Vegan, cruelty-free nail polishes

Key Points:

  • Investment: No deal made
  • Investor: N/A
  • Equity Offered: 20%
  • Business: Telmoi Gel and Nail Polishes
  • Target Audience: Individuals seeking vegan, cruelty-free, inclusive nail polish shades
  • Challenges: Market saturation, small turnover, branding concerns

The Pitch

Dagenham-based entrepreneur Natal Allen presented her inclusive nail polish brand, Telmoi, to the Dragons. Natal was seeking a £40,000 investment in exchange for a 20% equity stake in her business. The pitch highlighted Telmoi's unique selling proposition: a range of vegan, cruelty-free nail polishes designed to suit a diverse array of skin tones, filling a gap Natal discovered during a personal search for a suitable nude nail polish.

Financials and Offer

Natal revealed that over three years of trading, her business had generated £40,000 in revenue, selling over 7,000 units. Her products, primarily sold online and through a few beauty salons, were priced at £34.99, with production costs for the gel polish at £2.96 and the nail polish at £1.53. Despite these promising margins, the Dragons noted the modest sales figures as a point of concern.

Challenges Highlighted by the Dragons

  1. Branding Issues: Tuka Silliman criticized the branding, suggesting it looked cheap and lacked the vibrancy needed to stand out in a competitive market.
  2. Market Saturation: Sarah Davies and other Dragons pointed out the dominance of established players in the nail polish industry. They expressed skepticism that Telmoi’s unique shades would be enough to disrupt the market, especially given the ease with which larger companies could replicate these colors.
  3. Small Turnover: Several Dragons, including Stephen Bartlett and Peter Jones, were concerned about the low revenue over three years. They questioned the scalability and potential return on investment.
  4. Environmental Impact: Deborah Meaden highlighted her personal concern over the environmental impact of nail polishes, which influenced her decision to opt out.

Conclusion

Despite Natal's passion and the clear need she identified for more inclusive nail polish shades, she was unable to secure investment from the Dragons. The feedback focused on the need for stronger branding, a more distinctive market proposition, and greater evidence of demand. Natal left the den with valuable insights and the resolve to continue pursuing her vision, albeit without the financial backing of the Dragons.