• Monday 31 August 2009
  5:30pm - 8:00pm

• Venue: Deloitte House, 10 Brandon Street

Damsel’s Den Review

Turning the Tables on Dragon’s Den

By Anamika Vasil

Like me, I’m sure many fans of the television show, Dragon’s Den, have wondered what would happen if the roles of the investors and entrepreneurs were reversed.

We’ve seen the entrepreneurs bravely front up to the ‘dragon’ investors with their pitch and product in toe. A few are rewarded and walk away with a deal. But mostly, they leave with a bruised ego after getting their cherished business ‘baby’ torn apart.

In real-life, though, investors tend to keep a low profile so informal opportunities for entrepreneurs to meet them are rare.

So it was encouraging that a group of Wellington business angels took part in Damsel’s Den recently, which not only brought investors face-to-face with entrepreneurs but also - for the first time - turned the tables on Dragon’s Den.

Instead of the entrepreneurs doing the convincing and the squirming it was refreshing to watch the ‘dragons’ pitching for deals for a change.

This time, though, the investors were more angel-like than ‘dragons’. They were relaxed and spoke off the cuff when they got up before a mainly IT industry audience of entrepreneurs and professionals.

The four investors simply presented their credentials and gave an idea of what they looked for in a potential deal. One investor introduced himself by saying that he had not applied for a job for 20 years while another boasted about having an entrepreneurial spirit from a young age. Their wish list for a deal ranged from entrepreneurial traits such as passion and enthusiasm to companies with expertise in their target sector who had already tested their idea or concept.

For their part the ‘damsels’ were equally polite. They asked whether investors were looking for the traditional ‘30 times return’ on their investment, how the investment climate in New Zealand compared with the United States and whether they would consider investing in an established business.

Damsel’s Den was organised by IT professionals’ network, Unlimited Potential, and Angel HQ to create an opportunity for entrepreneurs to meet investors in a relaxed setting and to demystify the investment process for them. Another one will be held next year.

One investor, former Fonterra CIO, Marcel van den Assum, told me he would happily front up to the ‘damsels’ again. It proved especially valuable for him “to experience the ideas, enthusiasm and often well-established business track record’ of the entrepreneurs he met. 

“I’m always keen on a positive environment as that breeds confidence and gets results ... the virtuous cycle!,” says van den Assum. “Certainly I would do it again but for me to be able to add value (capital and capability); I have to focus and cannot cover all that have potential.”

As for the entrepreneurs, they did not waste this precious chance to meet a potential investor. It was during the networking session afterwards that the serious pitching really began.

Angel HQ General Manager Marie-Claire Andrews says Damsels Den was a great success but the participating angels “have limited bandwidth to deal with individual enquiries”. Companies looking for investment should fill in a brief application form at
http://angelsoft.net/angel-group/angel-hq and will be contacted with advice on next steps. 
 
Anamika Vasil is a communications consultant, freelance writer and entrepreneurship specialist. She is a member of Unlimited Potential’s executive committee. Email her: Anamika@communicator.co.nz

It’s about time the tables were turned and the “dragons” (actually a neat group of business angels from Angel HQ) pitched to the entrepreneurs. Come along and find out who they are, what they’ve done, what networks they can access, what other investments they’ve made and how they’re going etc, and of course what they look for in a great opportunity to invest in.

In true UP Style, this event will be fuelled by pizza and beer.