Watch this entrepreneur ask for £150,000 sterling pounds (nearly $208,000 as of today… i.e. a ton of money!). His product: a device that prevents overflow in bathtubs.
Am I the only one concerned about sales channels?
Hat tip to Paula, aka Big Sis, for turning us onto this show!
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Hi Johnathan,
I remember watching this particular episode.
It's a wonderful product but the end of the episode brings to mind an entrepreneurs fallacy as to the value of their start-up company that I see time and time again at Dagos Den.
The entrepreneurs have accountants multi-million dollar/pound value to their compannies but current sales margins don't validate that and, in the case of this entrepreneur and many othes, are asking for vast amounts of money but only offering 5-10% equity.
In the case of Dragons Den, entrepreneurs not only get the funding but they also get real expertise. However, they start balking when the Dragons ask for anywhere from 25-40% equity.
For that amount of money, I wouldn't invest for that paltry sum equity, but is asking 40% outrageous? I don't know from an investor standpoint.
Perhaps this is something we coaches need to explore as to what is realistic?
Paula
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