|Pitching||The Anyway Spray|
|Brief Description||Invention that allows every last drop of liquid to be used in multi-directional household product sprays.|
Michael gives a fluent pitch for his new invention that allows every last drop of liquid to be used in multi-directional household product sprays.
Theo Paphitis asks whether he has a patent on his dip tube and he replies that 24 patent applications covering 48 countries have been lodged since 2007 and that at this stage he cannot be sure if they will be successful or not. He adds he has to date spent £100,000 on the process.
Peter Jones thinks Michael has a neat product but is puzzled as to how the entrepreneur can justify a company evaluation of £2.5million. Michael's sure-footed response is to point out that his product meets the needs of the consumer.
Deborah Meaden asserts "I completely get the issue" but is concerned he has already spend so much on the patent without actually securing it.
Duncan is doubtful that the problem Michael is addressing is that important and suggests that unless the manufacturers of sprays buy or licence it from him the product is worth nothing.
Michael reports that he has approached five companies and they are all in testing but that this may take some time. Digging further into what costs would be passed on to the manufacturer, Duncan is dissuaded further by the revelation that it would be a further £20,000 on a production line and he declares himself out.
James Caan is not convinced either consumers or manufacturers see this as a major problem and if manufacturers did they would already be addressing it. He doesn't see it as a viable investment opportunity and declares himself out.
Deborah adds that she believes Michael is presenting a wild gamble that she is not prepared to take. Deborah declares herself out.
Peter Jones is concerned that it will increase manufacturers' costs and is also troubled by the patent issue.
Michael disagrees, pointing out that his invention will reduce costs by up to 6 pence a unit, particularly with aerosol cans. He goes on to tell the remaining Dragons that his product may make the disposal of aerosols easier as it negates the need for flammable gasses.
Peter concedes that the inventor has a point but the uncertainty over the patent is his real stumbling block. The Dragon is nonetheless willing to put up half the money Michael is after for a 20% stake.
Theo is the only Dragon left who can match Peter's offer and his reservations are over the patent and the apparent slowness on the part of manufacturers to take up his idea.
Michael replies that if a Dragon like Theo was talking to the necessary CEOs things might move forward more quickly.
Theo then matches Peter's offer. It means Michael has to surrender 40% of his company and he is not prepared to do that. Michael is so confident his business will be viable that he promises to give the Dragons all their money back after three years if it hasn't succeeded.
On this basis Peter is willing to surrender 5% of his equity and Theo is happy to follow suit.
However Michael is still unhappy with giving away a 30% share of his company and says he is would not want to go above 10%.
The Dragons suggest meeting Michael halfway, with a money back guarantee attached. A deal at 20% is done.
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