Inside Dragon’s Den:
Part 4 - Opinions from Experienced Entrepreneurs
Cool Companies magazine 2008 Vol.3 Issue 1
By Claudia Sammer, Founder and Editor of Cool Companies magazine
What do Canadian entrepreneurs think of Dragon’s Den? Cool Companies magazine found 3 different perspectives. This is Part 4 of the article. Here Cool Companies magazine interviewed experienced Canadian entrepreneurs:
Holly Bond, Founder & President, Bulldog Interactive Fitness
Bulldog Interactive Fitness is a fitness centre for youth franchise, 6 employees +10 franchises, bulldoginteractivefitness.com
BOND: Dragon’s Den is a great concept. The first season was excellent! This season, however, I find myself cringing at the exaggerated “Simon-esque” (American Idol) behaviour—the panel all seem to enjoy bullying and belittling the guests on the show. Last week, my 18 year old son got up and left the room because he “couldn’t bear to watch as they all acted like a bunch of hyenas attacking their prey”. I think there should be fewer guests and more time spent in negotiating a deal. I enjoy the way that they show the guests that didn’t make it to the show in short excerpts…but really —can’t we show a LITTLE Canadian politeness during the show? This mob-mentality makes me uncomfortable. I’ve been in the same shoes as the guests, standing in front of a group of savvy businessmen —and I’ve never experienced anything remotely as harsh.
Jamie S. Brown, CEO & Executive Producer, Frantic Films
Frantic Films produces 2D/3D animation & post film effects, 114 employees, franticfilms.com
BROWN: I don’t think TV shows like Dragon’s Den are taking advantage of entrepreneurs. I don’t think there would be many who think there isn’t value generated for an entrepreneur sitting in their living room watching the show. This is access to some of the top business minds and a lot of entrepreneurs or aspiring entrepreneurs will learn a lot by listening to them about how things really work when you’re trying to pitch ideas and trying to raise money.
Are they taking advantage of the people on the show? Well, that’s a different community of people. Those are all smart, right-thinking adults who have chosen, in fact applied, to go on the show. So if they don’t like what happens to them, they are kind of authors of their own situation.
Glen Ronald, Founder and President, Spark - The Branding Shop
Spark - The Branding Shop designs and sells promotional products, 12 employees, spark.ca
RONALD: The Dragons provide a useful reality check. I’ve seen so many people with an idea have this dream that all they need is the right circumstances and it will magically blossom and grow into something spectacular. But the reality is that the results of an idea are only as good as its execution. Da Vinci said, “The supreme misfortune is when theory outstrips performance.” The bottom line question is how committed are you willing to be to make your dream come true?
The Dragons seem to be influenced by each other, not always thinking independently. That’s a red flag for me. Nothing in business is absolute, so if they give absolutes, it’s likely more about ego than actual business.
Perry Kinkaide, Co-Founder and President, Alberta Council of Technology
Alberta Council of Technology is an association focused on Alberta’s preparedness to diversify its economy, abctech.ca. Kinkaide is also involved in Kinkaide Enterprises Inc. which invests in companies as an angel investor.
KINKAIDE: Dragon’s Den today is novel and therefore entertaining. I find it close to what is reality. Some business initiatives just are bizarre. But, by an large, that’s were business begins. It matures and gets more sophisticated later.
The show opens our eyes to the jungle. When you are living in the valley of death, which it’s often called when you’re starting a new venture, you’re often all alone and meet all sorts of unsavory characters, including unsophisticated investors and savvy devils called vultures. The instinct to survive drives entrepreneurs to talk to each other for guidance. That’s a prime lesson in itself—if you ain’t growing a network of advisors, if you aren’t part of a business community—find one. Your chances of survival increase enormously. Few first time entrepreneurs make it—but try and try again and the lessons accumulate.
Dr. Steve Petrone, Founder and President, Quantiam Technologies
Quantiam Technologies has products and services in advanced materials/nanotechnology, 17 employees,
quantiam.com. Over the last 15 years, Steve has raised more than $54M for research and commercialization of a range of world-first new products aimed at creating new wealth. He is currently working to raise another $12M to launch his newest enterprise based on nanomaterials.
PETRONE: Dragon’s Den succeeds in raising awareness of the challenges and hard realities faced by entrepreneurs. Unfortunately, what often comes across (perhaps because of the entertainment value of the show) is that those with experience and money (the Dragons) readily take advantage of those with the ideas and the sweat-equity, and who are generally cash-poor—such is the real world. Notwithstanding that, if you take advantage of someone in a deal when they are down (cash-poor), it is not forgotten, and it is not the basis of a long-term business relationship.
My primary concern with the show is it does not deal with entrepreneurial innovation—and while both can create profit (which is all the Dragons care about), only innovation creates new wealth (which is critical for sustainable growth).
Our space is advanced materials and nanotechnology. It’s new and disruptive technology and a very hard sell to Canadian investors. In Canada, if you are able to find a VC [venture capitalist], and they are capable of understanding and doing the deal, the expectation is 2 years to exit with a 20-40% ROI, with an outside chance of allowing 3 years. Then, when you get into developing a reasonable valuation of the business or the opportunity (methodologies acceptable to those versed in the process), a Canadian VC recognizes how few such dollars there actually are in our country, and raises their expectations accordingly.
The end result is that there are very few VC deals in Canada, and “new wealth-creation entrepreneurship and innovation” is on its death bed. So then, where will we be when resources-based industries dry up and we have missed securing our position in this knowledge-based century?
Evan Chrapko, co-CEO and co-Founder, The Growing Power Group
The Growing Power Group produces clean energy from waste, GrowingPower.com
CHRAPKO: I like watching the show. It’s a funny mix of TV entertainment plus real-world investor perspective “reality’tainment”. If anyone thinks that money simply chases good ideas, watching Dragon’s Den should make it clear that investors seek evidence of execution and a trustworthy management team, too. Mere brainstorms aren’t worth much. Since businesses will inevitably get hit with unforeseeable events (e.g. competitors’ actions, changes in the technology landscape, new laws, supply disruptions, etc.), it’s crucial that your investment money is placed with a team that can respond quickly and professionally, day in and day out.
Lauren Hansen, Founder and President, Image Group
Image Group sells promotional products, 20 employees, imagegroupinc.ca, Hansen is one of Profit’s Top 100 Women Entrepreneurs
HANSEN: Of course Dragon’s Den is 80% pure entertainment, but there are still lessons to be learned—from the emerging entrepreneurs and the investors.
In the case of the JobLoft.com episode, the twist came when the instructor of the 2 emerging entrepreneurs (also a director on the board) appeared at the end. He slammed the amount offered of $200,000, insulting the investors—even though it was the amount of money they were seeking. In the real world this would be a signal for future investors that the 2 young entrepreneurs are not trustworthy—that they had ulterior motives from the start. Were they just looking for free TV time to promote their business? Or, were they duped by their university instructor into believing they were worth much more? And perhaps they are.
What do Canadian entrepreneurs think of Dragon’s Den? Cool Companies magazine found 3 different perspectives. Read the other 2:
Part 1: Introduction to Cool Companies’ article Inside Dragon’s Den
Part 2: Entrepreneurs on the show
Part 3: Interview with a Dragon: Arlene Dickinson
Part 4: Opinions of experienced entrepreneurs (above content)
