Key Points:
- Investment: £60,000
- Investor: Peter Jones and Stephen Bartlett
- Equity Offered: 20% combined (12.5% each, reduced to 10% each if investment is recouped within 18 months)
- Business: Botanical, a plant-based supplement brand
- Target Audience: Individuals with skin and hair concerns, primarily women
- Challenges: Market differentiation, financial instability, and intense competition
Deal Summary
A significant deal was secured for Botanical, a plant-based supplement brand founded by Caroline Sims, on the latest episode of Dragons' Den. The brand received an investment of £60,000 from Peter Jones and Stephen Bartlett, who took a combined equity of 20%, split equally. This equity will reduce to 10% each if they recoup their investment within 18 months.
The Pitch
Caroline Sims, the entrepreneur behind Botanical, faced her nerves head-on to deliver a compelling pitch. She shared her personal struggle with bad skin and how it led her to develop the Skin Clear Elixir, a product designed to address hormonal imbalances that cause skin issues. With a UK patent and retail listings at major stores like Holland & Barrett and Superdrug, Caroline has already generated over £800,000 in sales since the brand's launch in 2018.
Business Overview
- Business Model: Botanical offers plant-based supplements targeting skin and hair health, aiming to provide natural solutions to hormonal imbalances. The flagship product, Skin Clear Elixir, is distinguished by its unique formula, which includes patented ingredients like saw palmetto berries and coconut oil.
- Achievements: Botanical has secured key retail listings and generated substantial sales. Caroline's strategy focuses on expanding the product line and enhancing direct-to-consumer sales through digital marketing.
Investor Interest
Caroline's clear USP, patent protection, and personal story captured the interest of multiple Dragons. Despite some concerns about financial stability and market competition, the pitch's authenticity and potential for growth led to four offers.
Negotiation and Final Deal
Caroline successfully negotiated with Peter Jones and Stephen Bartlett, securing a combined investment with an initial 20% equity stake, which would reduce if the investment was repaid within 18 months. This strategic partnership is set to leverage Peter's retail connections and Stephen's digital marketing expertise, promising a robust growth trajectory for Botanical.
Conclusion
Caroline Sims overcame her fears and secured a transformative deal for Botanical, leaving the Den with a significant investment and strategic support from two of the most influential Dragons. This deal not only boosts her business but also her confidence, marking a major milestone in her entrepreneurial journey.