Key Points:
- Investment: £50,000
- Investor: Peter Jones
- Equity Offered: 20% initially; settled at approximately 33% shared equally among three Dragons.
- Business: Yogiyo, a Korean food company.
- Target Audience: UK market, especially consumers interested in authentic, homestyle Korean cooking.
- Challenges: Brand protection issues, intense market competition, scalability, and supermarket entry.
The Pitch, Financials, and Offer
Ben Ansa and Suyun Yoo, a dynamic duo and couple, launched their pitch with a vibrant introduction to their business, Yogiyo, which brings Korean culinary delights to the UK. Their product lineup consists of authentic Korean sauces and dishes, which they currently market through various high-end and mainstream retail outlets, like Selfridges and Whole Foods. The financials revealed a solid daily turnover from their mobile food trailer, prompting them to seek expansion into supermarkets. They asked for £50,000 in exchange for a 20% stake in their company to facilitate this growth.
Challenges Highlighted by the Dragons
The Dragons expressed concerns about several issues:
- Brand Protection: The brand name 'Yogiyo' was not fully secured on all domain fronts, leading to potential customer confusion.
- Market Competition: Peter Jones highlighted the fierce competition they would face from established brands as they scale, particularly regarding pricing wars in supermarkets.
- Scalability and Market Entry: The task of entering supermarkets and scaling production was deemed tough, with warnings about squeezed margins and operational challenges.
Conclusion
Despite the challenges, the pitch concluded on a high note with Peter Jones making a substantial offer. Initially, the couple offered 20% equity, but after negotiation, they settled on a deal where Peter Jones and two other Dragons would each take approximately a third of the required equity. This significant partnership promises to leverage the Dragons' expertise and resources to propel Yogiyo into a successful market expansion, transforming their home-based sauce business into a potential leader in the Korean culinary market in the UK. This deal not only underscores the innovative spirit of Yogiyo’s founders but also the strategic possibilities when the right investment meets passionate entrepreneurship.