Dragons’ Den cast blown away by pitch for £125,000 – ‘My toughest negotiation in the Den’

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A fierce bidding war breaks out in the Dragons Den

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Brian Smillie and Euan McCreath pitched on Dragons’ Den in 2018 seeking £125,000 for four percent of their business, Beezer. Beezer offers the ability to create one’s own mobile app using an online tool. Once the app is built and operational, it can be sent directly to the users across a number of platforms, including SMS, social media or email. This enables the user to complete bypass app stores.

The entrepreneurs blew the Dragons’ away after rejecting two Dragons’ offers, despite receiving exactly what they had asked for.

Mr Smillie explained he is majority shareholder within the business and has worked tirelessly to get it up and running.

He said: “I went out and raised £800,000 to get things going and put £150,000 of my own money into the business. I’ve sold my two houses, my Banksy art collection – I’ve put everything into this.”

Beezer had £200,000 in the bank and they burn around £30,000 a month. However, the aimed to have cash flow coming in from deals they had agreed.

Mr McCreath stated that by the end of the year, they should have £900,000 coming in. Their biggest revenue should have been coming from Wix.

He believed the business could be worth £18million in 12 months time.

After hearing the potential, all the Dragons expressed their interest.

Touker Suleyman said: “I know what I can do. I’ve done it for my other tech businesses – it’s put them in front of the right people.

“So I’ll make you an offer – all of the money for 10 percent, and if I get my money back I’ll go down to four percent.”

Tej Lalvani thought what they had built was “very clever”, he made the pair an offer for all the money eight percent.

Additionally, Deborah Meaden loved that the product was “destructive”.

She made them an offer for all of the money for six percent of the business.

Peter Jones said: “I believe you guys have something so I’ll make you an offer for all of the money, but on the base of the fact that I hold the golden key for unlocking the value for you, I want 15 percent of the company.”

Mr Smillie said: “I don’t know whether I should cry or fall down.”

Brian and Euan McCreath got four offers, however all higher equity than they asked for.

Brian thanked the Dragons’ for their investments but explained that he came today specifically for Deborah and Peter.

He asked Peter if he could drop down his equity to six percent as he wanted to do a deal with him, however Peter said he will drop down to 10 percent if he gets his investment back.

Brian explained he had to protect his share holders position, and can only afford to give away five percent, if any investors were willing to do this deal.

Tej agreed to do the deal and take five percent equity in the business, however Mr Smillie declined his offer. He also declined Touker’s offer.

Peter said he was “feeling a little strange” about the negotiations due to the fact Brian had alienated other Dragons’.

He did not like the way the handled the situation and stood by his offer of 15 percent dropping to 10.

Brian responded: “Based on the fact we have two Dragons’ that have put in two separate offers and not offered to make a combined offer, I’m going to go with my gut on this. My gut says go with you Peter. I am 100 percent accepting your offer.”

Peter said: “Fantastic. That was by far my toughest negotiations in the Den. That’s how I’m feeling right now.”

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