international markets to further enhance its sales.
Oppo Ice Cream:
Oppo Ice Cream is an ice cream company that was founded in 2013. They market a special kind of ice cream made from fresh meadow-grazed cow’s milk, stevia leaf, and coconut oil, with a fraction of the calories and sugar found in regular ice cream.
During their pitch on Dragons’ Den, the brothers behind Oppo Ice Cream provided a comprehensive demonstration of their flavors and presented promising financial data. However, the intense competition in the ice cream market deterred the Dragons from investing in the company.
Since then, Oppo Ice Cream has experienced remarkable growth, with a reported worth of at least £86 million and consistently increasing revenue and profit margins. The Dragons missed out on a significant opportunity by not investing in the business.
Look After My Bills:
Look After My Bills is an auto-switching bill payment service for utilities such as electricity, broadband, mobile phones, credit cards, and travel. It offers an app-based solution that automatically finds and switches to the best deals for its customers.
During their pitch on Dragons’ Den, the founders of Look After My Bills displayed their shrewd negotiating skills and stood firm on their £6 million valuation, which led to the exit of three Dragons. Tej and Jenny made a counteroffer, which the founders eventually accepted. Their business tactics impressed the Dragons and left a positive impression.
Just a year later, Look After My Bills was acquired by GoCo Group at a valuation of £8.5 million. Based on revenue estimates, the company is now worth over £17 million as of 2023.
Appy Parking (now AppyWay):
Appy Parking, now known as AppyWay, is a British parking service that provides an app-based solution displaying on and off-road parking options in multiple cities in the UK. It offers a subscription-based service for businesses and a separate solution for government authorities.
During their pitch on Dragons’ Den, the founder of Appy Parking attracted the interest of Peter Jones. Nick Jenkins and Peter made a combined offer of £200,000 for a 20% stake in the company. However, the offer was not accepted, and the entrepreneur walked out of the Den with confidence.
Appy Parking experienced significant growth in its user base after the episode aired, known as the “Dragon’s Den effect.” The company also expanded its presence in the B2B segment. The decision to walk away from the Den and reject low-ball offers seems to have paid off.
In July 2019, AppyParking closed a Series A round of investment worth £7.6 million from investors including Hyundai Motor Company and Sumitomo Corporation. The company has raised a total of £11 million as of 2019 and is currently valued at £50 million after its 2019 funding round.
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FAQs:
What product in the Den gave returns at the earliest?
Following the airing of the episode, Chocbox received a significant order worth £25 million. Since then, the product has been made available in 152 countries and has achieved millions in sales. According to the company’s sales targets, its revenue appears to exceed £100 million.
Which Dragons' Den reject turned out to be most successful?
Since then, Oppo Ice Cream has experienced remarkable growth, with a reported worth of at least £86 million and consistently increasing revenue and profit margins. The Dragons missed out on a significant opportunity by not investing in the business.
