David Lees entered the Den in 2005 seeking £225,000 for 15 percent equity stake in his TV stand business, Mode Al. Mode Al design and manufacture plasma stands and plasma related mounting systems primary for UK but worldwide also.
Mr Lees explained to the Dragons that in three years he would turn over around £7million, however Doug Richard was very concerned.
He did not think David would be able to achieve this.
The investment would be used for tooling and capital items to increase productivity so they can expand in European and international markets.
The stands cost around £260 to make and he sells them for £582.
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He told the Dragons’ that he aimed to sell over 300 units that year.
In 2002, he made a profit of £23,000. In 2003, his profit was £47,000 and in 2004, his profit was £67,000.
Mr Lees added: “According to my estimations, in three years we should be turning over about £7million a year.”
Doug Richard was shocked at the estimation.
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David agreed to give them 25 percent equity each, however the deal eventually fell through and they did not go into partnership.
With Dragons’ Den recently coming to a close for another series, it is interesting to look at previous pitches that have received investment, and one’s that have not.
Despite not leaving with any investment, many entrepreneurs have gone on to do great things with their products.
For example, Tangle Teezer, a hairbrush company, is now worth £200million. Rob’s rejection has also been one of the biggest success stories in the show’s history.
Dragons’ Den is available to watch on BBC iPlayer.
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