The 10x Rule
Want more business tips? Check out the book Wise Words by Sean Wise, the official blogger of Dragons' Den | This week we heard the usual assortment of reasons for not investing.- not enough profit
- not enough revenue
- not enough sales
In previous posts, I've spent time discussing why sales are so important as proof of concept. I've also discussed what it takes to get a deal. Today, I'd like to chat about the 10 x Rule of investing. While it is true that angel investors (like our dragons) typically seek 10 times their money back over 3-5 years that isn't the source of the "10x rule". The 10x rule means that in order to gain market traction a product must be exponentially better. ie 10 x faster, 10x smaller, 10x cheaper, 10x more profitable. |
The reason for this? --Market adoption. Historically, being a little better isn't enough to gain huge market share fast:
- Beta is a little better than vhs
- Blu ray a litter better than hd dvd
- Plasma a little better than lcd screens
Now compare that to:
- email is WAY faster than snail mail
- airline travel WAY faster than train
- mp3 players can hold way more than cd players
It doesn't take an MBA to see which of the above gained significant market traction and which still struggle for mass adoption.
That....is the 10x rule and if you are going to be seeking high returns on investment you only want to back high risk, high growth companies that meet and beat the 10x rule.
Posted By: on Nov 28, 2007 at 10:00
FAQs
Magic Whiteboard
With an original investment of £100,000 from Deborah Meaden and Theo Paphitis, this portable whiteboard roll became a smash hit. The Magic Whiteboard was created by husband and wife Neil and Laura Westwood and has since become the two Dragons' most successful investment.
Who is the most successful rejected Dragons Den? ›
Dragons' Den rejects who had the last laugh and went on to huge success after the show
- Tangle tee*zer. Shaun Pulfrey ended up making tens of millions from his product (Image: Shutterstock) ...
- Oppo. The low calorie ice cream failed to attract any investments from the Dragons. ...
- Trunki. ...
- Approved Food. ...
- BrewDog.
A plastic case that allows electrical wires to be stored safely and securely, after granting the two Dragons' a 36% stake between them, ChocBox then scored a sales deal worth £25million. Just three months after he set foot in the Den, the partnership had made Peter a millionaire.
How many Dragons Den deals fail? ›
118 episodes were broadcast consisting of at least 893 pitches. A total of 182 pitches were successful, with 31 offers from the dragons rejected by the entrepreneurs and 680 failing to receive an offer of investment.
Which dragon is a billionaire? ›
Peter Jones
The only Dragon still standing from the very first series 19 years ago, the business mogul is also the richest and reportedly has a net worth of £1.2billion, according to the Sunday Times Rich List in 2023.
Which Dragon from Dragons Den died? ›
Hilary Lorraine Devey CBE (née Brewster; 10 March 1957 – 11 June 2022) was an English businesswoman and television personality best known for her role on the BBC Two programme Dragons' Den until she left to present the Channel 4 series The Intern.
Who made the most money on dragons Den? ›
Who is the richest Dragon on Dragons' Den? Rich list revealed
- Peter Jones has the biggest net worth out of all of the Dragons at £1.157billion.
- Touker Suleyman comes in second with the second highest net worth on Dragons' Den at £200million.
- Steven Bartlett has an impressive net worth of £68million.
Peter Jones stands out among the rest of the Dragons, both literally and metaphorically. He's the only Dragon still standing from the very first series 19 years ago, and he's also the richest. According to the Sunday Times Rich List in 2023, he reportedly has a net worth of £1.2billion.
Has anyone been on dragons Den twice? ›
Mr Russell is one of just a handful of people who have appeared on the programme more than once. However, it is understood nobody has ever turned the potential investors down on both occasions. The 35-year-old entrepreneur said he was disappointed at how low their offers were.
Is the money on the table in dragons Den real? ›
'During filming, you get breaks and while I was up talking to Peter Jones his money was on the table, so I picked some up,' he explained. 'The top one was real but the rest of it was just like a good forgery. But for the purposes of the camera it's real enough.
Each Dragon is working as an individual investor. The Dragons can invest as little or as much of their own money as they want. It is up to the entrepreneur to persuade them to match the required investment or pledge to invest a portion thereof.
Who has dragons den turned down? ›
- BrewDog would have been the biggest Dragons' Den success story ever if it was picked up (Image: Jeff J Mitchell/Getty Images)
- Rob Law, founder of Trunki, was turned away because the Dragons didn't like his designs.
- Pasta Evangelists now deliver across the UK and sell in Harrods.
The BBC has edited the episode and added a warning before you watch it. They say: “This programme has been edited since broadcast to clarify aspects of the Acu Seeds pitch. Advice should always be sought from a qualified healthcare provider about any health concerns.”
Do dragons get paid for dragons den? ›
Here was me thinking they'd spend all day listening to pitches from entrepreneurs all for their own image and the chance at making money from the companies afterwards. But no, that's definitely not the case! The Dragons are actually paid a fair whack for their time in the Den, to add to their already huge net worths.
Who owns dragons den? ›
The format was created and is owned by Nippon TV and is distributed by Sony Pictures Television. Local versions of the show have been produced in over 40 countries, as well as one for the Arab world and Morocco; in some countries, more than one version has been aired.
Which Dragon has made the most money? ›
Peter Jones
He's the only Dragon still standing from the very first series 19 years ago, and he's also the richest. According to the Sunday Times Rich List in 2023, he reportedly has a net worth of £1.2billion.
Which dragons have made the most money? ›
Peter Jones has the biggest net worth out of all of the Dragons at £1.157billion. He has managed to earn his huge fortune through multiple business. He set up his first business at just 16-years-old where he made personal computers.
Which dragon has made the most deals? ›
Even though Sara Davies has only been on Dragons' Den for two seasons she has the highest number of average deals per season, making an average of 5.5 investments per season.
What was the failed business from dragons den? ›
Grillstream on Dragons' Den: Here is the Grillstream pitch from 2009. Ask: £120,000 in exchange for 15% equity. The Dragon's Liked the product idea, but they weren't convinced of its ability to make money as a standalone product and ultimately passed on investing.
