Entrepreneurs Reject FOUR Offers of £100,000 | Dragons' Den

first to face the Dragons a Mateus Etna and Paul Varga from Austria and to Luo GaN Sina from Nigeria who met at University materials is taking care of all the numbers Tulum is building the products and I myself put everything together in a nice way [Applause] [Music] hi I'm Paul hi I'm Matthias hi I'm teri and really three co-founders of clay brush with play brush we are helping kids we did sheet brushing by converting it into a fun and instructional game and today we are here to ask you the Dragons for a hundred thousand pounds to help us boost our magazine in the UK and in return we are offering you one percent of our business one percent yes one percent yes one percent yes one percent so why have we started players in the first place we were inspired by middle godchild who like most kids is not particularly keen on tooth brushing and was therefore causing his mom a lot of annoying troubles play versions of smart device which transforms any normal toothbrush into gaming controller you just plug it onto the toothbrush connected by a bluetooth to smartphone or tablet and while brushing teeth you play funny motivational games we have sold a hundred thousand devices so far within only one and a half years after launch we've closed a significant deal with Unilever so the play brush comes with playing the tie quality toothbrushes so we are now here to get the Dragons on board and basically bring flavors in every bathroom in the United Kingdom so we now wanted you to have a go try it out and see how at hardbox I'll try it out fantastic Mateus Etna Paul Varga and Tulu Logan Cena are hoping to extract a hundred thousand pounds from a dragon Sylvania arrow turns right if the person who am i I think I'm on the right in return they're offering one percent of their app based business which teaches children to clean their teeth by connecting their toothbrushes to tablets but the 10 million pound valuation is already brushing Tuco Suleiman up the wrong way you've come in here wanting a hundred thousand pounds for 1% yes I don't get out of bed for 1% so let's get to the point guys tell me how big you are in 2016 we had 1.2 million turnover and now we've already turned over 2 million for this year yeah and we are happy to obviously negotiate about the stake in the amount so 1.2 million gross profit is how much so last year it was around 20% should 240,000 yeah net profit no net profit loss was how much 800 how much 800,000 zeroes how much you gonna lose this year less than last $1 500,000 is protected now we are seeking fast profits in year and 2019 and then we'll run it as a profitable company you're burning money like a big tech company so where is the money going mainly in technology it's the software side the data side the new products we're building I'm a little confused on your sales in your business model I mean you've done 1.2 million sales last year but I'm I don't quite understand have you had any sales in the UK 100,000 pounds max so only about a hundred thousand in the UK but nothing much where's your sales come from which countries France and Germany so you have a licensing deal with Unilever yes called branding and licensing right so and how much of that 1.2 million has come from that deal almost 70% what is the licensing deal three elements we sell the hardware with a margin and then there is a software component and the third bit is a software maintenance part so where it's recurring revenue on the software maintenance ok so you've had an upfront licensing deal but the bit that you'll continue to make money on is software yes ok because what I'm trying to understand is the potential ongoing within the license because I've got to tell you when you came in has said a hundred thousand pound for one percent I looked at the one I thought you all look perfectly sane Debra Medan reveals the money spinning potential of the recurring revenue on their licensing deal with a big household name but as that goes some way to appease her doubts over that 10 million pound valuation Jenny Campbell just isn't buying it when an entrepreneur comes in the den I'm looking for a product an entrepreneur where I can invest and contribute to your success and offering 1% of your business I feel like a very small fish in a pond full of lots of other fish and I actually don't like your products I'm afraid I'm surprised it says that dentists recommend it because I think you should have a level of seriousness to brushing your teeth so I wish you all the best but I'm out Jenny Campbell is the first dragon out at odds with the concept behind the product but tase Levani the head of a global vitamin Empire is feeling a certain synergy with the dental health entrepreneurs I think you guys are smart and the park is interesting in the UK my company has distribution in all the major retailers [Music] it would require quite a bit of my time but I can get you access to all the retail points that you need to so I'm gonna make you an offer I'm going to offer you a hundred thousand pounds of full amount but for 10% of the business okay thank you very much an offer from tazed Levani who can see a ready-made market for the product but it comes at a price ten times higher than the entrepreneurs wanted to give away but before Deborah Medan makes up her mind she's got some digging to do on their plans for future investment other than 100 thousand pound you're asking for today are you gonna need more money it would be part of a bigger round we're currently doing so I'm glad I asked that so what's the raise this time around 1.5 million so post this round what will the shareholding look like they're three of us the founders and the employees will have around 60% our current investors already have 25 26 % and the new investors would also participate okay I'm really interested in the licensing piece however you have made it quite hard because you're not going to be able to agree to massive percentages because bring the middle earth under eyes but no I am gonna make you an offer for all our money and I want 5% of the business [Music] Deborah Medan undercuts tazed LaVon E's bid by half as she discovers the financial constraints dictating the trio's terms will Tuco Suleiman also want a piece of the tooth brushing innovation I'm already in this market with achieving toy which will now put it into a brush we have the distribution we have the warehousing offices if you really want it to London I've got the infrastructure to do a lot of things for you so there's a lot to create a proper business very quickly in the UK if I'm gonna offer you all that plus my knowledge of sourcing what's that worth to you you can sign a boner it's no it's exactly this 1% that we are offering Oh hold up tell you what me to put 1% four hundred thousand and to give you all the rest for free I think I could have a lot of value to you I don't gonna make you an offer I'm gonna give you all the money I want ten percent Tuka Suleyman joins the dragon's bidding war matching Taylor Varney's offer of ten percent for all the money but tech giant pizza Jones is yet to have his say on the child friendly smart device I like the fact that you are a software business I've spent many many years developing software we're able to take a brand and put it into multiple countries around the world I've spent millions on that and I love the technology and I think where you're going with it is definitely the future I really like it and that's why I'm gonna make you an offer I'm gonna offer you all of the money for 5% thank you thank you before you make a decision I'm thinking of revising my offer I actually think I can add a lot more value than the other dragons have offered when launched ad product in the u.s. in the process of launching a dental vitamin-enriched product in the UK so I think we're completely aligned I'll drop the 10% to 6% you want to go to the wall and have a chat thank you thank you with four offers up for grabs the toothbrush trio have a lot to consider Peter Jones and Deborah Medan are each seeking a 5% stake Taylor Varney 6% and Tuco Solomon 10% time for the entrepreneurs to decide their fate [Music] okay thank you very much we really much appreciate it but we can not accept the office s taste and we have a counteroffer especially for Deborah what we could offer is a bot advisor position the company obviously no no financial commitments now but just to bring in your expertise and help us am i working for you now four times you can't do that guys you're really here for investment we can't do it for advice so you can't so that's approaches so what you want to do you accepting what are you doing then you cannot accept we can go up to one point two five percent for the hundred thousand well is that your say link whatever I'm really sorry guys I really wish you all the best but I'm at guys I'm out 1.25% is not doable particularly with 800,000 losses and the value that I was going to bring the too far apart so we're sure the best but I'm out it's really disappointing that's definitely at 1.25 is your maximum counter we get because it's already committed to certain variation we can't have to say sadly that as a result I'm out Thank You Emma with the entrepreneurs refusing to budge on their equity their brush with the Dragons doesn't end well and they leave the den with nothing that was annoying after that would counter a 3% even though it was never there they never had the flexibility to do that you you

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Keywords: dragons den, dragons den uk, evan davis, deborah meaden, peter jones, touker suleyman, tej lalvani, business pitching, entrepreneur, game show, shark tank, dragons, den, best, bits, new, worst, pitches, funniest, moments, most, shocking, ideas, products, businesses, dragons den funny, dragons den 2019, dragons den season 17, dragons den best pitch, Playbrush, Worst pitch ever, dragons den full episode

Id: n0SVSC2SNZg

Length: 14min 8sec (848 seconds)

Published: Sat Aug 31 2019