'Biggest Deal in Dragons' Den History!': Entrepreneur Stuns Panel With £250,000 Ask for 1% of His Business

This week at the BBC Dragons' Den, investors closed the biggest deal in the hit show's 20-year history.

On Thursday night's episode, Francisco Gimenez pitched his business, which is set to transform the hairdressing industry. By the time Gimenez left the den, he had secured $335,870 (£250,000) from the dragons in exchange for only 1% of the company called Yuv.

Gimenez's Yuv has designed a hair colour dispensing system that automatically mixes the perfect shade for users, reducing waste and saving every client time. The smart technology also monitors colour usage via an app.

'To put it in perspective, a salon of four to five hairdressers can use between £800 to £1,000 in colour per month,' Gimenez said during his pitch. 'We have an operating margin of 55%. So a salon that uses Yuv should contribute £500 in profit per month.'

He claimed to have secured multiple patents that the company has been working on for three years. 'We just literally launched,' the entrepreneur stated, adding that the company already has a waiting list of around 500 salons.

When he asked for £250,000 for 1% of Yuv, the steep valuation led the Dragons to erupt into laughter before they began sharing their thoughts on the product.

Touker Suleyman was the first to respond and step out of the deal. 'Look, I think you're great. However, if I have to stick to my true rules, I don't get out of bed for 1%. So, for that reason, I'm out,' he said.

However, Sara Davies appreciated Gimenez's zeal as an entrepreneur and his 'proven track record.' To the surprise of other Dragons, Davies agreed to Gimenez's ask, offering all the money for 1% of the company.

'I'm in. I'd be in on this. And I understand it's a small little seat on a big bus. But I tell you what - it's a good bus to be on, isn't it? 'So yeah, I would give you all that money - the quarter of a million - for 1%,' Davies said.

Meanwhile, Emma Grede echoed Davies' view on the company, but countered with an offer, raising the equity to 3% for all of the money. 'Francisco, I just don't think I can do a better deal for you than Sara's done here. I would need 3% of the business. So, I'm just going to be really honest with you because I think what you're doing is great. That's an offer - that's a straight offer.'

She explained that not all investors are created equal, and some can bring more value to the table depending on the stage the company is in. 'It's just that different people are good at different times. So, I'd give you that offer,' Grede added.

Peter Jones concurred with Grede, while telling Gimenez, 'I made you an offer before I even knew how much you wanted or what equity you were asking for, right?'

'So I'm going to keep my word and stick to that offer. My offer still stands, but with a slight tweak.' Jones sought 3% in advisory shares along with the 1% equity, explaining that this way, Gimenez could keep his cap table clean without offending other investors.

'Not everybody is equal on the cap table when you look through it. You often get 'Avengers' in investors, and I feel like I'm one of those.'

Deborah Meaden also offered all of the money, but for 2% of the business. 'It doesn't bother me if it's a smaller percentage, because if you've got a business that you expect is going to really, really gun it, then, you know, that's a great thing to be part of,' she told Gimenez.

Steven Bartlett, who was relatively quiet till now, said he is going to do something he normally doesn't.

'I actually believe if you took an offer today that was outside of this ask, it probably wouldn't happen. It would annoy too many of the people that have supported you on the journey you've been on. So, I've sat here, the reason I've paused is because I've come to a point that the offer is the offer.' Finally, he offered exactly what Gimenez asked for.

With so many offers from investors with diverse experiences, Gimenez took some time before accepting both Sara's and Steven's deals.