Key Points:
- Investment: £50,000
- Investor: Deborah Meaden
- Equity Offered: 25%, reducing to 20% after recouping the investment
- Business: Zevon Media
- Target Audience: Retail outlets, bars, clubs, hotels, restaurants
- Challenges: Lack of prior research on potential investors, high production costs, market competition
Blog Post: Zevon Media Secures Investment on Dragons' Den
Exciting Investment Deal Struck on Dragons' Den!
In an impressive turn of events on Dragons' Den, entrepreneurs Joshua and Hiram Cook secured a £50,000 investment from Deborah Meaden in exchange for 25% of their company, Zevon Media. The equity share will reduce to 20% once Deborah recoups her investment, making it a promising deal for both parties.
The Pitch
Joshua and Hiram Cook entered the den seeking £50,000 for 7.5% of Zevon Media, their high-end photo booth business. Their pitch highlighted the unique selling points of their contemporary photo booths, which are designed for retail outlets, bars, clubs, hotels, and restaurants. The booths offer instant photo uploads to social media platforms like Facebook and Twitter, enhancing user engagement and brand visibility.
Business Performance
Since their launch less than a year ago, Zevon Media has turned over £120,000 through rentals alone. They recently started selling the booths, with one already delivered and four more pending. The duo also introduced a coin-operated system for bars, increasing user engagement and providing a revenue stream for the venues.
Investor Interest
Despite a shaky start due to a lack of research on the dragons, Joshua and Hiram managed to impress the investors with their sales figures and market potential. Their openness about production costs and rental pricing demonstrated their business acumen. However, Peter Jones opted out due to a conflict of interest, being an investor in a competing photo booth company.
Investment Offers
Kelly Hoppen and Duncan Bannatyne both offered £50,000 for 20% equity. However, it was Deborah Meaden's offer of £50,000 for 25% equity that stood out. Deborah highlighted her experience in the coin-operated industry and the added value she could bring to the business through her extensive network.
The Deal
After negotiating, Joshua and Hiram secured a deal with Deborah Meaden, agreeing to her terms with the provision that her equity share would reduce to 20% once her investment was returned. The entrepreneurs were thrilled, recognizing the potential growth and mentorship opportunities Deborah could provide.
Conclusion
Joshua and Hiram's journey on Dragons' Den underscores the importance of preparation and adaptability in securing investment. Their innovative approach to the photo booth market, combined with Deborah Meaden's expertise, sets Zevon Media on a promising path towards expansion and success. The investment not only brings financial support but also invaluable guidance from one of the UK's top business tycoons.