Key Points:
- Investment Sought: £80,000
- Investor: None
- Equity Offered: 20%
- Business: BedStretch Limited
- Target Audience: Individuals over six feet tall, particularly targeting the hospitality industry.
- Challenges: Market awareness, convincing hotels of product necessity, and high investor equity requirements.
The Pitch
Chris and Martin Andrew of BedStretch Limited presented their patented "pillar shelf" bed extender designed to provide additional bed length for taller individuals. They demonstrated the product's utility with Peter Jones, the tallest Dragon, showcasing how the device could extend a standard bed to accommodate his height.
Financials and Offer
BedStretch has been trading for three years, selling approximately 120 units annually. They have made some sales to hotels, but overall market penetration remains low. The entrepreneurs asked for £80,000 in exchange for a 20% stake in their company.
Challenges Highlighted by the Dragons
The Dragons expressed concerns about the product's market visibility and practical implementation in the hotel industry. They questioned the scalability of walking into hotels with a physical product for demonstrations, and the general market need for such a niche product. Peter Jones noted the product’s specific utility but criticized the business strategy for lacking a broader market appeal and efficient go-to-market approach.
Conclusion
Despite the clear utility of BedStretch's product for tall individuals, the pitch ultimately did not result in investment. The Dragons were hesitant due to concerns about market size, customer acquisition strategy, and the high equity stake required. Chris and Martin left the den without a deal, encouraged by Peter Jones to refine their market strategy and continue their efforts independently.