One of the Best Negotiations in Den History! | Dragons' Den
Summary
TLDRIn 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.
Outlines
💼 Pitch for Investment
Alec Spaziano, a leather goods entrepreneur from Bucharest, introduces his business, Brand's Temporary Forevers, which designs versatile leather bags for professionals. He seeks £90,000 for a 7% stake in his company, highlighting successful Kickstarter campaigns that raised £136,000 and subsequent sales amounting to £230,000 in 15 months. Alec aims to expand online and into retail across Europe, Asia, and the States. He faces skepticism from Peter Jones, who questions the valuation and quality of the products, ultimately deciding not to invest.
💸 Negotiating the Deal
Following the critique from a retail expert, Alec continues to negotiate with the investors. Peter Jones offers £90,000 for a 35% stake, with a condition to reduce it to 25% once he gets his money back. Jenny Campbell also makes an offer for 25% equity. Alec discusses valuation strategies with the investors, suggesting his business deserves a higher value based on sales and growth potential. However, the negotiations become complicated, and Jenny withdraws her offer.
🤝 Finalizing the Partnership
Alec and Peter Jones continue their negotiation, with Alec considering the implications of a Kickstarter project versus a guaranteed order. They discuss the terms of the deal, including salary expectations and the potential for future orders. Alec seeks assurance of a large order to justify a lower equity stake. Eventually, they agree on a deal where Peter invests the full amount for a 35% stake, dropping to 25% once the money is recouped, marking a successful exit for Alec with a valuable partnership.
Mindmap
Keywords
💡Entrepreneur
💡Investment
💡Equity
💡Valuation
💡Kickstarter
💡Retail
💡Leather Goods
💡Negotiation
💡Profit
💡Market
💡Exit
Highlights
Alex Spaziano seeks £90,000 investment for 7% of his leather goods company, Temporary Forevers.
The brand focuses on versatile leather bags designed for on-the-move professionals, offering multiple carrying styles including a backpack, messenger, and briefcase.
Temporary Forevers raised £136,000 in its first Kickstarter project and £230,000 in total revenue over the last 15 months.
The company's objective is to expand online sales and enter retail stores across Europe, Asia, and the United States.
Peter Jones questions the company's valuation of £1.3 million, comparing it to his experience in reviving the photography brand Jessops.
Alex explains the name 'Temporary Forevers' as representing cherished moments that are temporary but remembered forever.
Sales in the last 12 months totaled £140,000, mostly from Kickstarter, plus £25,000 from online sales.
Touker Suleyman, a retail tycoon, criticizes the product pricing, claiming the bags are overpriced and of mediocre quality. He declines to invest.
Peter Jones offers all of the money but requests 35% equity, later agreeing to reduce his stake to 25% once his money is repaid.
Jenny Campbell makes a competing offer for all the money but requests 25% of the business, which Alex ultimately declines.
Peter Jones argues that the company is a startup and shouldn't be valued at the £600,000 that Alex proposes based on profit multiples.
Alex attempts to negotiate with Peter, proposing 20% equity after repayment, but Peter insists on 25%.
Deborah Meaden withdraws her offer, sensing Alex's focus on securing Peter as his partner.
Alex expresses concern that Jessops' limited geographical reach may not offer the sales impact he desires, despite Peter's confidence.
After a final negotiation, Peter guarantees a large order for the company, leading Alex to accept Peter’s offer of 35% equity, dropping to 25% after repayment.
Transcripts
first into the den is bucharest born
alex boozy our new an entrepreneur
primed to defend his enterprises price
tag he's stuffing gonna be exciting I
hope they're not gonna beach itself with
me on the evaluation and there are two
dragons in particular he wants to
impress I haven't decided yet which one
would be the best of c2 crystalline has
the experience in my field but Peter is
definitely a very influential person he
would help my presence tremendously
influential yes but notoriously fiery
when it comes to a company's valuation
hello dragons
my name is Alec Spaziano and I'm here to
offer you the opportunity to invest 90
thousand pounds in exchange for seven
percent of my business the brand's
temporary forevers we design and create
leather goods for today's on the move
professionals that wish to carry the
essential gadgets and photography gear
in a bag that is flexible and reflects
their style and character we bring an
added versatility that is not found
among other products on the market the
bag that I have with me is the first bag
designed with two different faces one
that we carried as a backpack and the
other as a messenger or briefcase
this makes ideal for the commuters that
want to cycle to work carrying a
backpack picking out a messenger and
then they can take the straps off and
walk to their meeting in a professional
looking briefcase we first made our
goods available in December 2015 through
a Kickstarter project and we
successfully raised 136 thousand pounds
since then we've had another successful
Kickstarter project bringing in a total
revenue of 230,000 pounds in the last 15
months our objective this year is to
make a grid available online and to
release retail stores across Europe Asia
and the States
thank you for your time and I'd like to
show you some of the bags possible
luxury travel laptop and camera bags of
the proposition from Alex Busey Arne
yeah he's offering just seven percent
equity in return for a 90 thousand pound
investment which values his business at
nearly 1.3 million pounds is Peter Peter
Jones revived the fortunes of ailing
photography brand Jessup's will he think
this business opportunity is
picture-perfect
wife temporary forevers that's a really
odd name the reason that is because it
comes from the moments that you cherish
and you remember they're temporary but
they last forever so is this a temporary
forever moment for you of course it is
enough for you as well
I don't I don't know what have been the
sales in the last 12 months 140,000
coming from the Kickstarter project plus
approximately 25,000 from online sales
okay so you basically sold a hundred and
sixty-five thousand pounds worth of
product yes
and you're very specific about ninety
thousand for seven percent yes why
considering that we have had
approximately 65,000 in profit I think
it's a fair price would you agree no I
know thinking through my bags you do
here and this one here for instance
retails for how much it retails at 2:45
to prefer it's quite expensive yes
you're not at the low end no there are
some very very good imitation levers
that you put next to each other you
won't even know it it's limitation lever
okay say something sure it's like having
a Lamborghini with a Renault engine so
although on the outside it may look
great it's not the same thing yeah but
it's a different price point you know
what I'm trying to say to you is you're
at that mid price point which is a very
difficult price point I actually I think
a price point is probably okay depending
on the quality of the product you know
be prepared to pay you know for the
leather I love leather goods satchels
backpacks in class
I don't want to wear a bag that's a
nylon material I like leather it looks
looks good the quality and I think it's
a massively growing market for men for
men exactly absolutely so that's all
good Alex
I know this area very well your products
over price or what it is
I think the quality's mediocre this
price range you're gonna struggle and
struggle big and I'm not gonna invest in
you for that reason and I'm out thank
you a skeptical Tuco Suleiman makes his
exit has the retail tycoons criticism
torpedoed the entrepreneurs chances with
the rest of the den Alex the fact that
toukas in this market and knows it well
and has told you that basically doesn't
think it's gonna amount to much it was
interesting because you have to take
that on board it's a tough business and
coming in at 90 K for 7% I think you
make it harder but you're a very very
very investable individual thank you I
can see a big opportunity if I was to
help you put this into Jess its
overnight not only would we prove to
Quran we proved terror on as well
because you said you wouldn't get into
retail in fact you could get into retail
in the next two minutes Alex I am going
to make you an offer
[Music]
but I want a decent-size return so I'm
gonna offer you all of the money but I
want 35% of the company would you agree
with me that valuing the company at
approximately 250,000 pounds is too low
no because I've it for about 200,000 I
introduced a brand that's doing just
over a million pounds worth of sales in
this type of market we are pretty much
experts in that field thank you thanks
for the offer a bullish offer from Peter
Jones one of Alex's preferred dragons
but he's demanding a hefty 28% more
equity than the entrepreneur wanted to
give away slashing the value of his
company by over a million pounds is
Jenny Campbell poised to up the ante the
valuation over a million yeah where's
that derived from I I believe that
everybody likes to negotiate a bid so if
I came with the most reasonable offer I
think you're very very persuasive
so I will make you an offer for all of
the money for 25% of your business
thank you I'd like to ask Peter I think
my business is worth about 10 times the
profit if I evaluate it so that would
bring it to about 600,000
which would be 15% is that a fair way to
evaluate it no no because you're a
start-up and I wouldn't even value it
potentially at half that but because
it's a start-up he has the growth
potential
it does but you're asking me would I
value this at six hundred thousand I
clearly wouldn't I did come here
thinking that my max would be 15% but I
would really hope and appreciate if you
took into account and accept is 20% I
think it's a large enough sum to be
interested would I get my money back
absolutely
I tell you what I will do I would offer
you all of the money for 35% and I would
drop down to 25% when I receive my money
back
would you consider accepting 20% when
you get your money back I think that's
more than fair
[Music]
Alex I wouldn't know it's got to be 25
Alex let me just tell you where I am
because clearly the negotiation is going
on with OJ it's clear that you're
targeting pizza for this investment and
for that reason and which withdraw my
offer and say that's a mouth
sorry I'm sorry freeze trying to be do
too much thank you thank you one deal
summarily taken off the table leaving
the entrepreneur at stalemate with Peter
Jones Alex why don't you go to the back
of the room and think about it will he
accept the Dragons offer of all the
money for a 35% stake
[Music]
dropping to 25% when he gets his cash
back my worry is because Jessup's is
only in one country we wouldn't have
enough sales to have the impact that I
would want if we have a Kickstarter
project that does reach above two
hundred thousand pounds would you be
willing to go down to 20 percent don't
know is it the five percent I don't
understand Alex why you would go for a
Kickstarter project when next week you
get an order for two hundred thousand
pounds
you don't need Kickstarter if you've got
a fire starter if you do place an order
of two hundred thousand would you be
able to guarantee that and now accept
25%
do you know what I like the way you're
negotiating but I won't if we do a deal
I want us to realize that that's a
partnership I wouldn't want to go
through a relationship where we end up
negotiating anything
one last question would I have a salary
including this a reasonable one
what's your reasonable salary with a 30
B okay
you won't 75 percent at this company
well my money's repaid so you could be
earning a lot more than that you would
in fact guarantee that you would place
that order I'll guarantee that we have a
deal please for your patience
great welcome to negotiation you guys
finally after a hard-fought battle on
both sides
Alex exits the den where the deal I
would have preferred if it was 20% but
it feels amazing to have Peter Jones on
board right now I really like him I'm
generous thank you I'm really excited
you
you
Weitere ähnliche Videos ansehen
BEST PITCHES: Levi Roots' Reggae Reggae pitch lures Peter Jones! | Dragons' Den - BBC
The Most Successful Pitch In Dragons’ Den History | Dragons’ Den
Dragons fight over jaw-dropping multi-million pound business | Dragons' Den - BBC
Bear Minimum Are Holding SOMETHING Back From the Sharks | Shark Tank US | Shark Tank Global
The Dragons Fight Over Proper.com | Dragons' Den | Shark Tank Global
These Bold Entrepreneurs Stick To Fair Pricing For Their Products | Dragons' Den
5.0 / 5 (0 votes)