Dragons' Den (2024)

The 10x Rule

Dragons' Den (1)
Want more business tips? Check out the book Wise Words by Sean Wise, the official blogger of Dragons' Den
This week we heard the usual assortment of reasons for not investing.
  • not enough profit
  • not enough revenue
  • not enough sales

In previous posts, I've spent time discussing why sales are so important as proof of concept. I've also discussed what it takes to get a deal. Today, I'd like to chat about the 10 x Rule of investing.

While it is true that angel investors (like our dragons) typically seek 10 times their money back over 3-5 years that isn't the source of the "10x rule". The 10x rule means that in order to gain market traction a product must be exponentially better. ie 10 x faster, 10x smaller, 10x cheaper, 10x more profitable.

The reason for this? --Market adoption. Historically, being a little better isn't enough to gain huge market share fast:

  • Beta is a little better than vhs
  • Blu ray a litter better than hd dvd
  • Plasma a little better than lcd screens

Now compare that to:

  • email is WAY faster than snail mail
  • airline travel WAY faster than train
  • mp3 players can hold way more than cd players

It doesn't take an MBA to see which of the above gained significant market traction and which still struggle for mass adoption.

That....is the 10x rule and if you are going to be seeking high returns on investment you only want to back high risk, high growth companies that meet and beat the 10x rule.

Posted By: on Nov 28, 2007 at 10:00

Dragons' Den (2024)

FAQs

What is the most successful product from Dragons Den? ›

Magic Whiteboard

With an original investment of £100,000 from Deborah Meaden and Theo Paphitis, this portable whiteboard roll became a smash hit. The Magic Whiteboard was created by husband and wife Neil and Laura Westwood and has since become the two Dragons' most successful investment.

Who is the most successful rejected Dragons Den? ›

Tangle tee*zer

Well, let's say the pitch didn't go very well, and Pulfrey heard the sentence "I'm out" repeated 5 times to him. In the ten months following the rejection, the Tangle tee*zer turned over £800,000, and a profit of £200,000.

Do Dragons Den cast get paid? ›

Here was me thinking they'd spend all day listening to pitches from entrepreneurs all for their own image and the chance at making money from the companies afterwards. But no, that's definitely not the case! The Dragons are actually paid a fair whack for their time in the Den, to add to their already huge net worths.

What questions do the dragons ask in dragons den? ›

The Dragons' Questions. So what type of questions do these people ask of the entrepreneurs? They almost always focus on questions like, "Do people want what your offering?" or "Do you know who your customers are?" Many of the entrepreneurs react badly to this.

What was the biggest deal in Dragons Den history? ›

After appearing on the show, the group behind GoCompare.com bought the energy switching site. Mr Hodson and Mr De Zoete said the £8.5million sale meant the Dragons had more than doubled their money in less than 12 months and could triple their money.

Who is the richest person on Dragons Den? ›

Peter Jones stands out among the rest of the Dragons, both literally and metaphorically. He's the only Dragon still standing from the very first series 19 years ago, and he's also the richest. According to the Sunday Times Rich List in 2023, he reportedly has a net worth of £1.2billion.

Do the dragons actually invest? ›

Each Dragon is working as an individual investor. The Dragons can invest as little or as much of their own money as they want. It is up to the entrepreneur to persuade them to match the required investment or pledge to invest a portion thereof.

What is the most successful product on Shark Tank that was turned down? ›

One of the most notorious (and successful) Shark Tank rejects started as a video doorbell name Doorbot. After a famously tepid reaction from the sharks, Amazon later bought the company for a deal worth nearly $1 billion.

Has anyone on dragons Den made money? ›

A plastic case that allows electrical wires to be stored safely and securely, after granting the two Dragons' a 36% stake between them, ChocBox then scored a sales deal worth £25million. Just three months after he set foot in the Den, the partnership had made Peter a millionaire.

Why did Kelly Hoppen leave dragons' Den? ›

Kelly Hoppen, aka the 'Queen of Taupe', announced in 2015 that she was leaving after two seasons because she was too busy to commit to the filming schedule. "It has been a privilege to be part of a programme which champions entrepreneurs," she said.

Is the money on the table in dragons den real? ›

Amusingly, the dragons sit with large stacks of cash on the tables between them as the pitches are being made - although it's strictly a prop, and no cash is seen to be handed over (after all, the dragons don't have the luxury of commercial breaks in which to count out the cash).

Are the dragons Den friends? ›

What's clear is that none of the dragons take the showdowns in the den to heart. During his appearance on This Morning to discuss the latest series, Suleyman revealed that off screen the dragons are all friends and love to hang out together all the time while filming the unscripted series.

Why can't she control the dragons? ›

Jorah reminds Daenerys that dragons can never be tamed, not even by their own mother. After Daenerys claims Meereen as its queen, Drogon continues to hunt for food independently, burning and killing livestock of farmers that live around the Meereenese region.

Which dragon has been on Dragons Den the longest? ›

Key Dragons' Den stats and facts

Peter Jones is the longest serving Dragon in the world, having been on the show since the first series and taking part in all 21 series. He has also appeared as a guest on Shark Tank, the US version. Over £32 million has been invested in businesses since the series began.

What is the secret in House of dragons? ›

The good King Viserys (Paddy Considine) is burdened by the weight of the crown, but he is also troubled by an old family secret. His legendary ancestor, King Aegon the Conqueror, had a vision that the world of men would fall, and understood that only his family of Aryan inbreds could save it.

What is most successful product sold from Shark Tank? ›

What are the most successful 'Shark Tank' products?
  1. Bombas. Bombas, a sock company that now also makes bras and t-shirts, came to the minds of co-founders David Heath and Randy Goldberg when they learned that the number-one most-requested clothing item in homeless shelters was socks. ...
  2. Scrub Daddy. ...
  3. Squatty Potty.
Jan 16, 2024

Which dragon has made the most money from investments? ›

Taking first place with an overwhelming portfolio of 41 investments, Peter Jones has invested £2,080,666.67 over the course of 18 seasons, averaging just over £115,500 per deal. The Dragon that has invested the second-highest amount of money is Deborah Meaden, who has invested a total of £1,799,000.00.

Which dragon is worth the most? ›

Peter Jones is the richest and longest-serving Dragon, having joined the show on its very first season.

What was the failed business from dragons den? ›

Grillstream on Dragons' Den: Here is the Grillstream pitch from 2009. Ask: £120,000 in exchange for 15% equity. The Dragon's Liked the product idea, but they weren't convinced of its ability to make money as a standalone product and ultimately passed on investing.

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