Dragons' Den - Magic Wand Remote - Part 1

Summary

Chris Bernardo and Richard Pleakley, founders of the Wand Company, seek a £200,000 investment for a 10% stake to grow their business, which specializes in magical fantasy products. They introduce their first product, a real magic wand that functions as a universal remote control for electronics. Despite selling 10,300 units in their first year, they aim for £18 million in revenue within three years. The pitch is met with interest from potential investors, who offer varying deals, including equity back for performance milestones, highlighting the product's innovative appeal and the company's growth potential.

Takeaways

• 🧙‍♂️ Chris Bernardo and Richard Pleakley are the founders of the Wand Company, seeking a £200,000 investment for a 10% stake in their business.
• 🎩 They aim to capitalize on the 'magic market', a significant industry where consumers spend billions on fantasy products.
• 🪄 Their flagship product is a real magic wand, designed to control various devices in the home, such as music, TV, ceiling fans, and lighting.
• 📈 The Wand Company has already sold over 10,000 units since its inception and projects revenues of approximately £18 million within three years.
• 🤖 The technology behind the wand is a universal remote control chip used by one of the world's largest remote control manufacturers.
• 🔄 The wand's software is designed to recognize its orientation, allowing for intuitive control regardless of how it's held or turned.
• 🚀 The company has plans for future products that are not yet disclosed, with a focus on creating magical and surprising items.
• 💼 Both founders have a background in electronics and remote control development, with a previous product selling about 2 million units.
• 💰 The cost of the magic wand is around £10 in the UK, and it is sold directly to customers for £50, indicating significant profit margins.
• 📊 The Wand Company expects to sell 1.2 million units in the current financial year, projecting a net profit of £600,000.
• 💼 The founders are not seeking the investment for production but rather for growth and leveraging the expertise of the investors.
• 🤝 The pitch in the 'den' resulted in offers from multiple investors, with varying conditions and percentages of equity involved.

Q & A

What is the name of the company founded by Chris Bernardo and Richard Pleakley?

The company founded by Chris Bernardo and Richard Pleakley is called the Wand Company.

What investment are Chris and Richard seeking from the investors?

Chris and Richard are seeking an investment of £200,000 for a 10% stake in their company.

What is the main product of the Wand Company?

The main product of the Wand Company is a real magic wand that can control various electronic devices.

What technology is used in the magic wand to control electronic devices?

The magic wand uses a universal remote control chip that can send out and learn codes for various electronic devices.

How many units of the magic wand did the Wand Company sell by Christmas of the previous year?

The Wand Company sold over 10,000 units of the magic wand by Christmas of the previous year.

What is the projected revenue for the Wand Company within 3 years with the help of the investment?

With the help of the investment, the Wand Company projects a revenue of about £18 million within 3 years.

What is the cost of the magic wand to produce?

The cost of the magic wand to produce is about £10 landed in the UK.

What is the selling price of the magic wand to customers?

The selling price of the magic wand to customers is £50.

What is the projected number of magic wands to be sold in the current financial year?

The projected number of magic wands to be sold in the current financial year is 1.2 million.

What is the projected net profit for the Wand Company if they sell 1.2 million units?

The projected net profit for the Wand Company if they sell 1.2 million units is £600,000.

What special circumstances are expected to influence the sales of the magic wand?

Special circumstances expected to influence the sales include the release of two more Harry Potter movies and the popularity of Wizarding-themed games and franchises.