The Product Duncan Bannatyne HOPED Would Fail! | Dragons' Den | Shark Tank Global

Summary

Imran Hakeem pitches 'iTeddy,' a teddy bear integrated with a personal media player that can play movies, audio, and bedtime stories for children. Seeking a £140,000 investment for 15% equity, Imran showcases the product and its potential. While some dragons express skepticism about its patent and the role of technology in parenting, Peter Jones and Theo Paphitis see its value. They offer £40,000 for a 40% stake in the business. Imran accepts, sacrificing a larger share for the critical funding and expertise needed to grow his innovative product.

Takeaways

• 😀 Imran Hakeem is seeking £140,000 for a 15% stake in his business, iTeddy, which integrates a media player into a teddy bear for children.
• 😀 iTeddy includes a simple user interface designed for children, offering media such as cartoons, bedtime stories, and nursery rhymes.
• 😀 The teddy bears are available in MP3 and MP4 versions, with prices ranging from £20 to £28, and a projected retail price of £45 to £55.
• 😀 Imran has developed the iTeddy concept after an idea sparked from a conversation with his niece and brother about finding the best toy for her.
• 😀 The business model includes a subscription website where parents can download media onto the teddy bear, with options priced at £3.95 and £5.95.
• 😀 iTeddy is patent-pending, with Imran claiming the patent covers the integration of a personal media player into a soft toy.
• 😀 Some Dragons are skeptical about the patent, especially regarding potential competition from other tech companies and copycat products.
• 😀 Despite initial skepticism, Peter Jones and Theo Paphitis see potential and offer £40,000 for 45% equity in the company, three times the original request.
• 😀 Imran negotiates with the Dragons, aiming to retain more equity, eventually settling on an offer of £40,000 for 40% equity in iTeddy.
• 😀 The business combines a fun product with potential for a high-margin revenue stream, making it attractive despite some concerns about the technology's future.

Q & A

What is the core concept behind the 'it Teddy' invention?

The core concept behind 'it Teddy' is a teddy bear integrated with a personal media player, allowing it to play audio and video content. This aims to bring the teddy bear into the 21st century by incorporating technology to entertain and educate children.

How much investment is Imran Hakeem seeking, and what is he offering in return?

Imran Hakeem is seeking an investment of £140,000 in return for a 15% share in the business.

What is the potential market for the 'it Teddy' product?

The market for 'it Teddy' includes parents seeking innovative, educational toys for their children. It targets the children's entertainment sector, with the potential to expand into partnerships with content providers like Disney for licensed content.

What are the pricing and profit margin expectations for 'it Teddy'?

The MP4 version of 'it Teddy' is expected to be sold to retailers for £28, with a 46% margin. The retail price for consumers is projected to range between £45 and £55.

What unique feature does 'it Teddy' offer compared to traditional teddy bears?

Unlike traditional teddy bears, 'it Teddy' integrates a personal media player inside the bear, enabling it to play audio stories, nursery rhymes, and videos. It also features a child-friendly user interface for easy navigation.

What concern does Duncan Bannatyne express about 'it Teddy'?

Duncan Bannatyne expresses concern about the idea of a teddy bear replacing a father’s role, particularly in bedtime activities like reading stories. He believes this could be detrimental to the parent-child relationship and is therefore not in favor of the product.

What is the current status of the patent for 'it Teddy'?

The patent for 'it Teddy' is currently pending. Imran's patent attorneys believe the chances of it being granted are high, though he cannot provide an exact timeline for when it will be officially granted.

What additional feature does the website for 'it Teddy' offer?

The 'it Teddy' website offers a subscription service where parents can download content like bedtime stories and cartoons directly onto their child's personal media player. There are two subscription options: £3.95 and £5.95.

What role does Peter Jones play in the investment process for 'it Teddy'?

Peter Jones, along with Theo Paphitis, offers to invest £40,000 in exchange for a combined 45% stake in the business. Peter believes in the potential of the product and its associated website despite some reservations about the patent.

How does Imran respond to the offers made by the Dragons?

Imran negotiates with the Dragons, aiming to secure a better deal. He ultimately agrees to give Peter Jones and Theo Paphitis a combined 40% stake in exchange for their £40,000 investment, as he values their expertise and believes the investment will be worth the sacrifice.