This week saw five pitchers fighting to each get a much-needed cash investment from our Dragons.
First in the Den was David, who was offering a 10% equity stake for a R1.2 million cash injection for his company’s fuel saving design, which he punts as the next big thing in the heavy vehicle sector. Gil seemed positively puzzled by the pitch and said as much. “When you first started speaking, it was like watching a foreign language film without the subtitles.” After locking in on the fact that the business had spent R2 million in two years and had sold only two units, Lebo excused himself, clearly not convinced about demand and product financials. When Vusi eventually made a R1.2 million offer for a whopping 70% stake in Diesel Gas Africa, a perplexed David elected to walk.
An ill-prepared Mandisa was next to pitch. After stuttering through a print media digitising concept she touted as the first of it’s kind, it became all too clear she hadn’t done her research. The angry, fire-breathing Dragons took turns admonishing her for not knowing her story. “You came here totally unprepared and you have taken the space of someone else we could have potentially backed,” Polo said, effectively snuffing out the last chance the head of Digital Solutions had to find the R500 000 funding for a 25% equity stake she so desperately needed from the Dragons.
Rudzani and Warren’s rainbow nation approach to business partnership seemed to be a big hit with the panel. However, the same can’t be said for their concept. The two entrepreneurs were seeking a R3.5 million investment for a 35% stake from the Dragons, to get their all in one internet solution, One Cloud, off the ground. After failing to explain to tech guru, Vinny exactly how they were going to go about executing their vision, it seemed pretty clear they would be going back home empty-handed. But not before Vusi fired off a stern “This is a cloud with no rain.”
Ekhaya.Co’s one-stop rental app was so innovative, it had three Dragon’s scrambling to invest. Justin was looking for R300 000 for a 5% equity stake in the business, but by the end of his pitch, he had a three Dragon total of R1.3 million for a 25% equity; R500 000 for 10% from Vinny, R300 000 for 5% from Lebo and R500 000 for 10% from Gil. After mulling things over for a bit, the Ekhaya CEO expressed how being over-capitalised so early, was not ideal for the Cape Town-based Silicon Valley start up and decided instead to accept Vinny’s R500 000 for 10% offer.
After handing out phones and laying down his 20% equity for R500 000 investment pitch, would entrepreneur Matthew have “a voucherful day”? It would seem not. After admitting the only difference between his product and existing global app, Voucher Cloud, is design, the Dragons kept their money in their pockets. Matthew’s revelation that the R500 000 he was asking for would be used solely to market his app left Vinny stunned. “If you have to market an app, you’re already losing. The value proposition needs to be so strong, people tell their friends about it.” What about Matthew’s 330 followers on Twitter though? Not nearly enough, according to our Dragons!
Last in the Den was Guduza, who was asking for R1 million for a 25% stake in his company. His product? A home management system that connects hardware and software from anywhere in the world. Despite making a great impression for being a potent mix of crazy inventor and entrepreneur, Guduza’s product did not find an investor. “Your system is not unique and it is a little too pricey for South Africa’s lower middle class. Global patent issues will also likely prevent the project from taking off,” Vinny said.
Congratulations to Ekhaya.Co for striking up a partnership with tech guru Vinny Lingham. After that polished, concise pitch and it is clear that this relationship is headed for the stars.
Follow us on Twitter and Facebook and be part of the Dragons' Den SA conversation.
First in the Den was David, who was offering a 10% equity stake for a R1.2 million cash injection for his company’s fuel saving design, which he punts as the next big thing in the heavy vehicle sector. Gil seemed positively puzzled by the pitch and said as much. “When you first started speaking, it was like watching a foreign language film without the subtitles.” After locking in on the fact that the business had spent R2 million in two years and had sold only two units, Lebo excused himself, clearly not convinced about demand and product financials. When Vusi eventually made a R1.2 million offer for a whopping 70% stake in Diesel Gas Africa, a perplexed David elected to walk.
An ill-prepared Mandisa was next to pitch. After stuttering through a print media digitising concept she touted as the first of it’s kind, it became all too clear she hadn’t done her research. The angry, fire-breathing Dragons took turns admonishing her for not knowing her story. “You came here totally unprepared and you have taken the space of someone else we could have potentially backed,” Polo said, effectively snuffing out the last chance the head of Digital Solutions had to find the R500 000 funding for a 25% equity stake she so desperately needed from the Dragons.
Rudzani and Warren’s rainbow nation approach to business partnership seemed to be a big hit with the panel. However, the same can’t be said for their concept. The two entrepreneurs were seeking a R3.5 million investment for a 35% stake from the Dragons, to get their all in one internet solution, One Cloud, off the ground. After failing to explain to tech guru, Vinny exactly how they were going to go about executing their vision, it seemed pretty clear they would be going back home empty-handed. But not before Vusi fired off a stern “This is a cloud with no rain.”
Ekhaya.Co’s one-stop rental app was so innovative, it had three Dragon’s scrambling to invest. Justin was looking for R300 000 for a 5% equity stake in the business, but by the end of his pitch, he had a three Dragon total of R1.3 million for a 25% equity; R500 000 for 10% from Vinny, R300 000 for 5% from Lebo and R500 000 for 10% from Gil. After mulling things over for a bit, the Ekhaya CEO expressed how being over-capitalised so early, was not ideal for the Cape Town-based Silicon Valley start up and decided instead to accept Vinny’s R500 000 for 10% offer.
After handing out phones and laying down his 20% equity for R500 000 investment pitch, would entrepreneur Matthew have “a voucherful day”? It would seem not. After admitting the only difference between his product and existing global app, Voucher Cloud, is design, the Dragons kept their money in their pockets. Matthew’s revelation that the R500 000 he was asking for would be used solely to market his app left Vinny stunned. “If you have to market an app, you’re already losing. The value proposition needs to be so strong, people tell their friends about it.” What about Matthew’s 330 followers on Twitter though? Not nearly enough, according to our Dragons!
Last in the Den was Guduza, who was asking for R1 million for a 25% stake in his company. His product? A home management system that connects hardware and software from anywhere in the world. Despite making a great impression for being a potent mix of crazy inventor and entrepreneur, Guduza’s product did not find an investor. “Your system is not unique and it is a little too pricey for South Africa’s lower middle class. Global patent issues will also likely prevent the project from taking off,” Vinny said.
Congratulations to Ekhaya.Co for striking up a partnership with tech guru Vinny Lingham. After that polished, concise pitch and it is clear that this relationship is headed for the stars.
Follow us on Twitter and Facebook and be part of the Dragons' Den SA conversation.