Dragons tackle a staggering valuation - Dragons' Den - YouTube

my name is Henry and I'm will we're cofounders of look after my bills our

service minimizes the price you pay for gas and electricity because right now

people get ripped off we all know that we should switch but we don't so look

after my bills does the switching for you you sign up on our website in just a

couple of minutes our algorithms get to work and then we move you to the best

deal every year automatically you don't have to lift a finger

that's the key difference between us and comparison sites with energy alone we're

taking on and disrupting a market worth billions and we're offering 1% of our

business for 90,000 pounds thanks for listening we'd love to take any

questions a confident pitch from will Hudson and Henry to zut asking for

90,000 pounds for a tiny 1% of a website that automatically finds the best deal

for your gas and electricity but the multi-million pound price tag

appears to her ruffled tej Lala nice feathers

hi guys will Henry hi wondering where to start well they should start with the

evaluation how do you get to that figure and why do you think your businesses is

worth nine million pounds it's a combination of our track record

experience in this space but also the size of the market in front to us so

right now people spend twenty nine billion pounds on energy in Britain

alone they're 20 that doesn't excite me too much a lot of the time people come

into the gym they're quote market sizes and say well because of that but let's

start with more basics how many customers do you have because a

valuation like that I presume you'd have a lot of customers on board be around 60

to 70 thousand who've done this which people have signed up for the

opportunity to take our deals it's a larger number around 250 300,000 in

terms of it before you set up the business four years ago what did you

both do I've got a political background actually so I started off doing policy

and think tanks I then was a special advisor in government so different

approach to to Henry I actually did some work for the Green Party and I decided

that I wanted to do what I could about big business not giving the best

treatment it could to normal people and consumers will and I have been all for

instance University I left government in 2014 we'd been talking you know as best

mates for years about doing something together so we started the big deal what

the business did to start off was one-off switches so we say people huge

money with great deals but then the deals expired and they got to a higher

price now customers asked us to start switching for them and that's where look

at my bills comes in

the entrepreneurs put up a robust defense of their valuation citing a

growing business born out of consumer demand but Deborah maidens worried the

new laws protecting personal data could short-circuit their chances of success

well Henry do you see any changes in the legislation that's gonna stop you from

simply being able to take decisions on your consumers behalf know the direction

of travel in this space is all towards a service like look after my bills I'm

sure you will realize that the energy market just doesn't work for customers

because they don't keep engaging with the market and people of course don't

switch because it's a complete pain in the neck and if you do it once you're

certainly not going to get around to doing it every year thank you how many

competitors have you got in this field the big players would be the large

comparison websites they do normal switching manual switching in terms of

automatic switching this really is an early green industry

no one has established themselves a central player which is our aim there's

been zero innovation in this market for twenty years

price comparison websites look like they did 20 years ago big list that's it and

still 60 70 percent of people do not switch there has to be some new

innovation to change this and we think we're the ones that can do that a

groundbreaking website that's also first to market it looks like the

entrepreneurs have all the elements for success but Jenny Campbell wonders if

they're at the mercy of the big players not joining their utility revolution

energy companies whatever big one is choosing not to be on your platform

because frankly it costs them money too I would call it slick their own throats

yeah there's a race to the bottom we try to get people with the best price we can

find and supply as they can trust now if a supplier doesn't want to engage with

the service that gets customers a great deal year-on-year

I'm not sure that's the kind of company that we want to be moving people to

are you not compromised on independence because surely whoever pays you the most

you know deal done isn't it I think ultimately all we can do is be totally

transparent and honest with our users they know there might be cheaper dealers

out there about some companies that we wouldn't necessarily recommend

a rare occurrence in the den as the entrepreneurs reveal cash won't always

be king on they're switching site Tesla Varney has quietly taken a reading of

the numbers and is ready to supply his verdict on the proposition you guys want

smart money right and there's a cost to having the value in the den what we're

gonna prove I think what you need to do is to grow your brand and to build it

create the awareness and that's what I can do and at the same time you'll need

to raise money future and I can help with that too

right I'm not gonna waste any time I'm gonna give you an offer the offer is all

of the money but at 7% thank you thank you

tage Levani provides an early boost for the entrepreneurs but the deal he wants

is 6% more than the 1% on offer does Peter Jones feel the entrepreneurs

have what it takes to look after an investment I think you've done

incredibly well I really like the idea I think got a real chance of making this a

success so I'm gonna make you an offer and I'm making this offer because I

bring so much more value than - I don't have you so I don't need to compete with

that I'm gonna offer you all of the money but in return I'd like 10% of the

business

technology guru Peter Jones electrifies the den using his track record to go in

higher than his fellow dragon demanding a whopping ten percent of the company

but does touka Sulaiman feel he can come up with a better deal impressive your

impressive

and I believe my offer can add great value to you so I will give you all of

the money per eight percent I love this business for many reasons I think

anything that disrupts the blinkin energy industry has got to be good news

and I'd really love to be involved and what I really want to be involved in

something I get quite competitive so I am gonna make you an offer and good off

you all of the money

but they want 3% of the business

Debra Medan dramatically undercuts her rivals encouraging the entrepreneurs to

switch to her deal of 90,000 pounds for just 3% Jenny Campbell can also be quite

competitive is she about to turn up the heat in the dead the thing that I really

really like is the ethical peace that comes through this you're launching

today is about making energy companies honest at the end of the day and it's

it's longer would you so what is there not to like I'm gonna throw a little bit

of a curveball in and say that I would offer you 1/5 of the money for 1% which

means you need to get the rest of us to agree mm-hmm do want to go and talk at

the back guys yeah

a full house Peter Jones offers all the money for a hefty 10% to KO Suleiman

wants 8% taze LaVon ease after 7 Jenny Campbell wants 5% shared equally but

Deborah Medan has been the most competitive asking for just three

percent of the company

having discussed it any now incredibly flat flattered we're willing to double

the amount of equity we're giving away in our business from 1% to 2% but we

need slightly more money we need to ask for 150 K for that 2% look guys I think

you have to understand the real value here at 2% even a struggle you need to

be a bit more realistic guys can I just say that I do understand the predicament

I like it even more so just on that or half my offer so I will offer you all of

the money ninety thousand for five percent not 10%

this I'm afraid has to be our our final offer and we're really really keen to

make it work

120,000 pounds for 2% of the business I

didn't get out of bed for 2% that's for sure understand

so on that basis I'm out

touka Suleyman stays in bed refusing to give in to the

entrepreneurs equity demands but is 2% enough to tempt the other dragons from

under the covers I actually think it's a great shame because this could make a

lot of difference to you we don't want to give up on you

please please believe that this is as far as we can go

I'm sorry guys

No

I'm out guys feel that you've taken the negotiation way too far and that shows

to me there's a naivety in business that really concerns me and I think you will

walk away from here now having completely missed a massive

opportunity you're about to make one of the biggest mistakes of your life is

that your final offer 2% so final offer

on the basis of that's your final offer I'm out

they've had five offers but now just two dragons remain our Jenny Campbell and

Tesla Vani willing to negotiate okay guys here's where I'm at

you asked for hundred and twenty thousand for two percent but I urge you

to reconsider and see the value that the Dragons are going to bring we do I'll do

one hundred twenty thousand but for three percent and that's my final offer

it was very happy to bring Jenny with us both

okay both is what we would like I would share with TAFE

that's three percent so we're part by one percent you could walk away on the

basis of one percent

it's half a percent each there is no way that you two would do

what 124 two percent as we as we describes well we gave you our final

offer

Jenny and finish we have a deal right

ago she ations well done they almost lost it but having given away just 3% of

the company will and Henri leave with a hundred and twenty thousand pounds and

two switched-on dragons