Key Points:
- Investment: £80,000
- Investor: Peter Jones
- Equity Offered: Originally 2%, negotiated to 10% with a conditional drop to 5%
- Business: Bottleshot Coffee - Cold brew coffees in ready-to-drink cans
- Target Audience: European market, particularly those looking for convenient and healthier coffee options
- Challenges: High valuation, taste preferences, and initial investor skepticism
Blog Post Summary:
Deal Made with Dragon Peter Jones for £80,000!
In a thrilling episode of "Dragons' Den," Annie Mitchell, founder of Bottleshot Coffee, pitched her unique cold brew coffee in ready-to-drink cans, securing a significant investment from Peter Jones. Let's dive into the details of her pitch, the challenges she faced, and how she brewed her way to success.
The Pitch, Financials and Offer
Annie entered the Den seeking £80,000 in exchange for 2% equity in Bottleshot Coffee. Her company offers a solution to the overly sugared and artificial flavor-laden canned coffees saturating the market. With a brewing process that emphasizes authenticity and flavor, Bottleshot Coffee has become a favorite in the U.S., and Annie is ready to capture the European market.
Financially, the company has shown promising growth, with £95,000 in revenue last year and a notable £25,000 in the past month alone. Despite a current loss of £200,000, the trajectory suggests a bright future, supported by prior successful fundraises totaling over a million pounds.
Challenges Highlighted by the Dragons
The Dragons were initially hesitant, with concerns ranging from the product's taste—perceived as watery by some—to its ambitious £4 million valuation. Skepticism was also voiced about the company's strategic direction, particularly its focus on retail versus direct-to-consumer sales.
Annie defended her valuation and strategy vigorously, citing successful market tests and her team's robust expertise in coffee and beverage distribution. However, her justification of the high valuation and her strategic plans did not resonate with all the Dragons, leading to several opting out of the deal.
Conclusion
Ultimately, Peter Jones saw potential in Annie's vision and offered £80,000 for a 10% stake, with a conditional drop to 5% if his investment is returned within a year. This deal reflects a significant shift from the initial 2% equity offered but secures a partnership with a Dragon who has extensive experience in scaling retail products.
Annie's journey in the Den showcases the importance of resilience and adaptability in entrepreneurship. Despite facing several rejections and critiques, her ability to secure a deal with her preferred investor underscores her commitment and belief in her product. With Peter Jones's backing, Bottleshot Coffee is well on its way to becoming a staple in the European coffee scene.
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