Comments on: Dragon’s Den: The missing piece

By: Ryan

Ryan — Fri, 07 Dec 2007 04:43:00 +0000

Oh, and while I’m the subject…

At the end of the day, for all their posturing and “I never go in for les than 50%” the reality is they all are as they’re generally splitting the investment amongst themselves.

They each end up with only 10-20% which means now they all have to agree or their so called “power” is out the window.

By: Ryan

Ryan — Fri, 07 Dec 2007 04:41:00 +0000

"The 50% obesession is just being smart. If at all possible, have control of your investments."

<50% ownership != lack of control.

As many people have said before, if you take even a penny of someone's money they own you.

There are loads of ways to control a company without holding a majority ownership position.

i.e.
- Double check signing (investor must sign all checks too)
- Purchase authorization over certain amounts
- contractual obligations on how the money must be spent.

etc. etc.

By: Chris

Chris — Thu, 06 Dec 2007 17:00:00 +0000

I agree with you about the makeup of the dragons, but they're there to be on a TV show. The investment is just a side-line; Dragon's Den is supposed to make people watch the show first, educate them second, and provide capial third.

The 50% obesession is just being smart. If at all possible, have control of your investments. Now if it was me up there, I'd make sure I included the right to buy them back out to 20-40% to regain control at a pre-set price.

Chris (www.chrisdavies.ca)

By: Ryan

Ryan — Wed, 05 Dec 2007 13:26:00 +0000

Hey Jodi, Thanks for stopping by!

Interesting to hear the extra details of their offer – but also glad to hear you ultimate chose to bail on the deal.

Congrats – it sounds like things are really taking off for you :)

By: Jodi

Jodi — Wed, 05 Dec 2007 01:27:00 +0000

There was a missing piece that wasn’t put to air, but only hinted at: I would’ve needed large future investments of capital to finance inventory, and $50,000 wasn’t even close. The extra little push that made it an attractive deal was that they said future cash investment on their part would never reduce my equity in the company. That is very different than most venture capital groups, where every further investment is in return for another percentage. At the time of the filming, I had a good idea but it launched only a week before, so I only had $5000 worth of sales. Over the two months of negotiation time afterwards, my FIRM orders grew to twice the value of the dragon deal. So I did. Run away that is! Speaking of which, now looking for investment to finance that inventory… Look for the Homebox this friday on The Shopping Channel and in the spring at Indigo and Staples! Jodi
(www.sindenhome.com)
P.S. Hi, Bryce!

By: Ryan

Ryan — Wed, 28 Nov 2007 16:05:00 +0000

I’ve been ticking it over and haven’t come up with anyone yet… one person I was talking to suggested Stronach though…

By: Anonymous

Anonymous — Wed, 28 Nov 2007 15:41:00 +0000

any suggestions on WHO a new dragon or two could be though?? I agree, just can’t think of who would fit the “dragon” role better than the 5 egomaniacs already up there!

By: Bryce

Bryce — Wed, 28 Nov 2007 01:09:00 +0000

That woman was Jodi Sinden. I went to high school with her. We were good friends. I hope it works out.

I'm not saying you are wrong, I don't really know.

I guess I'm saying it is a small world.