Months ago I learned that Canadian mompreneur, Karyn Climans founder of Tail Wags, was going to make a reappearance in the Den. So it was with great anticipation that I watched last night’s Second Chances episode. Entrepreneurs who had unsuccessfully pitched the Dragons in past seasons were given an opportunity to plead their cases again.
Two years ago Karyn debuted her line of plush helmet covers on national television. Although the Dragons were enamoured with her Canadian-made line of products, they disagreed with the valuation of her company and she didn’t get a deal.
Not this time!
This round Karyn made two major changes to her pitch. First, she came in with a more modest valuation – something the Dragons could easily wrap their heads around. Second—her secret weapon—the promise of a huge order of Tail Wags products: An order from Canadian Tire for 10,000 units. The Dragons know that one big order from a mass retailer could lead to a) further orders from Canadian Tire down the road, and b) orders from other mass retailers. Selling your products one at a time or to small boutiques is one thing, but the Canadian Tire order demonstrated the major demand for Tail Wags products and allowed the Dragons to see the potential in the company.
Bruce Croxon and Jim Treliving offered Karyn $100,000 for 30% of her company. Karyn accepted the deal.
But that’s not where this story ends. Eight months later, Karyn has had time to mull whether she actually wants to give up 30% of the company that she’s worked so hard to build. It’s also given her time to consider whether she can raise the funds she needs without giving up a share of her business. In our research for Mom Inc., we found that most small businesses raise money from their families, or by taking out bank loans. (Check out Karyn’s web site where she explains her current situation.)
After watching Dragons’ Den all season, I’m delighted to have the opportunity to write about “one of our own.” (Karyn has contributed to YummyMummyClub.ca here and here.)
Karyn, it was brave of you to venture into the Den the first time. But the second time? That took chutzpah. Congratulations on your well-earned success. We're celebrating right along with you.
For more about the importance of protective gear for kids check out Karyn’s YouTube video.
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