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Dragons’ Den stars have offered the biggest deal in the show’s 20 year history with an eye-watering amount for just 1 percent of a company.
On Thursday night’s episode of the BBC hit show, Francisco Gimenez stepped into the Den with an ambitious plan to revolutionise the hairdressing industry.
His company, Yuv, launched in 2023, has developed a smart hair colour dispensing system that automatically mixes the perfect shade for every client.
This not only cuts down on waste and saves valuable time but also tracks colour usage through an app – similar to a printer’s ink subscription service.
Explaining how the business model works, Francisco told the Dragons: ‘You as a saloon will pay £49 a month to lease all of the equipment.
‘On top of that you pay for the hair colour that you actually use, as you use it.
‘To put it in perspective, a salon of four to five hairdressers, can use between £800 to £1,000 in colour per month.
‘We have an operating margin of 55%. So a salon that uses Yuv should contribute £500 in profit per month.
‘We have a couple of patents, we have been working on this for three years. We just launched, literally just launched.
‘We already have a waiting list of about 500 salons. So I am here requesting an investment of £250k for 1 percent of the company.’
The Dragons erupted into laughter as they tried to process the bold valuation.
It was then time for the Dragons to share their thoughts on Francisco’s product and decide whether they wanted to invest.
Touker Suleyman said: ‘Look, I think you’re great. However, if I have to stick to my true rules, I don’t get out of bed for 1%.
So, for that reason, I’m out.’
Next, Sara Davies said: ‘Francisco, you’re very, very good. But you don’t need any of us to tell you that.
You know that – you’ve got a proven track record, you’ve put your own money in, and you’ve just got everything going for you.
‘And I’m guessing the offer that’s on the table is like, ‘This is what I’m offering you – are you in or out?”
Sharing her decision, she continued: ‘I’m in. I’d be in on this. And I understand it’s a small little seat on a big bus. But I tell you what – it’s a good bus to be on, isn’t it?
‘So yeah, I would give you all that money – the quarter of a million – for 1%.’
Next up was Emma Grede, who said: ‘Francisco, I just don’t think I can do a better deal for you than Sara’s done here.
‘I would happily give you the £250,000, but I wouldn’t do it for 1%.
‘I would need 3% of the business. So, I’m just going to be really honest with you because I think what you’re doing is great. That’s an offer – that’s a straight offer.
‘I’d do £250k for 3%. Having said that, my experience – and I’ve raised a lot of money, hundreds and hundreds of millions of dollars – is that not all investors are created equal.
‘Some are more useful depending on the stage that you’re at. And that’s not being disrespectful to anyone on your cap table – it’s just that different people are good at different times. So, I’d give you that offer.’
Peter Jones said: ‘Francisco, you know what – I could not have described that better than Emma.
‘Because I made you an offer before I even knew how much you wanted or what equity you were asking for, right?
‘So I’m going to keep my word and stick to that offer. My offer still stands, but with a slight tweak.
‘My tweak comes in the form of advisory shares, to Emma’s point – because that is so true.
‘Not everybody is equal on the cap table when you look through it. You often get ‘Avengers’ in investors, and I feel like I’m one of those.
‘So I want 3% advisory shares. The benefit of that is you can keep your cap table clean without offending anybody at that 1%, and nobody gets diluted.
‘The only person who does is you – because you believe in the value of having me. So that’s my offer.’
Sara questioned: ‘1% plus 3% advisory. So you’re at 4%?’
Peter replied: ‘Yes.’
Next up, Deborah Meaden said: ‘Francisco, I think you’re great and I love the vision. It doesn’t bother me if it’s a smaller percentage, because if you’ve got a business that you expect is going to really, really gun it, then, you know, that’s a great thing to be part of.
‘So I’m going to make you an offer. I’m going to offer you all of the money, I want 2% of the business.’
Finally, Steven Bartlett was next up. He said: ‘I’m going to do something I don’t typically do. I’d like to park myself above the other Dragons when I make an offer, typically, but I actually believe if you took an offer today that was outside of this ask, it probably wouldn’t happen.
‘It would annoy too many of the people that have supported you on the journey you’ve been on.
‘So, I’ve sat here, the reason I’ve paused is because I’ve come to a point that the offer is the offer.
‘You are so fantastic that I’m going to give you that. I’m going to give you the £250k for 1% of your business.’
After evaluating what the Dragons had offered, Francisco decided to accept both Sara and Steven’s deals.
