Squaring up to the Dragons – A game of chess (Pt. 2)

By Ben Rogers

Of course we had all watched countless episodes in preparation and had learned our 3 minute opening pitch so well that it was just a matter of reciting it calmly and clearly. Simple.  Or so we thought…

Shaff started strong, explaining the origins of the Storemates concept –  the back-story we had noticed the Dragons often like, making it personal, a real passion, not just a hobby. Suddenly mid sentence, Shaff was interrupted by Peter Jones (the one we  hoped would be our investor as something of an internet entrepreneur himself)  “What is this, your life story?” he barked, stunning Shaff into silence. This wasn’t how it was supposed to happen. We were supposed to get our 3 minute bit over with before the sparring began. An early left hook from the Dragon caught us all off guard! Shaff tried to recover his thread, his voice trembling slightly, and managed to pass the baton to me as the middle section, explaining how simple and safe our website is.

Here we go then, my turn to shine: “Storemates is safe and simple to…” “Who are you?” shouted a Dragon. Again, cut off mid flow, I had to introduce myself, then try and remember where I had got to. This was all going very wrong, and nothing like our countless smooth run through. This was a mess! I picked up where I left off and handed the baton to Jay, our third man, to explain what we wanted the money for and how much we were prepared to give up for it. He finished, and so, already exhausted, we offered ourselves to the Dragons for interrogation. “Any questions?”

This is where things go a bit blurred! On the whole I remember we did a good job of answering questions, of explaining the system of trust we had built the site around, and how although we were only a newly formed business we had already built a good solid website that was streaks ahead of any competitors trying to emulate our sharing economy ‘eBay of Storage’. But all the questions we had prepared answers for didn’t come up! Like the worst possible school exam, we didn’t get to show off our gleaming, polished answers to the tricky numbers question, or the one about having rivals (“we see that it validates the market!”) they didn’t even ask us to run through the forecasts. They got stuck at the outset on security, which admittedly is some peoples’ initial concern.

“You guys are all lovely and you think the world is full of lovely people” said Hilary, smiling kindly to us, “but it’s not” “Say that I am a bad, bad man” continued Theo, “ and there are lots of bad, bad men out there, I can use your website to hide my stolen goods in a suitcase”.  I replied “but why would you go to a neighbour’ house, drink tea, chat about the area, then move in your stolen goods, when there is a 24hour lock up down the road where you can stash whatever you like in the middle of the night without having to talk to anyone?” “I don’t think I could sleep at night” continued Hilary, “with someone else’s stuff in my loft”  I think they failed to get that we weren’t targeting the multi-millionaire market, but those who are trying to make the pound in their pocket go a bit further during a recession.

And so we went on, trying to get the Dragons to examine the numbers, to see the potential, to appreciate the huge and growing sharing economy now worth £22 Billion in the UK alone. Take AirBnB, we postulated, have they collapsed as a business because one person abused their system? Has eBay been struggling to survive because on a few occasions people have sold things that are not strictly Kocher?! In fact, have people been put of using cars because apparently some people use them in bank robberies?! The atmosphere was surprisingly jovial and less intense then it often appears on TV. The dialogue between them and us more conversational and the atmosphere was jokey but still very competitive between Dragons.

Listening intently to the Dragons advice!

And so after a 40 minute joust it was not to be. Duncan had stopped stroking his cash, Deborah was still shaking her head, they all looked like it had been a long week, and so despite our best efforts we had to walk away empty handed, but knowing that we had done our best. They liked us and thought we were nice community spirited guys but not ‘mean’ enough for business.

So can’t people build businesses whilst being nice? We reflected. Do you have to become a dragon to compete in this world? We don’t think so. We look at people like Richard Branson or the other Richard from Innocent smoothies often seen on the Apprentice and “Be your Own Boss”. They seem nice! And the fact that the Dragons were actually all really pleasant to us reinforced our conclusion that, this is TV, these business people are also actors but with reputations to protect in the real world.

So we learnt a lot about how to pitch, how to present our story, and with the Dragons probing we were reminded that many people need a lot more reassurances about all the security measures we put in place. Our site now highlights very strongly 10 things we do to keep people and their belongings safe.  So all good advice.

Since the Dragons Den we have gone on to secure investment from people who really did see the huge potential of our  new ‘sharing economy’ venture by being part of it themselves – a ‘crowd funding’ investment platform called www.seedrs.com. And best of all, we learnt that we did know our stuff, and had the confidence to defend Storemates from even the most cynical doubter. Because we believe community solutions such as Storemates, working to use the planet’s resources in smarter, more collaborative ways, is the way the world is moving. On this occasion The Dragons didn’t see it, but as we all know there are plenty of people who have embraced ‘Collaborative Consumption.’ And certainly plenty of people who could do with a bit more space in their lives!

Long live the new Sharing Economy!

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