"This business saves lives!" | Dragons' Den Best Pitches (Kitt Medical)

Summary

Zach and James, co-founders of Kit Medical, pitch their life-saving allergy treatment kits to investors on *Dragon's Den*. They share their personal experiences with severe allergies and explain how their kits, which include adrenaline pens on subscription, have already saved lives in schools and workplaces. With their business growing rapidly, they seek £75,000 for a 5% stake to expand their product's reach. After a tense bidding session, they secure a deal with two investors, Deborah Meaden and Steven Bartlett, who see the potential in their life-saving innovation.

Takeaways

• 😀 Zach and James are co-founders of Kit Medical, a company providing allergy emergency kits with adrenaline pens for schools, workplaces, and other institutions.
• 😀 The duo is seeking a £75,000 investment for a 5% stake in their business to expand their life-saving service.
• 😀 Zach’s personal story of a severe allergic reaction and his mission to find a better solution is at the heart of the company’s creation.
• 😀 Their allergy kits include adrenaline pens, emergency treatment guidance, and online training, all mounted in easy-to-access locations in key environments.
• 😀 The business model charges institutions a subscription fee of £650 per year per kit, which includes supply maintenance and training services.
• 😀 In the past year and a half, their kits have been used in several life-threatening allergic reactions, including those of a 14-year-old and a teacher.
• 😀 Kit Medical has already partnered with over 350 schools and is expanding into workplaces like hospitality, leisure, and gyms.
• 😀 The market for allergy emergency kits has opened up due to changes in legislation, allowing Kit Medical to sell to Occupational Health schemes in workplaces.
• 😀 The company has exclusive agreements with pharmaceutical suppliers for adrenaline pens, providing them a competitive edge in the market.
• 😀 Zach and James aim for a potential exit in 3-5 years, with an anticipated company valuation of at least £50 million, possibly through acquisition by the pharmaceutical industry.
• 😀 The duo negotiates with three dragons: Deborah Meaden, Peter Jones, and Steven Bartlett, eventually deciding on a deal with Deborah and Steven, securing £75,000 investment for 4.5% equity.

Q & A

What is the business idea presented by Zach and James?

Zach and James are the co-founders of Kit Medical, a company that provides adrenaline pens on a subscription basis for allergy sufferers. They offer a mounted emergency kit in schools, workplaces, and other establishments, alongside training and management software to help manage severe allergic reactions.

How does the Kit Medical product work in emergency situations?

The Kit Medical product is a wall-mounted emergency pack that contains adrenaline pens for treating severe allergic reactions. It also provides emergency treatment guidance, ensuring that even untrained individuals can administer the treatment in critical situations. The pack is accessed by smashing a glass panel to retrieve the key.

Why is the Kit Medical product necessary, according to Zach?

Zach explains that while many people carry adrenaline pens, they are bulky, can expire, and might not always be carried. Furthermore, if someone has an allergic reaction, they may not have access to a spare pen or may need multiple pens before emergency services arrive. Kit Medical offers an emergency backup solution.

How much do Kit Medical kits cost for schools, and what does the fee include?

Schools are charged £650 per kit per year. The cost covers not just the installation of the kit, but also the replacement of expired medication, access to online training, and management of the kits through an online portal.

What are some of the real-life cases where Kit Medical’s kits were used?

The kits have been used to treat life-threatening allergic reactions, including those of a 14-year-old dance student named Ava and a math teacher named Billy Joe. Both cases received national press coverage.

What is the projected revenue growth for Kit Medical in the coming years?

Kit Medical's revenue for 2023 is expected to reach £463,000, with projections of £840,000 in 2025 and £1.25 million by 2026.

What are the barriers to entry for other companies attempting to enter the market?

Kit Medical holds trademarks, design rights, and exclusive agreements with a pharmaceutical company that manufactures adrenaline pens. This exclusivity, along with their regulatory licenses, makes it difficult for competitors to offer similar services.

How does Kit Medical plan to expand its market beyond schools?

Kit Medical has started expanding into workplaces, including sectors such as hospitality, leisure, gyms, and theme parks, thanks to changes in legislation and compliance that allow them to sell through Occupational Health schemes.

What is the investment that Zach and James are seeking from the Dragons?

Zach and James are seeking £75,000 in exchange for a 5% stake in their business to help with expansion, particularly by leveraging connections, profiles, and exposure to increase awareness and distribution.

What was the outcome of the Dragons’ Den pitch for Kit Medical?

Zach and James received multiple offers from the Dragons. Ultimately, they decided to accept an offer from Deborah Meaden and Steven Bartlett, agreeing to give them a combined 6.5% stake in the business in exchange for the £75,000 investment.