BANKER REACTS – Dragon’s Den Pitch – BBC NeoWalk – Capital Raises – Raising Capital
Hi everybody, this is Natumars. We’re going to react to an episode of Dragon’s Den, the Canadian version of Shark Tank. Basically, where a bunch of investors grill a founder on their company and as the founder of raises. com, we’re going to take a look and we help people raise capital for assets. A lot of it is institutional, so it will just be a different perspective on some of this mass market glitz and glam.
So let’s take a look and see what they have going on. So this is More than just a disability aid. About, uh, disability. And when people look at you, they just focus on the walking stick. Lindsay’s sticks aim to encourage people to look beyond their users. And she’s hopeful that the dragons will not only buy into the idea, but also her as well.
I think The dragons will see me as an investable person, because I’m the only person in the world doing So, see me as an investable person. One thing I noticed is, when the deals are like, early stage, or they’re small, or there’s barely any revenue, I noticed that people focus more on the individual. Uh, well I guess two cases.
If somebody is raising money for a fund, where there’s no deal in sight, it’s really just an idea and a mandate. Or they’re raising money for an early stage company that doesn’t have proven revenues, then the person matters way more than the deal. But I noticed that if there’s an amazing deal with amazing numbers, like 80 percent profit margin, amazing cash flow, high valuation, and good systems, the person matters, but the business also matters.
So if you’re leading with the person, I’m wondering if the revenues are that good just initially. But let’s see. What I do. And that’s true.
And you know, it’s like, you know, it’s a mass market thing. You see the songs, the emotions and all this, but really, I don’t know. Like it’s really about what’s the cash, right. And what the cash flows of the company. That’s really where everyone’s mind should be at. And, you know, a lot of this preamble is because of the sales, the marketing, and
How can you not listen to somebody on a wheelchair? Like, just from a marketing perspective, I think that would really resonate to their target market. Hello, Dragons. My name’s Lindsay, and I’m here today asking for an investment of 80, 000 pounds for a 15 percent share in my company. 80, 000 for 15%. So, yeah, that’s a pretty, um, small valuation there.
Yeah, it’s just really, how do they come, the question I always have in my head is how do they come to the value of that valuation of the company? Because if it was one of the CFA’s, Chartered Financial Analysts, that we work with. Uh, they would just analyze a company’s free cash flow and base it based on that.
So I wonder how they’re basing it, and I wonder why in a lot of these shows they don’t ask that question. What’s the valuation based on? But, let’s see. Neo Walk. Now when disability came knocking on my door, I was around your age, Sarah. And I was only 43 when I lost my leg because See, it’s a good pitch because it’s um, He addresses somebody’s age and then looks at them and Talks about the emotion right away.
And when I looked around, I saw a grey, ugly, dull world of walking sticks. And after many, many botched attempts at home, I finally made my first acrylic walking stick. And it was gorgeous, and I felt confident, and now NeoWalk has over 200 different combinations of styles. And patterns and our Neo walk family is hugely diverse from teenagers to veterans.
So this is really, I think it’s really good. The only thing is that I was going to criticize something, but they fixed it because at first she was talking about herself and her problems, which is good. Uh, but then she also talks about her quote unquote clients or her customers problems because if she’s showing that she understands her customers problems and that’s super important because if you don’t understand your customers problems, you might as well, uh, shut everything down.
And even some celebrities. Now, I’ve made you all your own walking stick. Have a go, and I’ll introduce you to Jez and Katie, and if you’d like to ask any questions, I’m really happy to answer them. She should have talked about, like, her profit margins, that’s the only thing, but I love the way that she talks about her target market, and it’s not just an emotional story that doesn’t connect to the target market, but if she just had a bit more about the profit margin, then she could prevent the objections that the investors are going to give.
are the offering from Lindsay Watterson. How do you find them? I find them really, really comfortable to walk around in. She’s seeking 80, 000 in exchange for a 15 percent share of her bespoke mobility aids business. Stephen, yours lights up. Oh, hello. Lindsay may have already illuminated the den. But will her products earn a glowing review from the dragons?
Sarah Davies is first to try and get a handle on the business and she’s clearly been gripped by this entrepreneur’s story Like if it’s on a level, it’s actually such a basic product in a way It’s really just a shiny like in a way, this is a shiny cane basically But I think if the point is if people are buying it resonates with a target market, I can’t imagine Me at my age now, having all of a sudden be thrown into something where you’ve got that debilitating feeling and, and then to top all of that off, you have to get up and Use a plain wooden walking stick.
Yeah, it’s a challenge and it’s a big hurdle on that journey of disability. Actually using mobility aids. We aim to destigmatize and normalize them. So how long since the first one came off the production line? I started the business in 2013. Really just as a, a small business because I was acting and I was a circus performer as well.
You’re a circus performer. What did you do? Well, after I lost my leg, I was approached to be a performer in the opening and closing ceremonies for 2012. And, at one point, there’s a motorbike flies over the stadium with a blonde underneath. A one legged blonde. And that’s you? Um, yeah. That is an amazing thing to do.
Well done. Wow. It was incredible. Excellent. Can you just talk me through the numbers? 2013 and Talk me through the numbers. I wish they spoke through the numbers earlier. All the way through, generally, because it was just a hobby business, was around about 10, 000 a year. But 20 10, 000 a year. The 9th Yeah, that’s really, like In 2020, we turned over 13, 000 and then last year we turned over 70, 000 and this year we are on target to turn over 200, 000.
So that’s not, that’s not that bad. So 200, 000 is not that bad. Like it sounds like it’s a small business, you know, she probably is looking for help to grow it. So like, there’s nothing wrong in that, right? So, how can you take that business to the next level? The question is the profit margin and, yeah, the growth plan.
Um, I don’t know whether any of you have encountered an MRI scan. Because it’s a magnetic machine, you’re not allowed to take anything metal into the room. And I’ve been manhandled over to the, the scanner bed. And it’s really quite undignified. These walking sticks that we make are all acrylic. So we aim to access the NHS to be able to supply, uh, scanner friendly walking sticks.
Hmm, that’s a really good idea. But then the question, one thing is that, is the thing of this pitch in general, and a lot of these pitches, but this one specifically, is that it’s over emotional in my opinion. It’s over emotional. Like, there has to be more of like a cold lo Like, there has to be like a side for the emotion, and there has to be like another side for the cold, brutal logic.
So I think they need to add a bit more in that, like, okay, I have five partners. They said this, here’s what they said. And here’s how a partner with them, there’s a 20 percent chance that one of them would say yes. And then after that, it will get access to this many customers, which will have, you know, so something like that.
But her style seems to be working for her so far, right? The mobility aid entrepreneur floats a tantalizing prospect. Doing business with hospitals across the country.
Like it’s cool at a high level and you have the narrator, but if she has those, if this is actually serious and she has those business to business deals that go through, it could produce a lot of cash because one problem with the, the business to consumer businesses is that you have to partner with an influencer or run ads.
Uh, or, you know, to get many sales. But if you just partner with one of these hubs, instead of the spokes, then you can have one partnership that gets your product out like crazy. So it’s like hundreds of thousands or millions of dollars if she signs a deal with the right people. But, again, like I wish she had a specific plan or a specific roadmap of how many people she spoke to, just in a sentence or two, like, and what was the feedback.
How likely are interested are they in proceeding or going with her, right? Has already resonated with Debra Meaden. I recognize the problem because my sister’s in a wheelchair and she hates being manhandled. You know, of course you want to make your own way. So how much do they sell for? They average 75.
That’s at retail? Yes. And so what’s your most expensive one? A light up, starry sky, which will retail at 119. Okay, and the one you plan talking to the NHS about would be around 40. Okay, and how much they cost you to make at the moment? 16. Can I stop you there for a second? That’s interesting. Have you ever copped Sounds like a good profit margin, I wonder what else she’s paying for.
I’ll see what I can do. Well, I buy the rods from China for around about 12. That’s expensive. I’m only saying that because if you go to the NHS, NHS say, well, we’re not going to pay you a premium. No. We haven’t got the budget. No. You could probably make that for three or four dollars. Five dollars maximum.
You need to go back to China. And say to China, look, I’m going to be pitching this to some big players. My target price is 5. That’s awesome, and that’s why I like the show, because um, if they do bigger deals, they have more volume, they can probably get a bigger volume discount, and I have no idea how they negotiate with these factories.
You’d be surprised.
A spot of outsourcing sorcery, courtesy of manufacturing maestro Tuka Suleiman. But will the Dragons be willing to provide the mobility aid entrepreneur with the support her business craves?
Lindsay, well, congratulations. Well done. I mean, you’ve come through. has come into the deck. They pitch it, that they attract a dragon. Now, if you’d come here and said, Guys, sometimes when Entrepreneurs come into the den, they pitch it, and they attract the dragon. Now, if you’d come in and said, Guys, I need some help in my sourcing, and I need 30, 000.
That’s a punt. But unfortunately, you haven’t pitched a business to me that 000. And for that reason, I’m out. See, that’s kind of partly what I was saying. Is that the story is good. But the, like, the cold, logical, calculated part of the business where it’s just about numbers and survival. That part’s not really there because this looks more kind of like, um, If it was, if it was serious, it would be more like, Okay, yeah, we’ve talked to this many hospitals and we had this much.
Uh, this many things going, you know, but it’s more just kind of like a, um, like the 80, 000 per year is good or the 70, 000 per year revenue is okay, it’s okay, or the 200, 000. But I think it’s just because of that logical part, that’s why he left. You are a great entrepreneur, and you’ve also created a really great product.
But, um, as an investor And this guy is, this guy is actually pretty, uh, solid. I think that Before the age of 30, I think he already, he had an IPO in the UK. So this guy is probably one of the best people to speak on anything in this whole video. I look at this in terms of, if I deploy my capital, when will it come home?
I forgot his name, but he wrote the book called, um, Happy Sexy Millionaire. Back to daddy and I don’t actually think I’ll be able to get my capital back within the next five years at least So for that reason, so do you see how he’s scientific and he’s like calculated. He’s like in five years I don’t think I’ll get my money So no So do you see how you should just have that part?
Solid before you talk about the emotion because if you have like something where there are wheelchairs or suicides and all these problems It’s true and it’s good and it’s whatever but and if the money isn’t there then it’s really just talk, you know He said, I applaud you, but I’m out. Like you can’t pay rent with an applies, right?
There’s a saying in the investment community, and that is that debt is cheaper than equity. You’ve got a great case that you could go to the banks and say, I need a little bit of capital and you could use that to organically grow the business in a way that would allow you to maintain. She looks so disappointed in control of the business.
So my advice to you would definitely be, if you feel you need capital to grow the business, explore the debt route for the equity route. So for that reason, I’m going to wish you all the best, but it’s not an investment for me today. But you know what? Like I didn’t really see why she wanted the capital. I didn’t really see what she’s the use of the funds and use of the capital.
Out. Four dragons are now out. Only Deborah Meaden remains. She’s already lent this entrepreneur’s plans a sympathetic ear. But does she also have her eye on a deal? So, Lindsay, it’s a really, really nice product. And it would really take the stigma of a walking stick away. I almost certainly will buy one for my sister, possibly two.
But at the moment, in your format, you’re not the solution for the NHS. Because I promise you, they will find another solution that costs less than 40. And therefore, I don’t want to invest because all I’ll do is take a bit of your business and I’m gonna sit here feeling like I’ve already made a difference.
So I won’t be investing. I’m out. Okay, so she, her, she was taking the same angle as the first guy with somebody who copy you. Not somebody who copy you, somebody, they’ll do the same thing that you’re doing. Hmm, interesting. I didn’t, I’m not aware how undefensible this type of business model is. Thank you! I think bottom line, if she had more sales, then it would have been way better.
But anyway, no, that was, that was an interesting video and it’s just something different. So, so if you want to learn about, you know, capital raising for, you know, assets, real assets that can actually like really get done and deals that can actually get done, just head to raises. com. But if you want, if you’re not ready for that, you want to get in a giveaway, make sure you subscribe, click that notification bell so you can learn more and we’ll see you in the next video.
BANKER REACTS – Dragon’s Den Pitch – BBC NeoWalk – Capital Raises – Raising Capital
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