Deborah Meaden has admitted to making one of the worst negotiating decisions of her Dragons' Den career after being so impressed by an ethical fashion entrepreneur that she doubled his requested investment without asking for a larger stake.
During the latest episode, entrepreneur Sam pitched his fashion business Yes Friends, seeking £10,000 for a 2 per cent stake. The company, founded in 2021, aims to prove that ethical clothing can be affordable, starting with a sustainable T-shirt priced at £7.99, which sold 4,000 units in its first month.
Sam's pitch and Peter Jones's challenge
Sam told the Dragons: 'We're on a mission to make ethical clothing affordable and transform the fashion industry.' He emphasised that most brands do not pay living wages, despite factory claims, and pointed to benchmarks from the Global Living Wage Coalition to support his argument.
Peter Jones questioned whether this was simply what every modern clothing brand does, but Sam countered: 'The vast majority of brands aren't doing that… the majority of brands aren't paying living wages.'
Deborah's unprecedented offer
Deborah was visibly impressed by the product quality, the ethical mission, and Sam's knowledge. She said: 'I love absolutely everything that you do. That's why I was interested to understand how deeply you went into it. So it's one thing handing over cash; it's another to make sure it goes into the payslips of the people you want it to go to.'
She continued: 'I am your perfect dragon, I have the audience you're talking to, and I really want to be your investor. [I've] never sat here and been that open ever; it's like the worst negotiating stance a Dragon could possibly take. Do you know what else I'm going to do, which is very un-dragonlike? You asked for £10,000 for 2 per cent of the business. I'm gonna offer you £20,000 for two per cent of the business.'
Sam's decision and ethical investment rationale
Unsurprisingly, a stunned Sam accepted Deborah's offer, even turning down a £30,000 investment from Touker Suleyman, who had asked for a 25 per cent stake. After leaving the Den, Sam said he was 'amazed' at the offer.
Deborah explained she did not want to take a large share of the business, describing her investment as an 'ethical investment'. Dragons' Den airs on Thursdays at 8pm on BBC One.
