Key Points:
Investment: £50,000
Investor: None
Equity Offered: 5%
Business: Biscuit Tin, a digital platform for end-of-life planning
Target Audience: Individuals and families planning end-of-life affairs
Challenges: Competition from established tech companies, high operational costs, and market adoption
The Pitch
Sheila Hogan, the founder of Biscuit Tin, stepped into the Dragons' Den seeking an investment of £50,000 in exchange for a 5% equity stake in her tech startup. Born out of personal experience, Biscuit Tin aims to simplify end-of-life planning by offering a secure digital vault where individuals can store their accounts, wishes, memories, and more, to be released to nominated parties upon their death.
Sheila's passionate pitch highlighted the emotional and practical challenges she faced while managing her parents' affairs, emphasizing the need for a streamlined digital solution. Her vision is to partner with life insurance companies, mortgage providers, and funeral planners to integrate Biscuiting into broader end-of-life planning processes.
Financials and Offer
Sheila projected a significant user growth with 1,500 users in the first year, generating £65,000 in revenue but incurring a loss of £620,000. By the second year, she anticipated revenue to soar to £1.5 million from 40,000 customers, though still operating at a loss of £1 million. The total capital requirement over the next two years was estimated at £1.62 million, with plans to raise £300,000 immediately and a further £1 million the following year, offering a total of 60% equity for these investments.
Challenges Highlighted by the Dragons
Despite the emotional appeal and clear need for such a service, the Dragons expressed several concerns:
- Market Competition: Peter Jones and Stephen Bartlett noted the presence of established tech solutions like Dropbox and Google Drive, questioning the unique value proposition of Biscuiting.
- Tech Expertise: Stephen Bartlett doubted Sheila's capability to build and scale a tech company, given her background in business analysis rather than in-depth tech development.
- Financial Viability: Sarah Davies and Peter Jones were concerned about the projected losses and the high dilution of equity for initial investors, making it a high-risk investment with uncertain returns.
- Operational Costs: Deborah Meaden highlighted the potential for escalating costs and consumer acquisition challenges, stressing that the business model might require more investment than anticipated.
Conclusion
While Sheila Hogan left the den without securing an investment, she remained undeterred, confident in her ability to build and grow Biscuit Tin. The Dragons acknowledged the emotional resonance and practical need for her service but were ultimately dissuaded by the financial and competitive risks involved. Sheila's journey highlights the importance of not only a compelling personal story but also the need for robust financial planning and a clear competitive edge in the tech industry. Despite the setbacks, Sheila's determination and vision may well prove the Dragons wrong in the long run.