In the competitive world of entrepreneurship, pitching for investment can be a make or break opportunity for a business to not only secure funding, but also gain valuable exposure and credibility. And one of the most well-known platforms for entrepreneurs to pitch their businesses is Dragons’ Den, where aspiring entrepreneurs face a panel of investors and are put to the test to prove their worth on future valuation. In this blog post, we’ll explore the ins and outs of pitching for investment on Dragons’ Den and the key factors that determine success or failure in front of the dragons.
Pitching for Investment: Dragons’ Den Asks Entrepreneurs to Prove Their Worth on Future Valuation
Investment in a start-up is not the easiest thing to achieve. Even the best business idea or product may fail without financial support, and convincing investors to invest in your idea requires a great deal of effort. This is where the popular UK reality TV show “Dragons’ Den” steps in to offer a platform for entrepreneurs to pitch their ideas and convince a panel of investors, known as the dragons, to invest in their businesses. In this article, we will discuss the pitch made by two entrepreneurs, Dan Wiseman and Joe Mills, and take a closer look at the Dragons’ Den investors’ questions about their business plan.
Introduction
Dan and Joe are the creators of the award-winning mystery puzzle game, the Detective Society, which combines physical components with digital elements. The game creates a fully immersive world for players, and the entrepreneurs have come to Dragons’ Den to seek an investment of 75,000 pounds in exchange for 7.5% of their business. Their aim is to use the investment to support future growth and accelerate the product’s development path.
Two entrepreneurs pitch their innovative game to the dragons
Dan and Joe pitch their product with enthusiasm, showcasing the unique features of the game that set it apart from other board games. The game is sold for 30-35 pounds per box, and the entrepreneurs project a three-year plan to turn over 5 million pounds with 2 million pounds in gross profit and 600,000 pounds in net profit by year three.
Dragon’s Questioning
The dragons are eager to know more about the profitability of the game. In response, Dan and Joe share their first year accounts of a turnover of 167,000 pounds and net profit of 28,000 pounds. The dragons ask about ownership structure, projected future growth, and return on investment. Peter Jones questions the long-term potential and exit strategy for the business, while Stephen Bartlett expresses interest.
Comparison with physical escape rooms offering comparable value for money experience
The entrepreneurs compare their game to physical escape rooms, but with added online elements. They argue that their product offers comparable value for money compared to escape rooms. The combination of digital and physical elements in the game make it unique and immersive, with the potential for more varied experiences with new game themes.
Future goals for the business
Dan and Joe believe in the long-term potential of their product, and their future projections support their beliefs. They hope to be turning over 500,000 pounds with a net profit of 66,000 pounds in the coming year. The entrepreneurs see the potential for their business to be sold to a larger company like Hasbro in the future.
Conclusion
Investing in a start-up is a risk, and the dragons need to be convinced about the potential return on investment. Dan and Joe succeed in convincing the dragons with their well-thought-out business plan, their projection for future growth, and the unique features of their product. Their innovation, creativity, and passion resulted in securing an investment for the continued development of their product. The Dragons’ Den is the perfect platform for entrepreneurs with innovative ideas to pitch their business and seek investment to push their business to the next level.
FAQs ###
- What makes Dragon’s Den different from other investment shows?
- Why did Dan and Joe choose to pitch their idea on Dragon’s Den?
- What is the Detective Society, and how much does it cost?
- What were Dan and Joe’s first-year accounts in terms of turnover and net profit?
- Where do Dan and Joe see their business potentially going in the future?
