Key Points:
- Investment: £75,000
- Investor: Peter Jones
- Equity Offered: 20% (with a reduction to 15% once £100,000 is returned within 18 months)
- Business: Pure Heavenly Limited
- Target Audience: Health-conscious consumers, particularly those with dietary restrictions
- Challenges: Market competition, product scaling, and establishing retail partnerships
Dragons' Den: Pure Heavenly Chocolate Secures £75,000 Investment
Stephen Conway, founder of Pure Heavenly Limited, successfully secured a £75,000 investment from Peter Jones on Dragons' Den, in exchange for a 20% equity stake, with a reduction to 15% once the initial investment is returned within 18 months.
Introduction
Pure Heavenly Limited, a company dedicated to producing healthier chocolate alternatives, captivated the Dragons with its unique product line. Founder Stephen Conway's compelling pitch and passion for his brand led to a fruitful investment agreement, promising a bright future for the business.
The Pitch
Stephen Conway introduced Pure Heavenly Limited by sharing his motivation to create a healthier chocolate option for his family, particularly his daughters, who faced food intolerances. He developed a chocolate recipe that is dairy-free, soy-free, gluten-free, palm oil-free, and contains less than 4% sugar compared to the 56% found in leading chocolate brands. Despite facing initial setbacks, Pure Heavenly achieved a turnover of £500,000 in its first year, solely through online sales.
The Offer
Stephen sought £75,000 for 7.5% equity in his company. The Dragons were impressed by the product's quality and market potential, but most offers came with a demand for higher equity. Peter Jones, captivated by the taste and potential of the chocolate, offered the full amount for 20% equity. This offer included a provision to reduce his stake to 15% once he recouped £100,000 within 18 months, aligning his interests with the company's growth.
Negotiation and Final Deal
Stephen skillfully navigated the negotiation, recognizing the strategic value Peter Jones could bring. He accepted Peter's offer, securing not just the financial investment but also the mentorship and business acumen of a seasoned Dragon.
Conclusion
Pure Heavenly Limited's deal with Peter Jones marks a significant milestone for the brand. With this investment, Stephen Conway aims to scale production, enter retail markets, and expand globally. The partnership with Peter Jones is set to drive Pure Heavenly to new heights, offering consumers a delicious and healthier chocolate alternative. Stephen's journey on Dragons' Den exemplifies the impact of passion, innovation, and strategic partnership in the entrepreneurial world.