"You Have A Valuation Of £5M" | Dragons' Den

Craig Smith's financial tech business is what's next on offer in The Den. He's seeking a £100,000 investment for a 2% share of Just Lend.
Season 20, Episode 2.
An international sensation, Dragon's Den features entrepreneurs pitching for investment in the Den from our Dragons, five venture capitalists willing to invest their own money in exchange for equity.
#DragonsDen #BusinessPitch #Finance

[@demonmech]

Good lord this was a tough one to watch. I’m shocked he got an offer

[@bluceree7312]

And it had to be Stephen, of course.

[@colmwhateveryoulike3240]

​@@bluceree7312And Deborah.

[@alexmason2641]

@@bluceree7312 any idea how stephen is doing with his investments? seems like most of his decisions are based on what his heart thinks

[@BDogs10]

how on earth did he get an offer?? & besides I think the offer was very generous = what for?

[@user-bg3wt9fg7y]

Yeah I didn’t enjoy this one! He made me feel uncomfortable 👀😂 feel bad saying that but it’s true.

[@Lunchladydoyle]

Holy crap. His tech guy was too scared to come and this guy was too dimwitted to at least learn the basics of how their technology works. What a mess !!

[@fanficrocks]

I wouldn't be so harsh, there are people out there that have a phobia of speaking in public / on national television or in front of a high pressure situation.

[@KINGKING10109]

You can tell this guy comes from Money. He had a great idea & invested Family money into it, But he’s never had to walk the hardships of life to earn that money so he lacks a lot of character traits.

[@milamarshall7842]

5.1% fee to simply middle man a loan is actual insanity. You can get a bank loan where it’s the banks capital for a little more than that and he wants that to do literally nothing but provide a loan agreement that’s free on google. Actual insanity.

[@rleriche5044]

Exactly. First thing I thought.

[@athertonken]

Was surprised some of the Dragons thought it was a good idea, gone down a notch in my estimation.

[@Liberty_Freedom_Brotherhood]

Funding circle charge a 6.9% arrangement fee plus interest of over 13% per year

[@BDogs10]

@@athertonken you’re right 🤦‍♂️. Recent years the bank of Mum & Dad has become more of a thing. I’m thinking who is going to want to pay extra for this simple lend? Sure, it’s there to be a safeguard but I can’t see a mass appeal for this Service. & Of course any of the Dragons could do this themselves. & to cut in at such a low %? don’t get it🤦‍♂️

[@TheAazah]

This can pray on the vulnerable

[@rileywebster5632]

At first I was thinking “this is one of the worst pitches ever”. Then I thought “this is the worst pitch to ever get an offer”. Then I thought “this is the worst pitch to ever get two offers”. Then I thought “this is the worst pitch to ever seal a deal”. Unfuckingbelievable.

[@BDogs10]

Bro😂, spot on. Let’s all go on there & pitch some rubbish. *almost guaranteed to bag a Dragon

[@MyFoodeater]

This is bad but… le beanock is the worst product that ever got investment

[@JoaquimSerafim]

u got it the worst BS ever

[@peterreber7671]

"Borrow with pride from family and friends". That just doesn't exists. Without embarrassment maybe, but not with pride.

[@Theresa-lt3ki]

Well said

[@2High2bebad]

its called rhetoric

[@chcarroll5164]

@@2High2bebad there's a word for loans made to family and friends: "gift"

[@WeeMan283]

The reason we borrow from family is to not pay you fees so... im out

[@TheManInBlueFlames]

How?

[@WeeMan283]

How what

[@michaelcross9722]

Even though Craig didn't explicitly say it, this whole pitch felt like a "Trust me bro" moment, especially near the end when he convinced Steven to stay in.

[@anaguerrerosholisticwellbe2788]

This is for real 😂

[@watson2288]

“Ever so sorry your family member has missed a payment, shall we send the bailiffs around for you?”

[@karjuntsang6365]

People need to understand that you need to know every single detail of your business before pitching to money lenders and need to know how to pitch confidently

[@fanficrocks]

While it is true that you need to know your business inside and out 101 ways from Sunday. What you might be unintended is the overlooking of the human factor in the pitch.

[@Veeooom]

You say that like he just didn't walk away with a deal 😂

[@earlofcumbrae-Ground_Zero]

I can't believe he got offers !! Crazy valuation & he seems clueless

[@paulct91]

Very sad, explains why tech bro, was rushing to his defense!

[@declantill8864]

I'm sick of SB, drips with insincerity

[@colmwhateveryoulike3240]

​@@paulct91Deborah was first.

[@roryfitzpatrick3571]

This is what they do with a lot of ideas that they see potential in. They tear apart the CEO, pick holes in it non-stop and then lowball with an offer.

[@penguthepenguinj]

Typical ceo he doesn't know anything about even his code and why it's built well

[@Ziggykitty666]

Sounds like Elon musk

[@hennersss]

​@@Ziggykitty666Elon has incredible knowledge about his companies, what a strange comment.

[@Ziggykitty666]

@@hennersss nah, he just used daddy’s money to buy successful companies with people who know the business or has always hired people to do those things for him. Every time he speaks about coding, he sounds ridiculous.

[@arronchiplin1446]

​@@Ziggykitty666bitter

[@sigma_z]

No, that's not a typical CEO at all. This was NOT in any way or form any characteristics of any successful CEO I know.

[@dimitar4y]

"I put a lot of time in it :D" 5 years = 5 million? I love this show. Clown central.

[@webrevolution.]

He said it was 4 years, not 5.

[@dimitar4y]

@@webrevolution. oh, yes, 1 year big difference, easily makes the 5 million.

[@FLower13582]

I understand where you're coming from. However, time can be subjective. We don't know the amount of hours and effort that went into it. And even then, time itself is subjective. Because 5 years may not seem like a lot to one person but it is to another.

[@dimitar4y]

@@FLower13582 dude you even real? He doesn't know a thing about his business. He looks like a thief that somehow stole it and wants to fence it.

[@top.secret000]

You don’t value a business based on how much time was spent founding it. By that logic, if I spent 100 years founding a company then it should be valued in the billions right? Obviously not. Businesses are valued based on their profitability potential.

[@rachmadsuhartono]

An entitled spoiled private school CEO that made existing problems worse. My favourite kind of pitch

[@jcasstudio]

do you know him? do you know what he has gone through?

[@NunezNunezNunezNunezNuneNunez]

@@jcasstudiohis pitch was beyond trash

[@KnightsofComputation]

Can't beat a private school CEO of a one man company!

[@CMW__]

Entitled? Jealousy much

[@Marais-cu3vo]

Better than Indonesia.

[@Fillmuty]

The "thank you but no thank you" part in the end just goes to show he really has no clue on how lucky he was by getting 2 offers. He was completely destroyed through the who pitch and yet threw a little arrogant comment in the end.

[@irishjay9485]

I know imagine doing one of the worst pitches in a while and saying that. Doomed to fail anyway

[@ReDkOaLa64]

yea that part got me too, she was actually nice enough to give an offer and he disrespected her by sayin that to her face

[@FloorDoughnut]

lmao bro really said "people are struggling and having to borrow money from their families who are also struggling... but how do *I* make money from this? of course to help people struggle together" CEO brainrot is so real

[@FloorDoughnut]

i watch this show to feel something (varying levels of disgust lmao)

[@JoeWilson738]

You should always be looking at ways to capitalise, sometimes you need to play on some peoples issues to get there.

[@FloorDoughnut]

@@JoeWilson738 no you dont lmao

[@goodbot8526]

By your logic everything that helps struggling people must be free.

[@JoeWilson738]

@@FloorDoughnut This is why your going to become nothing, and in a multi-millionaire at 21

[@fitnessboy2024]

So great pitches gets declined and worst pitch gets investors🤔 "Venture Capitalists Don’t Invest In Startups. They Invest in Founders" makes no sense anymore 😂

[@TheManInBlueFlames]

They invest in an idea.

[@nks99999]

Bro did no homework before coming in. Just going off of pure vibes

[@ianlister7333]

I suspect Stephen knows a dozen people, who could take this idea, and actually make it work.

[@dazediss6629]

Yep. And one of them is called Peter Jones.

[@ianlister7333]

@@dazediss6629 fair

[@KnightsofComputation]

😂@@dazediss6629

[@waqasalikhanrajput]

I'm a developer and I can create something like this in a week. It's nothing unique or amazing. Most of thr payment management is done by the payment gateways, so they don't even have to do that. What is unique here.. I don't know..

[@jamiebee1231]

Purple sliders

[@dombo813]

I'm not a developer and I could create something like this in two weeks.

[@TheManInBlueFlames]

The database is unique.

[@XzeroNetwork]

@@TheManInBlueFlames Probably using Firebase 😂

[@Mohonnova]

I've seen hundreds of DD episodes, and this was the most difficult to watch...

[@roses2361]

Agreed. Biggest disaster to date.

[@TyBrocklehurst]

​@@roses2361how about you do it he's nerves got to him I don't see you pitch or business enywhere

[@lus]

Patent attorney here. Never getting a patent in the US.

[@mrhaltonok]

You’ll know then that they’ll patent absolutely any idea in the US. Companies do this for things they don’t ever intend to make, just to stop other US companies from being able to compete

[@padc1]

His patent has been granted 😂

[@GuessTheSongMS]

Not sure what he patented, US already has AAVE and Compound Finance.

[@ryanfletcher1899]

Then go find a new profession cos it’s been granted 😂

[@khandadonb111]

​@@ryanfletcher1899😂😂😂

[@dirtytourist777]

Absolute melt this guy

[@Alex_9652]

How tf did he get 2 offers with really low equity? I would of wanted at least 80%

[@JoeWilson738]

An investor is never going to ask for 80% 💀

[@saintjimmy456]

80%? Probably why they are millionaires and on the show getting deals and you are just in the comments.

[@ianrae1546]

And I wouldn’t want to give 80% of my business to someone that says ‘of’ instead of ‘have’.

[@athertonken]

Just doesn't feel right to commercialise / digitise personal relationships in that way. And if someone does want to formalise a loan they can just get a agreement from a solicitor for a fixed fee oo a few hundred. Here we have a situation where a loan of say £50000 is actually £47500 because £2500 will go immediately to a third party. Imho anyway.

[@abreathingcoffin8089]

actually wisest thing Touker has ever caught

[@Toa_AU]

How can someone have spent soo much time working on the company yet cant answer questions on it 🤔

[@TheManInBlueFlames]

Because he didnt write the code, someone else did.

[@BenjaminGoose]

Can or can't?

[@Toa_AU]

@@BenjaminGoose sorry I meant can’t

[@positivethinker9840]

It's because, the guy didn't spend 5 years working on this, he had an idea and thinks he the next Bill Gates. I would not lend him a £1, cant trust him

[@TravelChimp]

Dragons den is so so much better than Shark tank. I wish this was on TV in AUS

[@AH-te5gs]

8:52 is the worst of it. You're just not backable if you haven't even checked if your brandname is already in use.

[@mauharley]

I don't get it. There's no security underpinning the loan, so if the borrower defaults on the repayments, what happens next?

[@monsterfurby]

Well they won't be invited to brunch at Aunt Martha's anymore, of course.

[@TheJBronson]

lol@@monsterfurby

[@JoelSam]

@@monsterfurby😂😂😂

[@jezzdude107]

It’s probably similar to any other form of unsecured lending like a credit card. In the event of default it would put a mark on their credit file.

[@thomasdalton1508]

They get an automated email from the platform reminding them to make the payment. Nothing else happens. This is just a payment tracking system. It doesn't change the basic facts of the loan. It really doesn't add anything to justify the 5% fee...

[@Healingmusicformindandsoul]

Its sort of like a car. It dont matter how many hours you been working on it, that wont increase its value unless it runs.

[@dombo813]

Targeting the most desperate people in society, to skim 5% off the goodwill of their relatives.

[@ManyMannyMan]

With that crazy valuation and not able to able to explain how your platform is unique, starting to suspect this is just a way to get publicity without actually being serious about investment

[@KINGKING10109]

You just know when someone comes from Money

[@cliverobertson6277]

The odd occasion where the product SPOKE for itself 😂😂

[@sambaker7792]

Surely the main problem is people enter into this sort of agreement on the good faith that it will be paid back. Most people id have thought wouldn't want to use this because the borrowers usually have the initial intention of paying it back, and the lenders would trust that they will. I also don't really see how it makes it less embarassing. Just dont see it taking off really

[@catman2484]

I couldn't agree more... I think it's MORE embarrassing to feel the need to go through tech formalities with your own family and friends, rather than pledging trust that comes with the close bond of these people.

[@TheDandonian]

We have all very different versions of family and friends. Those with proper money, lending 4-8 figure sums to their cousins, for business purposes or to help secure deposits on a house, etc... are usually not afraid to ask for formalities and interest, etc. This isn't like when you borrow £100 until payday.

[@tetri90]

@@TheDandonian Yes but then what is the platform providing ? Exemples of lending contracts can easily be found for free online an the actual payement isn't difficult to make through your banks, so what is the app adding ?

[@samuelbarnard675]

@@tetri90 makes it a lot quicker and you don't need to faff around with writing up contracts and having to worry about any small claims court issues later down the line.

[@kaliou6645]

8:14 When the entrepreneur said those words "I tried my best" 🙅 He should've told the Dragons "I'm OUT!'

[@alancawfield6549]

I don't get out of bed for 2%

[@swgohhillsy928]

Shocking pitch

[@aftabmohammedify]

Even shocking he got not one but two offers.

[@planeguy95]

This was painful. Feel bad for him though. But this was SO unprepared

[@alexcalhoun1382]

Peter’s last line😂😂😂

[@imrank9282]

Yeah, Steven's definitely losing his money on this one. Why tf would someone desperate for money want to pay 5% extra to his platform when asking from family is free, what more to make it look even more like begging with this GoFundMe-lite platform? That 5% would make them get over the embarrassment fast

[@TheManInBlueFlames]

Looks like he didn't.

[@samuelbarnard675]

This isn't £100 till the end of payday, a lot of families I know would love something like this when lending each other 4-5 digits.

[@bartoszstarszobracki8675]

Harry Potter is enterpreneur now?

[@edd9632]

What an awful idea. Nothing splits families and friends apart like lending them money!

[@lotsaspaghetticodejr.6488]

This is actually a great idea. Like how many times do we hear that someone borrowed from mom and dad, or a brother or sister, or best friend and then suddenly they're in small claims court fighting to get it back because the borrower said it was a "gift"? I absolutely love this idea!!

[@shibbymiyah6614]

Wow i cant believe he got offers

[@richardkwaning933]

8:08 - The dragons got him sweating!!

[@MayorSom]

He is an embodiment of our politicans

[@iranicus3393]

Call the press, we found Wally o.o

[@AlanM1966]

Well if nothing else, this episode has shown that you can walk into the den with a crazy valuation, know nothing about how your business works and still leave having had two offers!...... there's hope for us all 😏

[@S66G]

This is such a grim idea lol

[@michaellynn9763]

Absolutely shambolic!

[@NullifidianYT]

"I don't know what they're going to ask" lol!

[@mikemurphy4362]

holy crap his website has so many spelling mistakes

[@vishk123]

Tomorrows lunchtime sorted!

[@user-ck7ny8ek2o]

I think these dragons are puffing the magic dragon.

[@albertwinston5730]

bro is like big head from the series silicon valley

[@1jackal1]

This guy reminds me of elijiah wood in sim city.

[@esseven]

i could have walked in with no product and done a better pitch than that

[@SayNoToWW3]

I just went to justlend and the site came up with an error, lol. It's down just 4 months after this episode was posted?

[@TheManInBlueFlames]

I suppose the value is in the database - data is normally exciting to a Dragon. Only problem is he didn't have the coder and the person who created the tech - who could have explained the interesting part!

[@LuiExcalibur]

Insurance fees on loan companies could make him bankrupt more than marketing

[@randomchannel5686]

I’m really surprised he got offers

[@thokozanisibisi4586]

They is a saying which says if you believe it,you will see it and that is what is happening on this episode,thumbs up for your guts Craig

[@walangbacarita]

Program yang luar biasa.... Sangat terinspirasi. Salam dari Indonesia

[@johnfinnerty4243]

How he got an offer is beyond belief. No information on the patent. 5m valuation. No clear path forward!

[@jay-dubdubb2292]

Ferris Bueller and Harry Potter hybrid!! 😂🤣😅

[@JL-gf3yc]

When are you going to start showing proper episodes from like season 7 below and slightly over when it was dragons den? Theres plenty that aren’t on here I’m talking before Touker and Jenny time

[@sandeshvantveen]

5 perfect interest rate or “transaction fee” because they’re not even the ones lending the money is insane.

[@samuelbarnard675]

That valuation is more than fair. Some companies are valued at hundreds of millions and never made a penny. Spotify has only just become profitable. I'm not sure if Uber actually is yet.

[@moogleking]

Why does he remind me of a budget harry potter lol

[@wzz399]

How is this guy CEO! Guarantee he is bankrolled by wealthy parents.

[@MarkL-we8uk]

Someone's useless nephew

[@65v]

Anyone can be a ceo you can start a business with about 10 dollars

[@wzz399]

How on earth did this guy get an offer. Programme is becoming a joke.

[@donpepsi]

This is a very good idea

[@craig9911]

He needed his own platform to raise the money

[@johnchapmonkey8933]

Funny Stephen saying tech valuations arent over, he would say that with his History.

[@mikemurphy4362]

looks like he runs a crypto site now, not sure tbh theres a simular name and url that goes to a crypto lending site

[@apad000]

What watch is Steven wearing?

[@MatthewJones-cl1sb]

Well done Harry

[@RevanParker]

This is Sparta!

[@roozbehbey]

This was a tough watch...

[@michelemariotti8198]

I cannot believe this guy got an offer. There must be something there I cannot see. Unprepared, clueless, asking for ludicrous amounts of money.

[@londonmadeeasy6676]

The website doesn’t work and it’s now June 2024. I think Steve just blew 100k

[@Ami-ec3tr]

Harry Potter's come a long way, so proud of him

[@qbantz]

Honestly thought he wouldn’t get an offer

[@MJ-YT-USR]

I've just visited their site. The problem I see is that it transforms a favour loan into an investment loan. And once you do that lenders will start to compare returns vs other options. One tax or another will also apply to lenders I suspect, if an interest rate is applied to the loan. I think the platform will work better for lending to people you don't personally know, but the interest rate applied to such a loan would have to beat that available in savings accounts. But in the end I don't think the platform solves the problem at all, which is people (particularly young people) having to borrow like never before.

[@ARyan-ug5vz]

A better idea would be to allow the parents/lenders to decide on the interest rate of the loan. They may not want to charge any interest and its more of a way that just commits the borrower

[@user-jp3qq8ks4k]

Is the website a scam? SSL fails to load on half the pages and coding on front page isn't the greatest..

[@chrissilvester5663]

What an embarrassing watch this was. That guy didn't have a clue whatsoever yet had a valuation of 5 million. Absolute bonkers

[@dplj4428]

8:55 always own all the url cousins. Always.

[@tonysanderson7741]

I think he will do okay - it's actually a great idea if executed correctly, the passion is there and he believes in his product, He just needs some guidance along the way and to fully know their product and competition inside out. Marketing and product awareness will certainly be one of the bigger challenges.

[@hardingtutors7934]

Legends 🎉🎉🎉

[@Cypher791]

I don’t get how this helps… you still have to approach your family and ask for money… and if they say yes you can tell them to make a justlend account… which is beneficial for the lender because it might include a contract and an automatic repayment scheme… but it doesn’t help the borrower… because not only can they be forced to repay this loan…. But now a middleman is charging a fee too… so when you ask your family for money… If you have any sense… you better not tell them about justlend…. 🤨💵

[@Kasperbjerby]

"You have a valuation of 5 million" "Yes but you see i have put a lot of time and effort into this, it's not easy to come up with a more complicated way to borrow money from family"

[@jvillebil13]

When he gets stressed he looks off in space while talking instead of look at the sharks in the eye.

[@Chillobserver]

Dragon's

[@Seizhin]

The website is down

[@DetroitTyler]

Kickstarter with 5% strings attached and loan agreements. Interesting.

[@tothepast]

What happens when you use all your intelligence stats to maxed out luck

[@user-bh4tg9vu5u]

Almost certain that the investment will not go through.

[@johnbruce4417]

When Where’s Wally went casual

[@hamza361]

Half of every dragons den episode is the dragons crying about valuation

[@paulct91]

6:30 - Valuation

[@allessandro2969]

It’s a negotiating tactic, pretty common in any business deal. Elon: I wanna buy Twitter. Jack: That’ll be 64… Billion Elon : kswkjksw Jack: We can do a deal at 44. Elon: Dollars?! Jack: Billion. Elon: Where do I sign?!

[@simplechronology2605]

And why not? If you are going to invest in *anything* , from the stock market to shark chum, valuation is your primary concern. Paying $5 million for a company worth $200K is not how the sharks became rich,

[@3Mizormac]

Lad did you watch the video he wanted £100,000 for 2% and didn’t even know his patent 😂😂

[@David-lm2tl]

they want discount haha