On Episode 8 of KCB lions’ den, 4 entrepreneurs entered the den full of hope ready to acquire an investment that will transform their businesses. Tonight’s entrepreneurs were: Angani body Art Company, Uvumbi, Fun fibers industry and Suppliers link. Only TWO businesses managed to convince the lions to open up their wallets and make investments worth KES 7 million.
First to enter the KCB lions’ den was Gathu aka “mad kid” an artist with immense passion in body art i.e. drawing tattoos and body piercing. Gathu was vibrant, ambitious and full of energy; you could tell he was in it for the love of the game. He came into the den seeking an investment worth KES 2.5 million in exchange for a 25% equity stake. He needed the investment so as to set up a body art studio/hub where Kenya’s tattoo industry will grow. He started his body art company three years ago and by the end of May 2019 he had made sales worth KES 1.5 million. Individuals spend a minimum of KES 4,000 per day in his tattoo shop and have even gone higher to spend KES 200,000. The business had a great model and the revenues were on point but the only problem was that the lions’ didn’t believe in it. It was so sad to see Gathu walk out of the den without an investment; his business had great promise but lacked the right investor who could add value to it.
In the world of today gossip sells faster than bread, one Daniel came into the den to sell just that. Daniel has an online platform (uvumbi.com) that focuses on telling stories through, text, images and videos. He was seeking for an investment worth KES 750,000 for 20% equity. Mulei quickly jumped in for the haunt and made a deal of KES 1 million for 40% equity stake.
Most onion farmers understand the pain of throwing away onions due to them going bad. Jackeline and Fredrick have come up with a solution that will extend onions shelf life. Supplier’s link is a company that preserves onion by drying, chopping and packing them into containers. The company is registered in Kenya and Rwanda; they were seeking an investment worth KES 1.4 million for 25% equity stake and mentorship. They unfortunately walked out of the den without an investment as most of the lions didn’t understand their business dynamics.
Children having fun is a serious business according to Victor Sila a director at Fun Fibers industry. Fun Fibers industry is a company built on creating innovative solutions to their clients and is very sensitive on going green. They therefore use fiber glass to fabricate and manufacture all their products. The company has 3 revenue channels the Kids corners which retail at KES 500,000, waste disposal dustbins selling at KES 18,000 and the have the motor division section that deals with fiber glass cargo bodies for pickups, trucks. The entrepreneur was seeking an investment worth KES 6million for 22% equity. Only two lions showed interest in this business and battled it out for a chance to get into the business. Darshan and Kris faced each other head on and after a long battle Kris stepped down. He even advised the entrepreneur to take Darshan’s. Darshan and Victor made a deal worth KES 6 million for 30% equity stake.
Lessons learnt from this episode of KCB lions’ den :
- You don’t need everybody to understand your business model and accept it, for you to succeed in getting an investment. You just need the right investor who sees the potential your business has.
- Be innovative and think outside the box
- Take your time before starting your business, experience will play a major role in the success of your businesses.