Key Points
Investment: £40,000
Investor: Peter Jones and Tuka Suleiman
Equity Offered: 20%
Business: Pop-up chess sets and other pop-up board games
Target Audience: All ages, travel-friendly games
Challenges: Convincing investors of business scalability and potential market reach
The Pitch
David Horcock, a seasoned paper engineer known for his work in movies like Paddington 2 and Mary Poppins Returns, presented his unique product: a pop-up chess set. The innovative design of the chess set allows it to open and close in any position without disturbing the pieces, making it an ideal travel set and easy to store. The product is made entirely of paper and card, ensuring it is recyclable and eco-friendly. David sought £40,000 for 20% equity in his company to expand his line of pop-up board games.
Financials and Offer
David's current business, which includes his work on high-profile projects, has an annual turnover of approximately £200,000. He emphasized his capability in both product development and manufacturing. After initial hesitation, David's pitch garnered significant interest. Peter Jones and Tuka Suleiman offered the full £40,000 for 20% equity, provided David combined his new venture with his existing company. Deborah Meaden and Sarah Davies also made competitive offers, with Sarah suggesting a lower equity stake of 15% for only the new venture.
Challenges Highlighted by the Dragons
The dragons recognized the brilliance of David's product but questioned the scalability of his business. Stephen Bartlett expressed doubts about the transition from a great product to a great business, highlighting the need for business acumen and strategic growth. The dragons debated the merits of combining David's existing company with the new venture, ultimately agreeing that a unified business would streamline operations and growth potential.
Conclusion
David Horcock successfully secured the investment he sought, choosing to partner with Peter Jones and Tuka Suleiman. The deal was closed at £40,000 for 20% equity, with a plan to integrate his existing and new businesses gradually. David left the den confident in his choice, appreciating the market reach and strategic support that Peter and Tuka offered. Despite multiple offers, David's decision to go with two experienced investors underscored his commitment to not only expanding his product line but also scaling his business effectively.