The Most Successful Pitch In Dragons’ Den History | Dragons’ Den

Summary

In 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

00:00

🎵 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.

05:02

📜 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.

10:06

🔄 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.

Keywords

💡Entrepreneur

An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. In the video, Levi Roots embodies the spirit of entrepreneurship by pitching his Caribbean cooking sauce, Reggae Reggae, to the investors in the 'Den'. His charisma and unique approach to the pitch demonstrate the qualities often associated with successful entrepreneurs.

💡Investment

Investment in this context refers to the financial capital provided by investors to fund the growth and development of a business in exchange for equity or a stake in the business. Levi Roots is seeking an investment of fifty thousand pounds to scale up his sauce production, which is a common scenario in entrepreneurial pitches.

💡Charisma

Charisma is a personal quality that makes someone attractive, persuasive, and able to inspire devotion in others. The script highlights Levi Roots' charisma as a key factor in his pitch, as it captivates the investors and sets him apart from other entrepreneurs.

💡Dragons' Den

Dragons' Den is a television show where aspiring entrepreneurs pitch their business ideas to a panel of venture capitalists, known as 'dragons', who decide whether to invest. The video script describes a scene from this show, where Levi Roots is presenting his product to the dragons in hopes of securing investment.

💡Reggae Reggae Sauce

Reggae Reggae Sauce is the product that Levi Roots is promoting in the video. It is a Caribbean cooking sauce that he uses as the central focus of his pitch. The sauce becomes a symbol of Roots' entrepreneurial venture and the potential for cultural products to gain mainstream appeal.

💡Pseudonym

A pseudonym is a name that a person or group assumes for a particular purpose, which is different from their original or true name. In the script, Levi Roots reveals that 'Levi Roots' is his pseudonym, and his real name is Keith, adding a personal and humorous touch to his story.

💡Cottage Industry

A cottage industry refers to a small-scale production operation typically carried out at home or in a rural setting. Levi Roots initially makes his sauce in his kitchen, which is described as a cottage industry. The term is used to contrast with the mass production he aspires to achieve with investment.

💡Mass Production

Mass production is the process of producing large quantities of goods efficiently, usually through standardized machinery, in order to supply a wide market. The script discusses Levi Roots' plans to transition from making his sauce in a small kitchen to mass-producing it, which is a significant challenge for any small business looking to scale up.

💡Equity Stake

An equity stake refers to the percentage of ownership an investor has in a company. In the video, the dragons offer Levi Roots investment in exchange for a 20% equity stake in his company, which is a common arrangement in venture capital deals.

💡Royalty

A royalty is a payment made to the owner of a patent, copyright, or other property for its use. In the script, Levi Roots discusses a potential royalty arrangement with a meat company for the use of his sauce, which is a key aspect of his business model.

💡Business Plan

A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It is a crucial document for any entrepreneur. Levi Roots initially believes he does not need a business plan, but the dragons' scrutiny of his numbers and the need for a more detailed strategy become evident throughout the pitch.

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