Key Points:
Investment: £200,000
Investor: Peter Jones
Equity Offered: 5% (initially requested)
Business: The Potions Cauldron (Wizard-themed crazy golf and potion drinks)
Target Audience: Families, tourists, and magic enthusiasts
Challenges: Convincing investors of the business's profitability and long-term potential
Wizard Golf Empire Fails to Secure Investment on Dragons' Den
Ben Fry and Phil Pinder, founders of The Potions Cauldron, entered the Dragons' Den seeking a £200,000 investment for 5% equity in their wizard-themed business. Despite an enthusiastic presentation featuring their magical mascot, Grobbelnuk the Gargoyle, and impressive growth numbers, they left the Den without a deal.
The Pitch
Ben and Phil's business includes The Hole in Wand wizard-themed crazy golf courses, The Potions Cauldron apothecary in York, and a wholesale potion drinks operation. Their primary aim was to use the investment to expand their wizard golf empire, opening a new venue in Edinburgh to join existing locations in York and Blackpool.
Business Breakdown
- Turnover: £1.4 million (last year)
- Revenue Sources: Wizard golf courses, potion apothecary, and wholesale potion drinks
- Profit Distribution:
- Wizard golf in York: £350,000
- Apothecary: £100,000
- Wholesale: £20,000
Despite these figures, the Dragons questioned the overall profitability and financial management, pointing out discrepancies and potential losses in parts of the business.
Dragons' Reactions
- Steven Bartlett: Expressed concerns about the business's long-term viability and scalability, deciding to opt-out.
- Deborah Meaden: Acknowledged the duo's achievements but highlighted the worrying financial losses in other business areas, leading her to decline the investment.
- Peter Jones: Initially skeptical, Peter was impressed by the profitability of the York location but ultimately proposed £200,000 for 33% equity, a significantly higher stake than the founders were willing to offer.
- Touker Suleyman and Sara Davies: Both praised the concept but doubted the entrepreneurs' ability to manage and scale the business effectively, resulting in their decisions to pass on the deal.
Final Offer and Outcome
Peter Jones's offer of £200,000 for 33% equity was a turning point. After negotiations, Peter proposed a reduction to 15% equity if the initial investment was repaid within 12 months. Ben and Phil, valuing their business too highly to part with such a significant share, declined the offer.
Conclusion
The Potions Cauldron left the Dragons' Den without securing the desired investment. The duo's ambition to enchant the UK with their wizard golf concept continues, though they will need to find alternative ways to fund their expansion plans. Their experience in the Den underscores the challenges of balancing creative business ideas with solid financial strategies.