Dragons Den Foldio After The Show

The Dragons Den is a reality TV show in the UK on BBC2. Entrepreneurs or inventors ask a panel of 5 business magnates or Dragons for money in return for a share in their company. Christian Lane appeared on the Dragons Den in Feb 2007, Series 4, episode 4, when he 19.

He presented the Foldio portfolio which was a folder which could reduce the size of paper by 50%. So and A2 sheet was reduce to the size of an A3 sheet. This made the portfolio smaller and easier to carry. It did this without creasing the paper or causing the corners of the pages to become bent. The Foldio he pitched to the Dragons Den can be seen here Foldio portfolio.

On the Dragons Dens Foldio episode Christian Lane gave his pitch for GBP£80,000 for a share of 15% in his company Foldio Limited. After he gave his pitch Duncan Bannatyne opted out. Christian said afterwards he was didn't to lose his nerves so he kept cool. Then two more opted out Deborah Meaden and Richard Farleigh.

That left Peter Jones and Theo Paphitus. Christian didn't want to lose Theo as he was a stationary magnate. Theo made an offer of the full £80K for 35%. Peter Jones stepped in at this point. Peter thought if Theo, one of the biggest stationary business people in the UK wanted in then it would be good idea to get into the deal as well. Peter said he would give half the money with an option to give back 5% of Foldio in a few years if they all made money.

Theo was having none of it; he wasn't having the big fella step in. He said to Christian he would only give him the money for the 35%. Christian accepted.

Six months later at the end of 2007, Christian was actually working from Theo's offices. They worked closely on the Foldio portfolio project. Theo thought the whole idea and design were superb. Christian was busy getting the right manufacturer from China or Taiwan set up within the budget agreed with Theo.

Christian said he got a boost from the Dragons Den Foldio deal and the support from Theo Paphitus. He felt all the ideas he had in his bedroom years ago had more potential to them with Theo's backing.

Theo Paphitus the Dragon is a very successful business man for a reason. Theo knows how and when to make a good deal. His numerous deals are recorded in his book, Enter the Dragon but we will concentrate on the Foldio deal here.

The offer pitched on the Dragons Den Foldio episode was 15% of the company for £80,000. Christian said he expected to have a turnover of £450,000 with a profit of £225,000. Theo Paphitus started off by saying he would not give Christian the £80,000. Theo paused and continued to say the Foldio figures were optimistic at best. It looked like he was opting out. Theo paused for effect and asked Christian to make another offer he was comfortable with.

But Theo also sold himself by giving Christian the advantages of having Theo onboard. Such as he knew the stationary business, he could mentor Christian, help him develop the Foldio and bring it on the marketplace quicker and better than anyone else. Theo put his fingers together and kept eye contact with Christian.

There are two things you need to do when negotiating a deal. Keep eye contact and keep silent. The first one to break the silence or eye contact loses. They are on a back foot for the negotiation.

Christian originally offered 15%. The max Theo would be looking for was 50% or a half of the company. The Dragons only ever take 51% when they think it is a good product or idea but think that the entrepreneur is not competent enough to run the company. A good middle offer would have been 20 to 30%.

Christian was the first to speak and he offered 35% of his company, Foldio Limited. Christian later said he did not want to lose Theo or insult him by making a bad offer. So he offered the max he could. In term of the negotiation he broke the silence first and lost.

When Peter Jones stepped in, Theo didn't hesitate, he kept to his guns. He said his original offer stood. Christian quickly accepted. Theo has never has revealed how much of Foldio he would have accepted, even in the after the show interviews. Again he shows another sign of a good negotiator. Never revealing what you would settle for. If he did reveal that he would take less, then other people could use this knowledge in the future to out negotiate him.

Theo Paphitus allegedly bought the La Senza lingerie chain for £1 and two packets of Benson and Hedges (cigarettes). The management desperately wanted out of La Senza. Theo was negotiating late into the night just before the smoking ban. The CEO was out of cigarettes. Theo sent out for two packs for him and later sealed the deal.

Theo showed the same determination in getting Foldio. Theo proved himself to be a good negotiator by not negotiating. He made Christian choose the deal or nothing.