|Brief Description||An invention that threads cables through cavity walls using magnets|
Sharon delivers a confident pitch to the Dragons, demonstrating her invention Magnamole which allows cables to be safely threaded between cavity walls. The Dragons certainly seem impressed by her figures: in dealing with a major telecoms company she has estimated that by supplying their engineers with the product she will save them £6.5 million per year in downtime alone.
Duncan Bannatyne is first to speak, exclaiming that her invention "almost seems too good to be true". He questions how much the item costs to produce and is pleased to learn that there is a large profit margin.
Duncan goes on to question why Sharon needs any money – if she has contracts and patents already why give out equity in her "fantastic company"?
But for Sharon the deal is not necessarily all about the money. She tells the Dragons that she is working 16 – 20 hours a day, seven days a week and she would like their help to take her company to the next level. She can currently only afford to employ somebody for one day a week and has to work days, evenings and weekends to get the job done, with only the support of her twelve-year-old daughter who she describes as her biggest fan.
But, despite the positive reactions from the other Dragons who describe the product as "ingenious" Peter Jones thinks he has spotted a potential flaw. He tells Sharon that as the product only needs to be purchased on one occasion then once she's hit the market demand will then dry up.
Sharon tells him she disagrees, as her next invention takes cables down the inside of cavity walls but first requires a purchase of Magnamole for it to work. With this strategy she is working towards longevity.
Sharon’s confident response causes Theo to laugh out loud and tell Peter "Well, that told you". Peter admits, "I think you’ve done amazingly well".
Deborah Meaden joins in the praise, along with Theo who tells Sharon that this is the first time an entrepreneur has come into the Den and all five Dragons' jaws have dropped.
Theo asks Sharon if she could wave a magic wand which of the Dragons would she choose to work with. Sharon admits that she would most like to work with James and Duncan. At this Duncan and James exchange a look and shake hands. But, Duncan tells her that they’re not making an offer yet, as the other Dragons will want to spoil their offer.
Theo is the first Dragon to step up and break cover, offering Sharon the exact amount and equity that she’s asked for so that he will act as her insurance policy against a bidding war from the other Dragons.
Next, in a rare moment of role reversal in the Den Duncan and James ask Sharon if they may go to the back of the room to discuss their offer. Duncan and James return to offer Sharon more money than she’s asked for - £80,000, but in return for 25% of the business.
Deborah is next to pitch to Sharon, matching Theo's earlier offer. She tells Sharon that she shouldn’t discount the other Dragons' experiences and that if the business needs more than the £50,000 she will provide the funds as long as she remains convinced by the business plan.
Peter Jones is next to speak and in an unusual move tells Sharon that Duncan and James with their background in electronics are best placed to take her business forward and so declares himself out.
Sharon now faces the tough decision of whether to accept more money in return for giving away more of her company.
She takes a moment at the back of the room to think things over and returns confidently telling Duncan and James that she's a businesswoman and would be stupid not to negotiate further. After initially asking them to lower their proposal to 20% equity she agrees to accept 22.5% equity, with widespread congratulations from the Dragons.
The deal done in the den: £80,000 for 22.5%.
Duncan Bannatyne and James Caan: £80,000 for a 22.5% stake in Magnamole.
Last updated: 22 July 2009
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