Key Points:
- Investment Sought: £50,000
- Investor: No deal was made
- Equity Offered: 5%
- Business: Easy-treesie, a Christmas tree stand company
- Target Audience: Christmas tree buyers looking for an easier way to set up their trees
- Challenges: Seasonality of the product, lack of trust in business acumen and financial planning, uncompleted tooling for production
The Pitch
Ryan Wach, an employee of the Walt Disney Company and an "Imagineer," stepped into the den dressed as Father Christmas to pitch his business, Easy-treesie. His product, a drop-in Christmas tree stand, promises to simplify the tree-setting process, allowing a single person to install a tree in just seconds. Ryan's pitch aimed to capture the festive spirit of the dragons, showcasing the functionality and ease of his product in a live demonstration.
Financials and Offer
Ryan requested £50,000 for a 5% stake in his company, which valued his business at £1 million. He projected first-year sales of 10,000 units based on his analysis of the Christmas tree stand market in the U.S., Canada, and Europe. However, his financial assumptions and the absence of any actual sales data or discussions with retailers raised concerns among the dragons.
Challenges Highlighted by the Dragons
The dragons expressed several concerns during the pitch:
- Seasonality: The business model heavily relies on the Christmas season, which could limit cash flow during the rest of the year.
- Market Assumptions: Ryan's market penetration estimates and sales projections were questioned due to lack of empirical data.
- Operational Readiness: The tooling required for production was not yet completed, despite significant financial investment, which signaled potential mismanagement.
- Business Valuation: The dragons were skeptical about the £1 million valuation without a proven track record or sales.
Conclusion
Despite Ryan's engaging presentation and the innovative design of his Christmas tree stand, he failed to secure an investment from any of the dragons. The primary stumbling blocks were the high seasonality of the product, unconvincing financial projections, and operational challenges. Ryan left the den without a deal, carrying valuable feedback but no financial backing. The pitch served as a stark reminder of the importance of preparation, realistic business valuation, and having a clear plan to overcome seasonal market limitations.