The Most Successful Pitch In Dragons’ Den History | Dragons’ Den
Summary
TLDRIn a 2007 episode of 'Dragons' Den', charismatic entrepreneur Levi Roots serenades the investors with his Reggae Reggae sauce pitch, captivating the dragons with his music and personality. Despite a significant misunderstanding regarding the size of an order, which was corrected by Richard Farley, Roots' likability and the potential of his product intrigue Peter Jones and Theo Paphitis. They eventually offer a combined investment of £50,000 for a 40% stake, a gamble they are willing to take on Roots' unique charm and the sauce's promise.
Takeaways
- 🎵 Levi Roots, the entrepreneur, used charm and charisma to pitch his Caribbean cooking sauce, Reggae Reggae, to the 'dragons' in a unique musical presentation.
- 👤 Theo Paphitis was particularly charmed by Levi's personality and pitch style, which was the first of its kind in the 'den'.
- 🎶 Levi Roots' use of music and song to introduce his product was a novel approach that captured the attention of the dragons and the audience.
- 📈 Levi claimed to have a massive order of 2.5 million liters from a meat company in Yorkshire, which later turned out to be a misunderstanding of the actual order size.
- 🤔 Duncan Bannatyne questioned the legitimacy of the large order and the actual sales figures from the previous year, revealing discrepancies in Levi's claims.
- 🏠 Levi made the sauce in his kitchen with the help of his family, which raised concerns about the scalability and legality of production for larger orders.
- 💡 Peter Jones offered half the investment Levi needed (25,000 pounds) for a 20% equity stake, doubling the original ask but halving the required investment.
- 🔄 Richard Farley pointed out Levi's mistake in the order quantity, correcting the 2.5 million liters to 2.5 thousand liters, significantly reducing the scale of the order.
- 📉 Despite the corrected figures, Levi did not adjust his business plan or requirements, showing a lack of adaptability to the new information.
- 🤝 In the end, both Peter Jones and Richard Farley offered to invest, with each willing to put in 25,000 pounds for a 20% stake, totaling the original ask but for a 40% equity share.
- 🎉 Levi Roots accepted the offer, realizing that having a smaller percentage of a successful business could be more valuable than full ownership of a stagnant one.
Q & A
Who is Levi Roots and what did he pitch in the Den?
-Levi Roots is an entrepreneur who pitched his Caribbean cooking sauce called 'Reggae Reggae Sauce' in the Den in February 2007, seeking an investment of fifty thousand pounds.
What was unique about Levi Roots' presentation in the Den?
-Levi Roots' presentation was unique because he used charm, charisma, and a musical performance to capture the attention of the investors, making his pitch memorable and engaging.
What was the initial order Levi Roots claimed to have secured for his sauce?
-Levi Roots initially claimed to have secured an order for 2.5 million liters of his 'Reggae Reggae Sauce' from a meat company in Yorkshire.
What was the actual content of the letter from the meat company?
-The actual content of the letter stated that the meat company was ready to make an order as long as Levi could supply the product, with a potential for 2.5 million liters if the product was successful, and they offered a 5% royalty.
What was the misunderstanding about the order quantity that Levi Roots had?
-Levi Roots misunderstood the order quantity as 2.5 million liters, but it was actually 2.5 thousand liters, which is significantly less.
What was the annual potential order Levi Roots was expecting after the initial misunderstanding was clarified?
-After the misunderstanding was clarified, the annual potential order was about 25 thousand liters per year, not the initially thought 2.5 million liters.
How much was Levi Roots expecting to make from the initial order he thought he had?
-Levi Roots was expecting to make around 16 million pounds from the initial order he thought he had, which was based on a misunderstanding of the order quantity.
What was the actual potential revenue from the annual order after the misunderstanding was clarified?
-The actual potential revenue from the annual order, after the misunderstanding was clarified, was about 130 thousand pounds per year.
What offer did Peter Jones make to Levi Roots?
-Peter Jones offered Levi Roots half of the fifty thousand pounds he needed, but in return, he demanded the entire 20% equity stake in the 'Reggae Reggae Sauce' business.
What was the final decision Levi Roots made regarding the offers from the Dragons?
-Levi Roots decided to accept the offers from both Peter Jones and Richard Farley, which meant he would receive the full 50,000 pounds for a 40% equity stake in his business.
What was the main lesson Levi Roots learned from his experience in the Den?
-The main lesson Levi Roots learned was that his personal charisma and the appeal of his product were the main selling points, and that maintaining his integrity and delivering a good product were crucial for success.
Outlines
🎵 Pitch with Personality: Levi Roots' Reggae Reggae Sauce 🎵
Levi Roots, a charismatic entrepreneur, entered the Den in 2007 seeking a £50,000 investment for his Caribbean cooking sauce, Reggae Reggae. With a catchy song and a compelling pitch, he captured the Dragons' attention. Despite a misunderstanding about a massive order, which was actually for 2.5 thousand liters instead of millions, Roots demonstrated confidence and a family-oriented business approach, making the sauce in his kitchen. Theo Paphitis showed interest, but concerns about the scalability of production were raised.
📜 Misunderstandings and Offers: The Dragons' Dilemma 📜
The script reveals a significant error in Roots' understanding of the order size, which was corrected by Richard Farleigh. The potential order was much smaller than initially believed, leading to a reevaluation of the business's scale and financial requirements. Despite this, Peter Jones offered half the requested investment for the full equity stake, challenging the traditional rules of the Den and sparking a competitive interest from another Dragon.
🔄 Negotiation and Decision: Levi Roots' Business Future 🔄
Facing the possibility of giving away a significant portion of his business, Roots had to decide between a smaller percentage of a potentially successful venture or full control of a business with less growth potential. He chose to accept the offers from both Peter Jones and Richard Farleigh, resulting in a 40% equity stake for the combined investment. The narrative highlights the importance of Roots' personal brand and integrity in the success of the product.
Mindmap
Keywords
💡Entrepreneur
💡Investment
💡Charisma
💡Dragons' Den
💡Reggae Reggae Sauce
💡Pseudonym
💡Cottage Industry
💡Mass Production
💡Equity Stake
💡Royalty
💡Business Plan
Highlights
Levi Roots, the entrepreneur, charmed the dragons with his Caribbean cooking sauce, Reggae Reggae, in February 2007.
Levi Roots used music to pitch his product, engaging the dragons with a song about his sauce.
The Jamaican Roots emphasized the connection between music, food, and the cultural significance of his sauce.
Levi claimed to have a massive order of 2.5 million liters from a meat company in Yorkshire, showcasing market interest.
The dragons were intrigued by Levi's charisma and the unique way he presented his business plan.
Levi Roots' real name is Keith, which he revealed as a pseudonym during the pitch.
Levi's sauce was sold at the national carnival for 15 years, indicating a grassroots customer base.
The sauce's production was a family affair, made in Levi's kitchen, which raised questions about scalability.
Levi needed £25,000 for equipment to meet the demand of the large order he claimed to have.
The dragons questioned the legitimacy of the 2.5 million liters order, revealing it as a misunderstanding.
The actual order was for 2,500 liters, not 2.5 million, showing a significant error in Levi's pitch.
Despite the mistake, Levi remained unfazed and open to adjusting his business plan.
Peter Jones offered half the investment for the full 20% equity, a bold move in the den.
Richard Farley matched Peter's offer, leading to a 40% equity stake for the dragons in total.
Levi had to decide between a smaller percentage of a potentially successful business or full control of a stagnant one.
Levi accepted the offers, valuing the opportunity to grow his business despite the reduced equity.
The dragons recognized that Levi's personality and the product's appeal were the real selling points.
Levi's success story emphasizes the importance of charisma and a compelling pitch in entrepreneurship.
Transcripts
[Music]
Levi Roots was one entrepreneur who
proved the rule that even the dragons
can be wooed with charm and charisma he
came to the den in February 2007 looking
for an investment of fifty thousand
pounds for his Caribbean cooking a
compliment Reggae Reggae sauce in my
food for me when you think charisma and
personality they could only be one name
Theo Paphitis no no no it would only be
one name Levi Roots twice when he came
on playing that guitar with that
fantastic hair fantastic voice fantastic
song he had everyone's attention he's
the first person that's come into the
den that's actually made a pitch all
around music you got to know about his
product with one song so nicely dr fried
chicken make burgers finger lickin he
was so instantly likable you rooted for
him ah I didn't intend that that was
quite an unexpected coincidence what
some reg assassin early
[Applause]
the Jamaican you make a song and dance
about everything and music and food goes
together I have the song in my heart I'm
gonna have something that when the
Dragons see this they're not gonna know
what what's hittin levi medially it
captured your attention better than any
sophisticated business spreadsheet a
dirty but fundamentally the product has
to be good for 15 years we've been
marketing the source at the national
carnival I've got a very nice order from
a Meat Company in Yorkshire for wait for
it two and a half million litres of
regulated source as their first orders
we vibe just like a shook hands in a
dealer but a nice letter from them which
which I have with me now all we have to
do now is just try and get production up
to standard any questions please it's
rare for the Dragons to be serenaded for
an investment but will that help Levi
Roots secure the 50,000 pounds he needs
in return for a 20% share in Reggae
Reggae sauce
Theo Paphitis wanted to know more about
the entrepreneur in front of him Levi
Roots what a great name a real name no
it's my pseudonym my real name is Keith
[Laughter]
you should have liked him and said yeah
my mother calls me Keith she chose me
Levi I've been knowing that ever since
that the dragon seemed charmed by Levi
but they're also been used by his claim
to have secured a massive order for his
sauce Duncan Bannatyne has some
questions okay you mentioned a letter
you had with an order for 2.5 million
litres yeah so have you got with you I
have indeed well would you pass that to
Theon let him read it well I'll ask you
a few more questions no problem
I think Thea must be designed some guy
right in front of me here I like
you already
so you've been selling this for 15 years
yes accountable no kind of
so how many bottles did you sell last
year suing our thousand ten thousand
bottles at the carroll and approximately
how much per bottle
149 so about four thousand pound
turnovers the sauce actually cost thirty
two pens to make each bottle of this
size where do you make it how do you
make it you make it in your kitchen or
make it at home in my kitchen and my
children help me and we just sort of do
it as a family there um it's very small
kitchen we're not we can't do a very
large amount can you legally make things
that are in your kitchen and go out and
sell them nationwide absolutely because
we've had Nevada our electronic
confirmation from the food standing okay
was the one of the first thing that I
did have you spoken to anybody about
what it takes to produce the kind of
volumes that are going to be needed
little Billy's and what do you need to
do what I need to do is we rent a place
I mean I want to buy or anything like
that I would just rent a premises and I
think the equipment will cost me about
twenty five thousand
all equipment your twenty you need to
spend twenty five thousand pound and
equipment yeah Levi still sounding
confident but his ambitious plans mean
transforming a cottage industry into a
mass production line virtually overnight
Theo Paphitis has been studying Levi's
paperwork and has some concerns about
the order itself I might have
misunderstood you slightly because I
thought you said that you had an order
for two and a half million liters that's
not what this letter says this letter
says if they were to try market your
product and if it was as successful as
some of the other lines that are in
national retailers that's the sort of
level they would have to produce to make
it happen is that your understanding no
basically what he's saying to me says
look we are ready to make an order as
long as you can surprise with this this
is what we will do right and they're
gonna pay your royalty of five percent
five percent providing the knocking
supplying om allowed I mean he thinks
that that will create about three
hundred ninety thousand packs yeah I
wish you'll retail at about 1.7 million
so five percent of that
85 85 okay so that's me to sing us
something that's that would be that
would be that would be your royalty yes
roughly roughly yeah that'll be and then
you're gonna be selling of these guys at
six pound fifty elites per liter yeah
what's that in real money I think it's
16 million something 16 16 and a half
million leave I may have appeared more
musician than entrepreneur but it seemed
he had an order which would impress any
dragon I went through the Dragons Den
that morning thinking that I'm not gonna
have a business plan I thought you know
Levi you're gonna be honest with
yourself you gotta go as you I was well
confident with what I had lots of
sources are remarkably good but then it
sound isn't enough to actually make you
into a success there's a whole
combination of factors Levi's charisma
charm personality
I had a half-decent source to give it a
shake hey presto but Richard Farley
picked up on a problem with his order
and it looked like Levi's luck was about
to run out it's something I don't
understand you've got an order for two
and a half thousand kilos is that the
one you're saying is two and a half
million liters yeah because I don't
think that's right two and a half
thousand two hundred and fifty thousand
isn't it
two thousand five hundred kilos it's a
lot less than you think it is thank you
and a half thousand the order is for two
and a half thousand kilos well a kilo is
about the same as a liter if its water
it's exactly the same so it's not two
and a half million liters if you've got
two and a half thousand of kilos it's
two and a half thousand liters okay and
then it's time to initial requirement
and then a potential every week
thereafter of five hundred kilos per
week about 25 thousand a year okay then
you're in you're getting six pounds per
six pounds 50 per liter right so it's
about a hundred and thirty thousand
pounds worth per order per year it's not
sixteen million
Levi made a massive mistake on his
numbers and he wasn't fazed at all he's
like uh okay fair enough
and he didn't change a business plan so
he was going to do an order which was
1,000 times smaller than what he thought
after I'd explained it to him but he
didn't say oh we need less money or we
need a smaller warehouse so we need
smaller quantities nothing changed you
probably you admit to me that your
business skills probably would need a
little bit of help absolutely I would
say that yeah so I'm just sort of
sitting here thinking do I want to take
a gamble you know okay could I just cut
it gives me a bit of time to think about
whether he wants to gamble or whether
think about it cuz I'm I know where I'm
going with it and I just want to be
clear where I am and so you got no
illusions going forward and I think that
trying to get into this market we know
how competitive it is it's seriously
seriously competitive to try and range
run product it's kind of almost
impossible so to let know where I am
I like impossible challenges good and
I've been sitting here for ten minutes
I've been actually stuck I can't believe
this is the first time ever I've
actually started to sweat and I don't
know whether it's the source that I've
just taken up or actually whether it's
what I'm about to say um it is a
complete punt but I kind of probably
would enjoy it I've got a few people in
the marketplace that could introduce you
to but I'd want a little bit more of a
slice but I wouldn't to take too much
away from me because I think you need to
earn a living but I would offer you half
the money for 20%
it's an extraordinary twist Peter Jones
has stepped in and offered Levi half of
the fifty thousand pounds he needs but
he's demanding the whole twenty percent
equity stake in return under the rules
of the den Levi must secure all the
money he's asking for or he leaves
empty-handed I was about to make an
offer I said there is something here and
I thought I'd really love to work with
him so I was sort of in the middle of
putting my thoughts together and Peter
jumped in and I think he said I was
thinking I like impossible challenges
good
and it is a complete punt but kind of
probably would enjoy it
but I would offer you half the money for
20% I was panicking now thinking that
maybe I've blown this thing so to hear
Peter saying that yeah um he likes
taking chances what was like you know
ringing a bell and saying that hey I may
still have a chance yet is that an
interesting offer to you I mean we're
talking about 25,000 for 20% so no I
think I think that's a fair that's
that's not a it is a gamble it is a punt
I'd match that 25,000 for another 20% so
he'd be talking 50,000 for 40% leave I
now had two dragons interested but they
were asking for nearly half his business
I knew that I was gonna have to give
away much more than I had gone there to
do and having to make a decision whether
or not it's the greatest thing to have a
smaller percentage of a business that's
going somewhere or to have everything of
a business that's not going anywhere and
and that's quite an easy decision for me
I would accept
[Music]
put some music in your sauce today give
me some Reggae Reggae sauce
other people should sing their pictures
as well I've got denying an Bartlet
emails and mixed toast and regards
Coronation Street
[Music]
the only thing wrong with this is
there's no music in it because what I if
you take the lid off and pour it over
your food it goes chewed into the
flavors and put some music into your
food that's exactly what I felt we did
had a nice little kick to he should have
musical lids when you open it it goes
reggae
okay so I really applaud Peter and
Richard for coming on board but one
thing that we learned was that they
don't need to do much because what is
actually selling here is not whether at
the source is Levi Roots
as long as my integrity remains intact
and we can come up with some very good
product I think the British public will
say we have a piece of that
you
[Applause]
you
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