One of the Best Negotiations in Den History! | Dragons' Den

Summary

In this pitch, entrepreneur Alec Spaziano presents his leather goods business, Temporary Forevers, to potential investors on a 'Dragons' Den'-style show. He seeks £90,000 for 7% equity, showcasing versatile bags designed for professionals. Despite initial interest, the dragons critique the product's price point and quality. After negotiations, Peter Jones offers all the funding for a 35% stake, dropping to 25% upon return of investment. Alec considers the offer, valuing the partnership potential with Jones over a lower equity stake.

Takeaways

• 💼 Alex Spaziano is a Bucharest-born entrepreneur pitching his leather goods business, Brand's Temporary Forevers, to potential investors.
• 🎒 The business specializes in designing versatile leather bags for professionals, aiming to combine style with functionality.
• 🚀 Alex is seeking £90,000 for a 7% stake in his company, valuing it at approximately £1.3 million.
• 🌐 The company has successfully raised £136,000 through a Kickstarter project and has a total revenue of £230,000 in the last 15 months.
• 📈 Alex's goal is to make the brand available online and to expand into retail stores across Europe, Asia, and the United States.
• 💸 The negotiation centers around the company's valuation, with dragons expressing concerns about the price point and market positioning.
• 🔥 Peter Jones, a dragon with experience in the photography industry, is critical of the product's quality and price, ultimately deciding not to invest.
• 💡 Jenny Campbell offers £90,000 for 25% equity, a more favorable deal compared to Peter Jones' initial offer of 35%.
• 📉 Peter Jones later offers the same amount for a 35% stake, with a condition to reduce to 25% once he gets his money back.
• 🤝 After negotiations, Alex agrees to a deal with Peter Jones for £90,000 for a 35% stake, dropping to 25% when the money is recouped, valuing the company at approximately £250,000.
• 🏆 The deal concludes with Alex expressing excitement about having Peter Jones on board, highlighting the potential for growth and partnership.

Q & A

What is the name of the entrepreneur presenting in the script?

The entrepreneur's name is Alec Spaziano.

What is the name of Alec's business?

The name of Alec's business is 'Temporary Forevers'.

What type of products does Temporary Forevers offer?

Temporary Forevers designs and creates leather goods for professionals, specifically bags that can be used as backpacks, messenger bags, or briefcases.

How much money did Alec raise through Kickstarter projects?

Alec successfully raised a total of 230,000 pounds through two Kickstarter projects.

What is the current objective for Temporary Forevers according to the script?

The current objective is to make the product available online and to release retail stores across Europe, Asia, and the United States.

What is the amount Alec is asking for and what equity stake does he offer in return?

Alec is asking for 90,000 pounds in exchange for seven percent of his business.

What is the valuation of the business based on Alec's offer?

Based on the offer, the business is valued at approximately 1.3 million pounds.

What is the criticism from the dragon who exited the negotiation?

The dragon criticized that the product is overpriced for the quality offered and that it's in a difficult price point which may lead to struggles in the market.

What is the offer made by Peter Jones, one of the dragons?

Peter Jones offers all of the money requested but wants 35% of the company, with a condition to drop down to 25% when he receives his money back.

What is the counter-offer from Jenny Campbell?

Jenny Campbell offers all of the money for 25% of the business.

How does Alec evaluate the worth of his business?

Alec evaluates his business to be worth about 10 times the profit, which would be around 600,000 pounds, suggesting a 15% equity for the investment.

What is the final agreement reached between Alec and Peter Jones?

The final agreement is that Peter Jones will invest the full 90,000 pounds for a 35% stake, dropping to 25% when the money is paid back.