Key Points:
- Investment: None
- Investor: N/A
- Equity Offered: 20%
- Business: Igloo Disco (pop-up party venues)
- Target Audience: Primarily 18th birthday parties, but generally event organizers looking for unique party experiences.
- Challenges: Demonstrating profitability, cash flow management, convincing investors of the business's scalability.
The Pitch
Danny Savage, the entrepreneur behind Igloo Disco, entered the Dragons' Den seeking an £80,000 investment for a 20% equity stake in his business. Igloo Disco specializes in creating unique pop-up party experiences using inflatable igloos, targeting a niche market that includes 18th birthday parties. Danny highlighted his extensive experience in the events industry, including his background as a club promoter, DJ, and festival organizer. He emphasized that Igloo Disco provides a turnkey solution for memorable events, saving clients time, money, and stress.
Financials and Offer
In its first year, Igloo Disco turned over £80,000 with a net profit of £31,000. The second year saw a significant increase in revenue to £208,000, but the net profit dropped to £3,000. Danny attributed this to reinvestment in the business, including marketing efforts and expanding the team. He explained that with the right investment, Igloo Disco could further solidify its market presence and scale its operations.
Challenges Highlighted by the Dragons
Profitability and Cash Flow:
Peter Jones and Tuka Suleiman questioned the business's profitability and cash flow management. Despite Danny's optimism and recent deals, the dragons were concerned about the low net profit and cash reserves. They pointed out the importance of having enough cash flow to manage future events without financial strain.
Market Differentiation:
Nick Jenkins and Sarah Willingham were skeptical about the uniqueness of Igloo Disco's offering. They noted that while the concept was appealing, similar products were readily available, and the market trend could shift, diminishing the business's novelty.
Investment Readiness:
Sarah Willingham appreciated Danny's passion and the progress made so far but felt that Igloo Disco was still in an early phase. She suggested that the business needed to grow further and stabilize before it would be a suitable investment opportunity.
Conclusion
Despite a spirited pitch and clear passion for his business, Danny Savage left the Dragons' Den without securing the £80,000 investment he sought. The dragons acknowledged his creativity and drive but were ultimately unconvinced about the current scalability and profitability of Igloo Disco. They encouraged him to continue building his business and revisit investment opportunities once he had demonstrated a more robust financial performance and market differentiation. Danny remains determined to push forward and make Igloo Disco a success, embodying the entrepreneurial spirit that drives him.