I got selected to pitch on the Dragon's Den

[Feruk]

Originally posted by Seth1968
Many people who don't get an offer or refuse one, will often get an offer from other investors who watch the show. These offers are typically much better than the Dragons.

Bingo. I'd treat the TV show as incredible free advertising.

[Myrrinda]

My cousins went on the show and pitched their Camelina oil. The company is Three Farmers by Canpressco.

They had originally booked an appearance, and if I remember correctly, one of them had met Brett Wilson before going on the show, and he suggested they wait until they had larger distribution and sales. They waited a year or so, increased distribution across Canada, and went in there with a really strong presentation. Arlene ended up investing, and they've had pretty good success with her. They've now expanded into the US, they've increased their distributors in Canada, and they've made appearances on tv. One of them is a red seal chef, so she goes on various shows across Canada doing cooking presentations with the oil. She was on Breakfast Television a couple weeks ago.

So basically, if you have a good presentation, a reasonable valuation with support for the number, and seem driven, you'll probably have a good chance.

Edit: Here's their pitch. http://www.cbc.ca/dragonsden/pitches...s-camelina-oil

[cornelius85]

Originally posted by Feruk

Bingo. I'd treat the TV show as incredible free advertising.

Definitely not free, but well worth the money. It will probably cost me about 4k all said and done with flights, shipping my product, meals, and hotel. To be exposed to that many potential customers it is an expense I am fine with.

[Seth1968]

Originally posted by Feruk

Bingo. I'd treat the TV show as incredible free advertising.

Wow. Someone who gets it.

In other words OP, go on the show and refuse all offers. Drag it out as long as possible.

You'll get calls from other investors that won't soak you like the dragons.

[msommers]

Unless you get them all on board, that's a lot of contacts! For for 4k for marketing/advertising on national TV to describe your product, might as well. The dragons also know people come on just for advertising purposes but they also gouge the shit out of people too--kevin being the worst offender.

[DustanS]

.

[cornelius85]

Originally posted by DustanS
Congrats Greg!

The exposure that will be gained will be beneficial regardless of getting a deal from the dragons. Maybe a private investor will contact you offering you a partnership, or perhaps it will help you break into the American market.

Either way I admire your consistency in the industry, and you've proven yourself to be a respected Canadian supplier. It's a tough business to be in!

Best of luck and I have it pvr'd so I won't miss it!

Thanks Dustan,

The American market is something I am not even interested in. After doing a show down in San Diego the market is too cut throat out there and margins are very low. There is a lot of competition out there as well as a lot of people still use melamine as it is so cheap. After working with the plastic I can't see how people still use melamine.

[variance]

Does Dragon's Den have the same fine print obligations that Shark Tank has?

Shark Tank is fully aware that some people just come onto the show to get free advertisement and as such they make you sign an agreement to give 5% of their company or 2% of any future royalties to just appear on the show. A pretty steep price for "free" advertising. The article below mentions they might be moving away from this model, but I haven't seen anything final yet.

http://www.forbes.com/sites/jjcolao/...ay-absolutely/

[Disoblige]

5% or 2% royalty just to be on the show?!

LOL, that sucks.

[cornelius85]

Originally posted by variance
Does Dragon's Den have the same fine print obligations that Shark Tank has?

Shark Tank is fully aware that some people just come onto the show to get free advertisement and as such they make you sign an agreement to give 5% of their company or 2% of any future royalties to just appear on the show. A pretty steep price for "free" advertising. The article below mentions they might be moving away from this model, but I haven't seen anything final yet.

http://www.forbes.com/sites/jjcolao/...ay-absolutely/

From everything they have provided me thus far there isn't anything like that in place.

[Schwa]

You don't have to give equity to go on the Den. And also for Shark Tank Mark Cuban reversed that deal for everyone who pitched on the show, so now they don't take equity either.

Note that even though you go into the studio and tape there is no guarantee that you will make it to air if your pitch is boring, etc.

I would still suggest you take any deal offered to you to increase your chances of making it into an episode, and then just back out during the due diligence process.

[microgrinder]

Originally posted by variance
Does Dragon's Den have the same fine print obligations that Shark Tank has?

Shark Tank is fully aware that some people just come onto the show to get free advertisement and as such they make you sign an agreement to give 5% of their company or 2% of any future royalties to just appear on the show. A pretty steep price for "free" advertising. The article below mentions they might be moving away from this model, but I haven't seen anything final yet.

http://www.forbes.com/sites/jjcolao/...ay-absolutely/

This information is old and no longer true for anyone going onto shark tank. (No longer true for anyone who has been on ST in the past as well)

DD has never had a clause like this.

The exposure is good, likely worth the $4k, assuming they air it and its a viable business

[RX_EVOLV]

$4000 is a good deal for the exposure. Doing one trade show alone will cost you a few grand easily. Pitching to the local angel investor community will cost for $1000+. We spend over $2000 just to get a half page ad in a journal magazine.