Based on my own experience, a viewer can be taken on a roller coaster ride of reactions when tuning in to the adrenalin in the Den, but I don’t think even the Dragons were prepared for the emotional rush when they heard the first of this week’s entrepreneur stories. It was both humbling and inspirational.
“Made in Ukraine with love and bravery”
Ukrainian Yana Smaglo arrived in Leeds two years ago, finding help through the UK’s refugee hosting programme. Like thousands of her fellow Ukrainians she had left at a moment’s notice, carrying with her a backpack, her laptop and some cash savings.
Back in Ukraine, Yana had achieved a Masters in Finance and had been selling her own fashion brand through retail partners. Once safe in her new UK home, she wanted to do something to help her fellow Ukrainians. Using her experience and her savings, she started a reseller company distributing fashion items designed and manufactured in Ukraine. She called it Nenya, which translates as Motherland.
Today, Yana’s turnover has reached £100k, and she now needs help to scale up her business. She asked the Dragons for £80k in exchange for a 10% share of her company. Her goal, she said, was to be the biggest distribution company with the best Ukrainian products and services, all "made in Ukraine with love and bravery". Her pitch left the Dragons visibly moved. I was too.
The Dragons set to work questioning Yana about her business model. We heard that she has so far built up nearly a hundred wholesale partners across three continents and has forged relationships with two department stores in the UK and the USA. She has set up an exclusive license with all her brand partners to sell their products outside Ukraine. But, she explained, her refugee status makes it hard for her to get a loan to expand.
Yana received praise from all the Dragons for her courage and drive, receiving offers from Deborah Meaden, Sara Davies and Steven Bartlett of exactly what she had asked for to help her develop her reseller brand. Touker offered too, while Peter Jones expressed his delight at this result. He explained that he didn’t feel that the business was unique but admitted if no one else had made an offer then his heart would have led him to!
The thankful Yana accepted a joint offer from Deborah and Steven for all of the money for a 5% share each in the 10% equity.
A long wait for the bathroom
Paul Hernon’s space-saving Vertebrae bathroom has been a long time coming. When Paul entered the Den to ‘plug’ his product, he was looking for £100k for a 10% stake in his business. It was twenty three years ago that he first came up with the undoubtedly sleek design – bathroom components including basin, toilet, storage and shower that swivel out from one central backbone. His search for perfection has meant years of prototypes and refining. Touker Suleyman was quick to put the compact convenience through its paces!
Expanding your business overseas? Here’s how we can help.
Setting up a business across continents would be a challenge for any organisation without the additional circumstances Yana experienced.
UK businesses who find themselves all at sea when expanding into a new territory are able to access support from the IPO’s network of international IP Attachés – IP experts based across the world in Europe, China, Latin America, North America, Southeast Asia, Gulf States and India. Find out more through this link: International IP service - GOV.UK
My antennae went up when Peter Jones asked if the IP in Paul’s product was protected. Paul admitted that he had indeed patented his design some years before but it had lapsed. This means that Paul may have lost his exclusive rights to prevent someone else from adopting his invention. Once a patent ceases, anyone would be free to use an invention without requiring the inventor’s permission.
Renewing patents
UK patents need to be renewed regularly to keep the patent in force. There is a grace period during which anyone in similar circumstances to Paul could apply to restore their patent, but it is a sobering thought that an inventor could lose exclusive rights to their own ideas.
Find out about renewing and restoring patents through the following link: Renew a patent - GOV.UK
The Dragons agreed that Paul’s Vertebrae bathroom was a niche product that would do well in an upmarket development. While none felt able to invest, Paul’s pitch wasn’t completely down the pan - co-living investor Touker offered to introduce Paul to people who may be able to help Paul develop his product further.
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Disclaimer:
The purpose of the IPO's Dragons' Den IP blog is to help identify the IP in entrepreneurs’ pitches and highlight how IP works, or could work, in the real-life examples featured. IPO’s authorship of this blog does not constitute its endorsement or sponsorship of any products, individuals or businesses referenced within it.
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