New research by business data website Company Check suggests food businesses are the most successful on Dragons’ Den and that two person partnerships achieve success more often than individuals.
The analysis, which took into account all 187 businesses that received investment over 13 series, shows the typical anatomy of a successful pitch, based on the most common traits of companies that were offered investment.
The infographic below shows the most common traits of successful Den businesses (note: these are businesses which were offered investment, even if that investment fell through after the show):
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The data shows that food businesses are the most likely to receive investment, with 36 offered cash over the 13 series – more than 17% of all investments made. 32 of those businesses are still active today, though only 10 still have Dragon investment.
Clothing, technology and businesses relating to products for services for children were also amongst the most popular in terms of attracting investment.
The data also shows that pitches which involved two entrepreneurs were successful more often than those from solo entrepreneurs or teams of three. Asking for £50,000 for 40% equity share is the most popular combination, with Peter Jones and Deborah Meaden the most likely to invest (and also two of the longest standing Dragons).
Chika Russell appeared in the Den in series 13. She accepted an offer from the Dragons for her food business but later turned it down. Speaking of her experience, she said:
“Food and drink businesses work on Dragons’ Den for a few reasons: first, there are major changes in consumer eating patterns and the large players are just not set up to innovate to meet the demand for new, contemporary food products. Second, the Dragons are inevitably all consumers of food and drink and can immediately have their own view as to whether it can be successful in the market place.
“It was a great experience going on Dragons’ Den to have our business model challenged in that environment and be vindicated with five offers. Although I accepted Peter Jones’ offer initially, during the whole process I gained the confidence to realise that while it might be easier to get outside help from a Dragon I could go it alone. And, ultimately, knowing how hard it is to build this business I didn’t want to share it with anyone who wasn’t going to sweat it in the same way as I was.”
Alastair Campbell, founder of Company Check and recent recipient of a $1,000,000 investment in his new venture Carsnip, said:
“It’s interesting to see the trends that are emerging in the way the Dragons invest over the years. Despite changes in the show’s lineup, there are clearly certain types of business that are more likely to receive investment than others.
“Of course, the Dragons’ backgrounds play a big part in this, as there will be types of companies and industries in which they have more experience and therefore a greater interest. The data shows that technology business investments have not grown over the years, despite the boom in this area elsewhere, which is interesting but also a bit of a chicken and egg situation – if the businesses aren’t pitching, they can’t invest!
“I’ll be following the new series with interest to see if the investment choices differ this time around.”
The data, which was analysed by Company Check in July 2016, showed that the most successful business in terms of net worth is Hungry House, which received £100,000 investment offer from James Caan and Duncan Bannatyne in a deal which collapsed soon after. Today, Hungry House has a net worth of £1,800,000.
Opus, a trailer tents company, is part of Purple Line Limited – a group which collectively has a net worth of £2,108,345. Deborah Meaden’s deal with Opus also collapsed after the Den.
The most successful business to still have Dragon involvement is Mainstage Travel, a package holiday operator with a net worth of £656,200.
