‘Your pitch was outrageous’ Dragons’ Den cast ‘insulted’ over pitch for £250,000

Dragons’ Den: Entrepreneur’s pitch called ‘outrageous’

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Entrepreneur Glen entered the Den in 2012 looking for an investment of £250,000 for 30 percent equity in his business, Camping bugs. Camping bugs designs, manufactures, delivers and installs buildings that are leased to camp sites and hotels. They can also be used as beach huts and garden offices.

Glen owns a timber building manufacturer and usually has spare timber left over from other products. By using this spare wood, he can keep costs down.

The production cost would be between £800 and £1,500. He told the Dragons the company had already manufactured around 50 camping bugs and these had been leased out already.

Deborah Meaden thought this was “incredibly great value”.

When asked about his investment request, Glen explaining he needed to “upgrade some of the production facility”.

“If we don’t lease any and put them on campsites, your money will stay in the bank and not get touched.”

Peter Jones questioned Glen about his other business. Glen explained that he manufactures timber buildings, sheds, log cabins. The business is valued at “a couple million pounds”.

Glen could do this himself however he said the investment will help him lease the product and get it to market quicker than he usually would. His team makes around two to three units a week.

Confused, Peter said: “So your other business is producing all of the stuff that camping bugs needs with my money?”

Theo Paphitis added: “What makes you think anyone is going to give you £250,000 for something that’s got hardly any assets in it?

“All it is building some sheds and then if you do get orders for your sheds, the money is going to go to your other company, and my money is going to disappear.

“Why do you think that’s credible?”

Glen explained that it is credible because for everything £1,000 invested, the company will be selling the product for between £5,000 and £7,000. However, Theo disagreed and told Glen that he couldn’t invest.

He continued: “You can’t, because if you could, you would be making them day and night and smoking a cigar on a Caribbean beach.

“There’s no business model that makes any sense except for yourself. I’m out.”

Duncan Bannatyne wanted to know about Glen’s lease history however Glen told him that that he had not leased any out. Duncan could not invest.

Deborah thought it was “insulting” that Glen came into the Den asking for £250,000 on a separate business without a track record and no basis in which anybody in their right mind would ever consider investing.

“I won’t be investing, I’m out.”

Hillary Devy thought the pitch was “outrageous”.

She added: “I think your business model is preposterous. I just can’t say anymore, I’m out.”

Peter asked Glen if he would be open for a conversation about him investing in his other business that is valued at £2million.

However, Glen said: “What would you bring to that business that would help?”

In shock the Dragons’ laughed.

Peter concluded: “I don’t really know what to say. You really should be coming in pitching the whole business, but you didn’t want to do that because you want to keep it all for yourself.

“This is definitely not investable so I’m out.”

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