Discussion
At least 2 schools of thought.
1. there is far better ways of raising money than from those egotistical self centered, opinionated millionaires (!). If I was serious about raising cash, then this would not be the first port of call. And as to their expertise in helping thereafter, they have multi-million £ companies to run...you aren't going to get much of their time..
2. However a company I know went on the Den, got funding in principle, however after the show could not agree terms with Mr Dragon... but the PR they got from the show did them no harm at all...
Also - if you have no IPR or protection over your idea/business (which I believe in yours you don't (happy to be corrected)) you are advertising your great idea, which then anyone else could copy...
The choice is yours!
1. there is far better ways of raising money than from those egotistical self centered, opinionated millionaires (!). If I was serious about raising cash, then this would not be the first port of call. And as to their expertise in helping thereafter, they have multi-million £ companies to run...you aren't going to get much of their time..
2. However a company I know went on the Den, got funding in principle, however after the show could not agree terms with Mr Dragon... but the PR they got from the show did them no harm at all...
Also - if you have no IPR or protection over your idea/business (which I believe in yours you don't (happy to be corrected)) you are advertising your great idea, which then anyone else could copy...
The choice is yours!
Edited by Minnsy on Sunday 27th April 16:53, cos I can't spell on Sondays...
Edited by Minnsy on Sunday 27th April 16:54
friend went on dragons den, some nice guy in the team then went out and registered all the possible websites for his name, to save them for him and offered to sell it back for a lot more than friend was willing to pay, he got kicked off - guy sells jerked meats and wore tartan with a pink mohican, lets say they tore him lots for not wearing a suit
I've been watching reruns on Dave tv and can't believe how egotisical they all are. Fair enough they know aht they are talking about....but ffs they are there for help so they won't know all the details the dragons would. THye have an idea and wany help in taking it further....but the dragons don't want to take any risks at all.
I'd like to see the dragons on The Apprentice. Maybe Sir Alan can wipe the smug look off of their faces.
I'd like to see the dragons on The Apprentice. Maybe Sir Alan can wipe the smug look off of their faces.
M400 NBL said:
I've been watching reruns on Dave tv and can't believe how egotisical they all are. Fair enough they know aht they are talking about....but ffs they are there for help so they won't know all the details the dragons would. THye have an idea and wany help in taking it further....but the dragons don't want to take any risks at all.
I'd like to see the dragons on The Apprentice. Maybe Sir Alan can wipe the smug look off of their faces.
Sorry, but I don't rate Sir Alan, or any of his chosen apprentices either! I'd like to see the dragons on The Apprentice. Maybe Sir Alan can wipe the smug look off of their faces.
Frankly its amateur night for wacky inventors, anyone with a credible business plan and model would secure equity funding at a much cheaper price than on dragons den and i'd question the "value" of the panel in any case. One owns casinos, Rachel Elwoods company went bankrupt under questionable circumstances etc. I would agree they are self-publicists, i suspect Duncan B has been paid more in appearance fees than he has actually invested.
Your first port of call should be BusinessLink, they can put you in touch with your local enterprise council (or whatever government quango it is now) and also your local business angels network. If you type in UK business angels into google you will find near the top a directory of business angel funding.
What sort of funding strategy you need depends on what your idea is, what stage you are at and how much you need. Generally Angels are most useful in the 250K to 500K at the startup phase when your product or idea needs developing to a stage where it can be commercially assessed. If you need less than 150K your best bet is try and find one or more investors you know in a consortium as generally BA's look for a bigger return i.e the next facebook.
I would advise you to work on your presentation and plans in advance, contrary to popular belief you don't need an epic tome of a business plan and a simple powerpoint presentation with the salient points will often get more interest, however for your own benefit i would speak to BA about joining a local directors group and seek out some mentoring on both your business planning, strategy, and presentation skills. Investors invest in people not ideas, its their belief in your ability to deliver the idea not the idea itself that they are lookin for, therefore the more credible and investable you are the cheaper your equity will be.
If you've learnt anything from Dragons Den its to know your figures back to front, Dragons den is theatre but genuine VC pitches can actually be a lot more brutal.
If at all possible try and get your idea pitched to several people, you don't want to take the first offer you can get, and also make sure whatever angel you take offers value as well as cash. Angels are as expensive as founders in terms of equity therefore they should bring some business value that compensates for your loss of equity, whatever area you are weak on try and plug that with a BA experienced in that area. For example if you are a technie try and pick up someone with a MBA or sales and marketing background which will make you look a stronger team if you need to go to Series A funding.
Make sure you value your investment properly, as a rule of thumb i would generally not want to give a angel more than 25 percent equity for up to 500K. that equates to a post investment business valuation of 2m which for most tech related firms is quite fair, we are only giving away around 30 percent for some 25M USD in our current Series A round, principally because we have a rock solid product that was developed over 7 years and a board and VP management dream team of industry expertise.
Also i strongly advise you take independent legal advice from a decent VC experienced law firm, there are a lot of different stock structures and terms, from preferential stock to common stock with all sorts of buy out clauses. Its not as simple as just giving 25 percent and imagining you have control of the company.
Theres a number of related websites for startups discussing BA's and VC issues on the web, mostly they are Silicon Valley related but its all good advice, so my suggestion would be you hit google and try and get hooked in to some networks before you do a thing.
In answer to your original question about the den, my feeling is if you want to do what that wacky chinese bint did for her car company and just go and get some free publicity then its marketing gold, however if you have a credible investment in something you don't want to disclose until its ready i would stick to more conventional channels. Its the equivelent of the Stone Roses booking an audition on simon cowells talentless fest.
good luck!
Your first port of call should be BusinessLink, they can put you in touch with your local enterprise council (or whatever government quango it is now) and also your local business angels network. If you type in UK business angels into google you will find near the top a directory of business angel funding.
What sort of funding strategy you need depends on what your idea is, what stage you are at and how much you need. Generally Angels are most useful in the 250K to 500K at the startup phase when your product or idea needs developing to a stage where it can be commercially assessed. If you need less than 150K your best bet is try and find one or more investors you know in a consortium as generally BA's look for a bigger return i.e the next facebook.
I would advise you to work on your presentation and plans in advance, contrary to popular belief you don't need an epic tome of a business plan and a simple powerpoint presentation with the salient points will often get more interest, however for your own benefit i would speak to BA about joining a local directors group and seek out some mentoring on both your business planning, strategy, and presentation skills. Investors invest in people not ideas, its their belief in your ability to deliver the idea not the idea itself that they are lookin for, therefore the more credible and investable you are the cheaper your equity will be.
If you've learnt anything from Dragons Den its to know your figures back to front, Dragons den is theatre but genuine VC pitches can actually be a lot more brutal.
If at all possible try and get your idea pitched to several people, you don't want to take the first offer you can get, and also make sure whatever angel you take offers value as well as cash. Angels are as expensive as founders in terms of equity therefore they should bring some business value that compensates for your loss of equity, whatever area you are weak on try and plug that with a BA experienced in that area. For example if you are a technie try and pick up someone with a MBA or sales and marketing background which will make you look a stronger team if you need to go to Series A funding.
Make sure you value your investment properly, as a rule of thumb i would generally not want to give a angel more than 25 percent equity for up to 500K. that equates to a post investment business valuation of 2m which for most tech related firms is quite fair, we are only giving away around 30 percent for some 25M USD in our current Series A round, principally because we have a rock solid product that was developed over 7 years and a board and VP management dream team of industry expertise.
Also i strongly advise you take independent legal advice from a decent VC experienced law firm, there are a lot of different stock structures and terms, from preferential stock to common stock with all sorts of buy out clauses. Its not as simple as just giving 25 percent and imagining you have control of the company.
Theres a number of related websites for startups discussing BA's and VC issues on the web, mostly they are Silicon Valley related but its all good advice, so my suggestion would be you hit google and try and get hooked in to some networks before you do a thing.
In answer to your original question about the den, my feeling is if you want to do what that wacky chinese bint did for her car company and just go and get some free publicity then its marketing gold, however if you have a credible investment in something you don't want to disclose until its ready i would stick to more conventional channels. Its the equivelent of the Stone Roses booking an audition on simon cowells talentless fest.
good luck!
lambogenie said:
In answer to your original question about the den, my feeling is if you want to do what that wacky chinese bint did for her car company and just go and get some free publicity then its marketing gold, however if you have a credible investment in something you don't want to disclose until its ready i would stick to more conventional channels. Its the equivelent of the Stone Roses booking an audition on simon cowells talentless fest.
You do know she's a PH'er don't you, and that she owns at least one branded missle launcher...! 
Gassing Station | Business | Top of Page | What's New | My Stuff