Dragons' Den: Investors shocked by entrepreneurs' valuation
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The co-founders, Will Hodson and Henry De Zoete, entered the Den in 2018 seeking £90,000 in return for one percent of their business ‘Look After My Bills’. Look After My Bills, which offers an automatic ongoing switching service for gas and electricity, secured a £120,000 investment for three percent of the business.
Look After My Bills minimises the price people pay for gas and electricity as they knew “people get ripped off”.
They said the service helps people switch providers and save money. Once signed up, customers would be switched to the best deal automatically each year.
All five Dragons wanted to invest in their service and it quickly became very competitive.
Deborah Meaden said: “Anything that disrupts the blinking energy industry has got to be a good thing!”
Henry and Will walked away with the backing of two Dragons, Tej Lalvani and Jenny Campbell.
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.
They told minutehack.com: “For us, it’s been an incredible ride as we’ve built a fantastic team of energy experts and a culture that will not accept any one of our users being overcharged.
“Joining forces with GoCo Group will help us bring Look After My Bills even more into the mainstream.”
Investor Jenny Campbell reflected on negotiating one of the “best deals” in the show’s history.
She told the Look After My Bills blog: “It was one ofthe longest negotiations in the whole series with Look After My Bills, lasting nearly three hours.
“I don’t think anyone else went to the wall three times.
“It can be a good thing if the entrepreneurs in front of you can’t agree to your offer but they have shown they’re prepared to negotiate and negotiate hard.
“I like the hard negotiations because it shows the entrepreneurs’ skills. I was okay with where I landed with Look After My Bills.
“Of course I would have wanted 10 percent of business, of course! All this means is that we’ll have to make it even more valuable to make the investment worth it!”
When the duo entered the Den, they already had about 15,000 users at that point so it showed there was a need for the business.
Tej and Jenny visited the Look After My Bills team in their Vauxhall offices in early December 2018, when they had reached 80,000 users and the team had doubled.
They had 100,000 users in 2019, showing how far they had come in such a short space of time.
It’s been branded the “best deal in the show’s history” with the duo only having to give up three percent of their business for a cash injection, The Sun reported.
Dragons Den is available on BBC iPlayer.
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