Last night’s Dragon’s Den was again very informative as there were lots of lessons to draw out. Here is my take on the decisions taken last night. Again - they are just my view as an Angel Investor and I hope you find it useful.

The very first business presented was a brilliant Entrepreneur who had come up with a number of inventions. The Dragons decided not to back this enterprise as the business woman who presented was all over the place and gave a very bad presentation. I looked at her pitch and just felt that she was not backable. I would imagine an investor would have a horrendous time trying to get information from her. Having said that, I think that someone could work with her as a mentor and get her to a stage where she was investable as she clearly demonstrated business acumen and she was full of honesty and integrity.

The Diamond Geezer (selling jewellery online) business presentation was equally bad. He made a big presentation when a small one with a few facts would have worked. He came across badly. The figures behind his business were staggering and it took Peter Jones to realise just what the business potential was. James Khan also found out that the business had a positive balance sheet and therefore there was a very low risk profile on the business.

He was made an offer for the full amount he wanted (£255,000) but the Dragons had asked for 40%. I was really delighted when he turned the offer down. I am sure some of you will think I am crazy for saying this - especially as an investor myself. I strongly believe in doing the right deal for everyone involved. You are trying to enter a partnership with someone over a long term. Screwing them is not conducive to that objective. In this instance the Dragons were looking to invest in something with a massive upside for them - but very little downside. I felt that the money the entrepreneur had already put in and the fact that he was on Page 1 of a Google search for Diamond Engagement Ring justified a higher valuation than around £600,000. Then when you add the fact that he was throwing in freehold property and writing off a loan for £150,000 - you felt it was daylight robbery.

I have always had a problem with the way sometimes deals are done in the Den. The whole set up works against the Businesses pitching and they are put under enormous pressure to accept a deal.

Despite my comments above, I totally shared the dragons outrage at the businessman who came up with the idea for control TV (limit the amount of TV your children watch through tokens). He already had a great business making a profit of £300,000 and yet wanted the Dragons to put £150,000 into his new business. He had only put in £2,000 himself for 85% of the business. In my opinion this is immoral. Despite having his own money - he was asking someone else to shoulder all the risk - whilst he would take most of the gain. People like him do make me angry!

Finally, the fashion designer - not one I would have backed  but well done Peter Jones. I have to be honest and say it was her charm that won the investment. The business on its own did not stack up. But well done to her - I really hope she succeeds - I liked her.

Your views?

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