Theo Paphitis Duncan Bannatyne Peter Jones James Caan.

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Presentation transcript:

Theo Paphitis

Duncan Bannatyne

Peter Jones

James Caan

Deborah Meaden

RULE 1 – THE PITCH Entrepreneurs must start the meeting by stating their name, the name of the business, the amount of money they are pitching for and the percentage of equity they are willing to give away in their company. They must follow this with a pitch of up to three minutes. If it exceeds three minutes, the Dragons can stop entrepreneurs at any point but they cannot interrupt the initial pitch.

RULE 2 – THE Q & A Entrepreneurs DO NOT have to answer all the questions asked but what they do or do not choose to answer may affect the outcome, for example, if they refuse to reveal net profits. They may ask the Dragons any questions that help them determine whether they are suitable investors for their business.

RULE 3 – OPTING OUT Entrepreneurs' time in the Den is over after all five Dragons have declared themselves 'out'. Also, once a Dragon has declared his or herself 'out', they MUST NOT re-enter negotiation on the deal, and unless there is a compelling reason, they should remain quiet and leave the others to pursue the negotiations.

RULE 4 - INVESTMENTS Each entrepreneur must leave the Den with at least the full amount they asked for or they exit empty-handed. If a Dragon offers less than the full amount, the entrepreneur must try and make up the total by securing an investment from one or more of the remaining Dragons.

DEFINITION: EQUITY There are two ways for companies to raise money for business investment—they can borrow it and/or they can issue shares, otherwise known as stocks. In corporate-finance-speak, stocks are called equity capital and borrowed money is debt capital. Equity (stocks/shares) differs fundamentally from debt in that it represents an ownership interest in a company— you're buying a share of the company, not lending the company money.

DEFINITION: EQUITY An equity holder is not entitled to any regular payment (although most stocks provide for the payment of a cash dividend, this is at the discretion of the company's management). So, buy a stock and you're buying part- ownership of a company. And as an owner, you take a share in the company's future profits.