Oluwakemi Shoyinka Abu never bargained for what hit her on the Lions’ Den business reality TV show last week. None of the Lions was willing to invest in her venture simply because her pitch failed the litmus test.
The founder/CEO of Kelly Africana CraftShop, a chrocheting and wool business supply chain had requested for N10 million in return for a 10 percent stake in her business. But all the Lions turned down her offer. They weren’t convinced her business is investable, and again, her valuation was wrong.
For instance, Oluwakemi claimed that all the products that came in since she started the business in June 2020, sold out. Yet, profit made in those nine months of her start-up was a paltry N500,000. One of the Lions, Mr. Kyari wanted clarification on how much she put into the business and her margin. He didn’t think she had a real business but rather, a trading line, which she can upscale. Mr. Dan equally shared a similar opinion. So also Mr. Paul who didn’t think her business was at an investable stage yet. On her part, Mrs. Ogunlesi advised Oluwakemi to take profit from her other more successful business and put it into the crochet one. And to Mr. Bolaji, rather than looking for investors, the entrepreneur needs a bank to provide a revolving loan.
It wasn’t an easy ride for Samuel Clifford, creator and author of the easy-to-read and audio book. Samuel, who had requested for N5 million for 10 percent equity in his Udolu Audio Book, had Mr. Paul offering him all the money but with a 40 percent stake in the venture, which would be reduced to 20 percent in 24 months. Mr. Bolaji too offered him N5 million for a 35 percent stake but with a caveat: he has to set up a workspace in Abuja.
For Chibuisi Chidera, founder of Broelo, an artificial stone veneer, it wasn’t a lucky day either, as none of the Lions was willing to invest in her venture simply because it was underdeveloped.
However, it was a pleasant moment for Olatunde Oludahunsi, founder of First Foods Nigeria Limited, which produces Jubal Glazed Smoked Chicken. Olatunde had come to the Lions’ Den seeking for N7.5 million in exchange for 12 percent equity. Four of the Lions invested in the business but with 33 percent equity in the business. But then, Mr. Paul declined to invest.