I understand how tense it must be but it was kind of funny when both of them started sweating profusely the minute the first Dragon (Peter) started grilling them lol.
@RunRex Well done. You have reached Dragon's Den Veteran status. I too have viewed the much coveted Jenny offer episode. Up until then I had thought it was simply a myth.
don’t talk about other companies or else peter jones will say “you should have come in and pitched 20% of that company” or “you should add this company into my deal”
Im not a businessman but why would you not want tech tycoon Peter Jones to invest in your tech company where the tech is being built? This pitch really messed with my head
I wish I knew. People are so strange. Getting any kind of deal in the den would be life changing, and still there is loads of decieving, lying, shady, greedy, and unprepared people coming in. Even after so many seasons!
Because that tech Tycoon would want a portion of the profit from that company and they aren't willing to do that. Understand, even if their product doesn't take off they hold the rights to technology that another company could use and have to pay for. Peter's mad because their not letting the investor in on the ground floor. I mean sometimes, it's better not to go with an investor especially if the owner knows the value of the technology...
These people were really ignorant. They basically said “we want to expand into the UK, so how about you give us some cash to do so and in return we will give you a small stake in our UK subsidiary business that has nothing of value, other than the cash you gave us”.
Honestly id give them a loan. It is safer than an equity stake. Also there is very little upside in an equity stake. Also the collateral of the loan should be the company in Denmark.
I don't know when this episode originally got aired..... But at least nowadays any software developer could write you such an app, with all the technologies available for anyone through cloud-based Software-as-a-Service. I am a developer and I write you such a thing in a couple of weeks (if not less).
yeah, a lot of app developers could throw something workable in a few days. any app can control light, sound and vibration on your phone if you allow it, and detecting sounds and comparing them is decades old technology.
iPhone now (I don't know for how long) has this built in as an accessibility feature and I'm sure android either has it as well, or at least there are free apps to do it.
Could be one for the "what were they thinking" bracket! Although I think they knew exactly what they were doing, and they got found out. And it sounds to me like there's a dominant partner in the relationship and what we heard was what he wants, not what both want.
@@armitosmt5753 it was "nice" though. They came in with a complete joke of an offer that basically highlighted that what they wanted was just a money bag to dip into without actually offering the investors any real incentive to get involved. It's the kind of Hubris that would have had them be laughed out of any closed doors meeting. He did a good job of letting them know how offensive the offer was without getting very angry, and gave them some valuable advice that may allow them to adjust their strategy.
Peter's eyes light up whenever he spots a problem and knows he's about to destroy someone and drama is about to go down. You can tell he lives for the drama 🤣🤣
"We can't change the company structure. It is how it is." -- Well you should be able to if you own the company! Braci has existed for 7 years - these two must know this pitch was completely naive.
They didn't have to change the company structure though,they could have asked for investment in the Danish company, why do they have to change anything? Typical case of not listening to what was said by the dragons
They are better to walk away. Why should they change anything? If the offer was viable to get a good return, that’s all that mattered. Jones just wanted the holding company so his other tech companies could take advantage. Naïveté to believe yay have to do what the vampires want.
They've had this for at least 20 years. I got hearing aids when I was about 12 or 13 and they had all this stuff minus the smart phone part. But they had the system that alerted doorbells and phone calls visibly and connected to the TV and landline so the tv or phone flashed
The fact after all that critism they stand there and one of them says they will have no regrets and the dragons don't get the structure shows they weren't listening at all and only think about themselves at all times. You want someone else's money you can't pitch why it's great for you.
The idiots thought they were getting free publicity but instead they lost a big chance to have someone like Peter potentially onboard. I actually don’t think the tech was that amazing anyway to even get an investment from him with the right structure.
I'm not a business person, im in business clubs in highschool and just that is enough to know that investers want to invest in the parent company not a distributor
Just realised as well - they went all about the sound device, but not the patents the uk division is working on at all. I get they're just looking for distribution of the former, but to me it was very disingenuous not to talk about the latter as well
None of this stuff is new. I've been installing Hikvision for years who have a vast range of products that can all be controlled under 1 app and who are huge!
They stuck to their guns, even after being called out lol. They really, even as they walked out, acted like they weren't looking just for a cash injection on the distribution side lol smh
also, there's actually nothing stopping them later down the line from the parent company reforming to become a distributor / developer hybrid and essentially dissolving the subsidiary company and the dragon would be screwed over.
What really surprises me is that they seemingly didn't anticipate it at all. Even someone whose entire expertise is solely based on watching some Dragon's Den episodes could have easily foreseen this exact outcome.
@@jholworld Right, but the only issue they saw was that it's complex. That's wrong on two counts -- first, it's not complex at all; second, the "complexity" isn't the issue.
The traffic flow signal thing was never going to work. I think this is more unsuccessful because you had two tech entrepreneurs with a decent idea, and they shot themselves in the foot. If they were offering part of the holding company, they might have gotten an investment
@@RGBNathan The other issue is it's a fairly dumb idea. The kid who was doing all the talking was banking on his pedigree but what they have built is easily replicable and cannot be patented.. It uses an always on microphone with a python package on the backend to identify the sound. Most computer engineering graduates would be able to give you a functional prototype within a week.
How to lose a pitch in 3 words. 'UK distribution rights'. Honestly it even gets boring. Too often people come in, pitch that and then the rest of the pitch is just the dragons, rightfully so, being like 'why on earth would I do this?'
Do people not watch this show? An investment in a distribution company or part of the company never goes down well in the den! Why don't people learn?!
Having smaller share in something big better than having major shares in something small, Peter will definitely could have been the one make them go globally, he have the connection, reputation to make them become very successful. They didnt do thier homework
So they came in just finding someone to work as their UK based salesperson, and have the audacity to ask the dragons to give THEM money to get the job 😂 why not just offer a small percentage of the holding company so they can get the dragon on board, penetrate the UK market, use the dragons expertise for the global market, everyone's happy
YUP, dragons never seem to fall for one of those uk sub-company distribution-only type of deals. But product seemed nice and helpful and if only they offered a piece of the parent company, they would have got some offers on the table.
Too greedy. They want an investor to give them money to help get the product into the market, but don't want to give away any ownership in the actually valuable part.
Interesting concept. I did however over estimate the functionality of the product. I was expecting it to "hear" different sounds in the room in realtime and visualize them. There is very little which sets them apart from other products like the Ring doorbell and hive etc. For that reason, I'm out.
It’s ridiculous how the guy didn’t own his mistake and blame the dragons… dude, they’re the ones with hundreds of business and billions of dollars. Please, just be humble and admit it.
They likely could not dilute shareholders in the parent company--tech is expensive and those shareholders for round a and b probably threw millions in to these guys. The shareholders also probably want to wait a few years to get some real dough back before new shareholders, like the dragons, can come in because by then, the dragons won't even want to by shares in the parent company; the shares will be 100x more valuable.