Dragons Den Investments

Glen_Clark

Ever wondered what happened to a BBC 'Dragons Den' Investment?
They are all here: https://www.tigermobiles.com/dragons-den/

redpete

Interesting.

Out of 141 businesses that agreed investments on the show only 65 (46%) of these progressed to the investment actually being made with 76 (54%) not coming to anything.

Of the businesses that did get investment 48 (74%) are still trading with the Dragons still involved with 37 (57%); 17 (26%) are not trading.

Of those businesses that did not successfully complete the investment 61 (80%) are in business with 15 (20%) no longer trading.

So information that they don't give you on the show: over half the businesses that appear to make successful pitches don't end up with the Dragons' money and those that do attract investment suffer a higher proportion of failure than those that don't go through. (With the simplistic measure of failure being those that are no longer trading.)

What the website doesn't show is the proportion of businesses that failed even on the initial pitch and are still trading.

Glen_Clark

I am drawn to the conclusion the biggest factor is the person running the business. When their equity share is diluted with other investors coming in, their incentive is diluted too. Duncan Bannatyne is one of the very few who really have done it all themselves, without wealthy and influential family backing. He has always been in a competitive market place with no original ideas or patents. But has always kept the biggest equity share himself, so had the incentive and drive to make it work.

alanq

Does "no longer trading" definitely mean "failed"? Could it not be that in some cases the businesses were so successful that they were taken over by a rival?

talexuser

I read that article some days ago and my first reaction was the impression they give on the program of dragon's expertise and involvement being a road to success was somewhat over hyped.


Looking at those stats I can't get over the impression that a little bit of luck is needed with your hard work for a new business. The biggest thing a dragon can do is possibly just get you into a big chain with their contacts if you have a suitable product?

wary

Thanks for the link.

This link here makes an interesting read as to how Sharon Wright (MagnaMole) got screwed up and stitched up by the Dragons' so-call investment:
http://www.dailymail.co.uk/news/article-1303097/Dragons-Den-winner-reveals-80k-promise-fact-loan--26-500-emerged.html

Surprised to read this narrative under Servicing Stop: "Following a number of complaints regarding the service provided by Servicing Stop Deborah decided to withdraw her offer after the Den." I'm aware that they have received widespread criticism for their operating methods, but according to the DD What Happened Next programme, it was they who pulled the plug when they received a better offer of investment from elsewhere.

Thrugelmir

Dragons Den happens in the real world as well. Doug Richard one of the early Dragons ran his own version in London near Covent Garden. Basic format was 6 start-ups presented. Each had 5 minutes to pitch the business. Followed by 10 minutes of questions. All attendees were provided with basic company information such as details of key personnel and financial data.

Audience consisted of investors from across Europe. One guy I recall ran the private equity side of BT's pension scheme.

I should add that minimum funding was £1m.

Dr._Shoe

A dragon involvement isn't actually about money, it's primarily a "route to market" or experience.

I have a friend who is an extremely clever man and has dozens of patents was actually invited to go on Dragons' Den. He declined.

d123

Or like Lings Cars, just a promotional avenue with no real intentions of actually taking the investment.

http://www.lingscars.com/ling-dragons-den.php#models

Thrugelmir

Dr._Shoe wrote: »

I have a friend who is an extremely clever man and has dozens of patents was actually invited to go on Dragons' Den. He declined.

There's many rich people with six figure sums to invest that are searching for the next Google or Facebook. The diamonds are far and few between.

Often the best ideas are the simplest. One of the most profitable I recall. Was a husband and wife that bought up the rights to copy and manufacture remote controllers for defunct video players and TV's etc.

Glen_Clark

wary wrote: »

Thanks for the link.

This link here makes an interesting read as to how Sharon Wright (MagnaMole) got screwed up and stitched up by the Dragons' so-call investment:
http://www.dailymail.co.uk/news/article-1303097/Dragons-Den-winner-reveals-80k-promise-fact-loan--26-500-emerged.html

Surprised to read this narrative under Servicing Stop: "Following a number of complaints regarding the service provided by Servicing Stop Deborah decided to withdraw her offer after the Den." I'm aware that they have received widespread criticism for their operating methods, but according to the DD What Happened Next programme, it was they who pulled the plug when they received a better offer of investment from elsewhere.

Interesting link Thank You. I heard there was a falling out between Bannatyne & Caan, and I think that explains it.