Dragon’s Den has been hugely popular on TV – now there is an online version which brings together entrepreneurs and wealthy investors. Business Editor Finn Scott-Delaney speaks to Sussex-based co-creator Phillip Davies about the aims of his new venture:
A FUNDING platform dubbed the “the online Dragon’s Den” has launched to connect investors with entrepreneurs.
Online start-up match-making service The Funding Room was launched in Brighton and Hove due to its vibrant media and technology sector.
The initiative is the brainchild of Sussex entrepreneurs Philip Davies and Stephen Moore, who want to offer an alternative source of finance to business start-ups – and alternative investment opportunities for wealthy backers.
The service will offer start-ups and newly established firms the same lending terms as high street banks.
The aim is to secure phase one funding for businesses which cannot access formal lending because of a lack of track record or credit history.
Investment typically starts at £5,000 and goes up to £100,000 with low interest rates.
Seasoned businessman Philip Davies was inspired to start investing his own money after nearly losing his fortune in the economic downturn.
As a young man he founded one the country’s first double-glazing showrooms Window Fitters Mate, in Eastbourne. He turned it into a 25-branch company with a £250 million turnover.
Struck by the contrast between his own opportunities and the lack of finance available to young entrepreneurs, he became involved in angel investment services.
Mr Davies, of Hove, wants to upscale and franchise the Funding Room – but saw the prosperity and entrepreneurial spirit of Brighton and Hove as the ideal place to launch.
He said: “When everything went belly-up all of a sudden you couldn’t get any return on your investments.
“I nearly lost a lot of money. I thought maybe some risk in my life would be quite a good thing.
“If we can make it work here we can make it work anywhere.
“There are plenty of entrepreneurs around – the trouble has been finding investors.”
After making his own private investments and a soft launch last year, the Funding Room is hoping to attract new investors to add to the roster.
With new enterprises complaining about bank reluctance to lend, the scheme allows a direct connection either online via Google hangouts or face-to-face.
The service already boasts an investor portfolio that spans several sectors.
Entrepreneurs can browse through a selection of investors and invite one for a meeting or video chat.
They pay a £100 deposit and the investor can either accept or reject the invitation. If rejected the £100 deposit is returned.
The Funding Room takes a 2.5% share of any investment deal.
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