Monetising personal digital data sparks interest in the Den 🐉 Dragons’ Den - BBC

Summary

Sam Jones, founder of Generate, pitches his innovative platform on a TV show, seeking £60,000 for 10% equity. Generate offers users two options: privacy mode to block online tracking or earning mode to share their data for rewards. The business model returns 80% of advertising revenue to users while retaining 20%. Competing with US companies that use cryptocurrency rewards, Generate has seen rapid growth. The pitch impresses multiple investors, leading to offers and a final deal of £60,000 for 10% equity, split between two investors, along with free office space. The successful pitch sets Generate up for future growth and market penetration.

Takeaways

• 😀 Sam Jones is the founder of Generate, seeking £60,000 for 10% equity.
• 🔍 Generate addresses the issue of data exploitation in the advertising industry by giving users control over their data.
• 🛡️ Users can choose 'Privacy Mode' to prevent companies from tracking them online.
• 💸 Alternatively, users can select 'Earning Mode' to share their data and earn points redeemable for rewards, vouchers, or charity donations.
• 📈 The average user earns between £5 and £25 per month in rewards and value.
• 💼 Generate's business model involves receiving revenue from advertisers and giving 80% back to users, retaining a 20% cut.
• 🍪 The platform does not use cookies but instead focuses on user consent for data sharing.
• 🚀 Generate has grown from 10,000 to 30,000 users within a year and aims to reach 1 million users in two years.
• 💼 There is a competitor in the US with a different approach, rewarding users with cryptocurrency, and a significantly larger user base.
• 💼 Investors are interested in Generate's potential for market penetration and its innovative business model, leading to multiple offers of full funding.
• 🏢 The pitch concludes with an agreement to share the deal at 5% each for two investors, including office space for the company.

Q & A

What is the name of the company founded by Sam Jones?

The company founded by Sam Jones is called 'Generate'.

How much equity is Sam Jones offering in return for the investment?

Sam Jones is offering 10% equity in return for the investment.

What is the main issue in the advertising industry that Sam Jones addresses?

Sam Jones addresses the issue of the advertising industry exploiting user data without their consent.

What are the two choices that Generate offers to its users?

Generate offers two choices to its users: 'Privacy Mode' to stop companies from tracking them online, and 'Earning Mode' where users can earn points by sharing their data.

How does a user earn points with Generate's Earning Mode?

Users earn points by sharing their interests with Generate, which then uses this information to tailor relevant advertisements for them.

What is the average reward a user can redeem per month according to the script?

The average user is redeeming between 5 and 25 pounds in rewards and value per month.

What percentage of the revenue does Generate give back to the user?

Generate gives 80% of the revenue back to the user and takes a 20% cut.

How does Generate differentiate itself from a similar company in the US?

Generate differentiates itself by not using cryptocurrency to reward users, unlike its US-based competitor.

What is the current market penetration of Generate's closest competitor?

The closest competitor to Generate has about six million users and is valued at approximately 135 million dollars.

What is Sam Jones's strategy for raising more money for Generate?

Sam Jones plans to discuss with existing shareholders the possibility of raising additional funds to increase market penetration and valuation.

How does Sam Jones respond to the potential threat of a large company like Google entering the market?

Sam Jones acknowledges the potential threat but points out that large companies like Google have not always capitalized on similar opportunities in the past, and he views them as a potential acquirer in the future.