TECH CRUNCH – Mar 7 – M14 Industries was pitching its dating and social app-building platform for an investment of £80k for 15% equity. The M14 founder chose to accept a combined offer from Jenkins and Jones of £80k for 20% equity, giving the young startup a £400k pre-money valuation. Later, M14 was approached by one of its larger clients who had learned that the startup was preparing to take more investment and asked if they could be part of the deal. The unnamed client was willing to invest at a £1.5M pre-valuation, up significantly from the Dragons' Den £400k valuation. But agreeing to 20% in the Den, then closing at 6% a few months later, would cause trouble down the line for the show, and possibly lead to people not taking future deals in the Den seriously. So the deal collapsed. In a final, and perhaps, ironic twist of fate, the unnamed investor would also go on to pull out of the deal in favour of simply remaining a customer. However, M14 Industries closed ∼ £100k with other investors, at a far better valuation, the fonders say.
by Steve O'Hear
See full article at Tech Crunch
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