Key Points:
- Investment: £100,000
- Investor: Stephen Bartlett
- Equity Offered: 10% (originally asked for 2%)
- Business: Just Lend, a tech platform facilitating loans among friends and family
- Target Audience: Individuals who borrow or lend money within their personal networks
- Challenges: High valuation concerns, technical details unclear, brand name issues, lack of patent specifics
The Pitch
Craig Smith, founder and CEO of Just Lend, entered the den seeking a £100,000 investment for 2% equity in his company, valuing Just Lend at £5 million. His business, a high-tech solution to interpersonal lending, aims to simplify and secure the process of borrowing money from friends and family by offering tools like loan agreements and payment tracking systems.
Financials and Offer
Just Lend charges a 5% platform fee and a 0.1% servicing fee. With the business still pre-revenue, Craig projected a turnover of £1.6 million and a profit of £260,000 by November 2024. Despite his high valuation, he ultimately secured an investment from Stephen Bartlett who offered £100,000 for 10% equity, significantly more than the initially offered 2%.
Challenges Highlighted by the Dragons
The Dragons were skeptical about the £5 million valuation and questioned the uniqueness and patentability of Just Lend's technology. Concerns were also raised about Craig's lack of technical details and the potential confusion around the brand name, as Just Lend did not own the .com domain. The Dragons criticized Craig for not being prepared with answers to critical questions regarding the technical and business aspects of his platform.
Conclusion
Despite a challenging pitch session where many Dragons expressed doubts about the feasibility and valuation of Just Lend, Craig managed to secure an investment from Stephen Bartlett. This investment could provide the necessary capital and strategic support to navigate the early stages of the business, emphasizing the potential of Just Lend in a market where personal lending is common but fraught with complications.