Key Points:
Investment: £80,000
Investor: No deal
Equity Offered: 10%
Business: Matey Measure, a tape measure accessory
Target Audience: DIY enthusiasts and professionals
Challenges: High valuation, online sales difficulties, patent issues
You've Invented A Paperclip for A Tape Measure: Dragons' Den
The Pitch
Steve Capon and Mark Scheele entered the Dragons' Den to pitch Matey Measure, an innovative tape measure accessory designed to improve measurement accuracy, especially around corners. Seeking £80,000 for a 10% equity stake, they emphasized their product's ability to eliminate guesswork and improve efficiency in measuring tasks. Steve, a builder with 30 years of experience, and Mark, the chairman and financial expert, showcased the product's practicality and potential market appeal.
Financials and Offer
The product, launched in February 2020, had a challenging start due to COVID-19, which affected their factory operations. Despite these hurdles, they managed to sell 17,000 units, generating a turnover of £82,000 with a gross profit figure unclear due to initial investment costs. Their current total loss stands at £24,000. Despite this, they valued their business at £800,000, primarily based on their patent and potential market growth.
Challenges Highlighted by the Dragons
The dragons raised several concerns during the pitch:
- Valuation Concerns: Tuka Suleiman criticized the high valuation, suggesting it was unrealistic given the current financial performance.
- Market Potential: Debra Meaden appreciated the product but doubted its mass market appeal, suggesting it might struggle to achieve significant online sales without substantial marketing efforts.
- Online Sales Strategy: Despite claims of successful online sales through influencers, the dragons remained skeptical about the broader online market traction.
- Profitability: The company’s inability to turn a profit so far and the reliance on patent value were seen as significant risks.
Conclusion
Ultimately, all five dragons decided not to invest. Tuka Suleiman was unconvinced by the valuation and future profitability, Debra Meaden and the others doubted the mass market appeal and online sales potential, and Stephen Bartlett felt the product lacked sufficient traction after three years in the market.
Despite leaving the Den without a deal, Steve and Mark remain optimistic about Matey Measure’s future, planning to refine their approach and continue growing their business independently.