Media•19 Jul ’23 06:00•Adapted on 19 Jul ’23 09:00 Author: Eric van den Berg
The final season of the reality TV series Dragons’ Den was largely a sham. The deals that were made in the program rarely materialized in reality.
One ton, five ton, one million euros: in every episode of the popular program Dragons’ Den, the often young entrepreneurs who come to pitch their company are presented with mountains of gold. Hands are shaken, bottles uncorked. The dragons leave no doubt about their intentions. ‘We’re going to do fun things!’ cheers avocado queen Shawn Harris with a distinctive American accent as she shakes hands with an entrepreneur. “We are serious, really serious.” says coffee cup king Bas Witvoet to the owner of a startup in which he wants to invest together with catering tycoon Won Yip. Afterwards there is champagne.
Most deals from the last season eventually fell through. (Via Play)
The intentions may be sincere, in reality the deals rarely go through, according to a BNR tour among participants and dragons who took part in the last season. An investment was promised on TV to 23 companies. The dragons that BNR spoke to named a total of four companies that received the promised amount. (Bas Witvoet could not be reached for comment.) According to the dragons, two companies received less money than promised on TV or a loan instead of an investment. Seventeen other candidates told BNR (on the condition of anonymity) that they had not yet received anything – although one of them hoped to finalize a deal in the short term.
The last season of Dragons’ Den therefore seems to be a low point. NRC posted in 2020 although a deal in the program does not always lead to an investment, but reported at the time on the authority of producer Vincent TV Produkties that almost three-quarters of the agreements from the program went ahead. That percentage now appears to be practically reversed. The production company itself says that the format “leads to a lasting relationship between Dragon and pitcher in about half of the cases worldwide, usually in the form of investment”, but indicates that the last season did indeed have an unusually modest harvest.
‘In hindsight I sometimes think: wasn’t I naive’
The deals fell through for various reasons. Sometimes entrepreneurs change their minds. More often the dragons retreat, often to the surprise of the participants, who may get the feeling before the recordings during the shoot to commit. ‘I asked the editors: ‘Can you just withdraw after the recordings?’ says Julie Munneke-Tromp of Tiny Library: ‘No,’ they said.’
Many candidates nevertheless say they understand that not all deals actually lead to an investment because ‘it is still TV’. Joëlle van der Pol of House of Karts, for example, calls it “logical in itself that a part will not take place.” She herself saw an agreement fail after months of negotiations. ‘But it remains hard – the deal can suddenly be canceled afterwards.’ Anneloes Nieuwenhuijse of Lotties Period Underwear had prepared a festive reception for dragons Pieter Schoen and Shawn Harris after they had pledged a quarter of a million in the program. After a short visit, however, the investment was canceled ‘with great ease’, says Nieuwenhuijse. ‘In retrospect I sometimes think: wasn’t I naive?’
Dragons: things are sometimes presented in a better way
The dragons agree that most deals do not go through as agreed on TV, but in their reading that is mainly due to the participants. Shawn Harris, for example, says he abandoned the deal with Lotties because the marketing costs were much higher than reported. According to Harris, there were also more competitors than Nieuwenhuijse indicated during the recordings. Won Yip also says that in general ‘in the pitch things are often presented better than they are’. Participants also often drop out after the show, sometimes because they think the amount offered is too low. The intention to achieve something together is indeed sincere from the dragons, says Manon van Essen. “The moment you enter into a deal on TV, you think: we are going to marry each other,” says the CEO of Vitamins.com. ‘But it is actually more like buying a house: there are also resolutive conditions.’
The dragons only withdraw if there is a good reason to do so, production company Vincent TV said in a written response. Due diligence, a due diligence by the dragons, by default only follows after the recordings. The fact that a large part of the deals are canceled is therefore ‘not new, not a secret and a logical consequence of what is being started in the format’, writes owner Vincent ter Voert. ‘In real business life too, many and long negotiations are often conducted about participations and not all of them go through.’ The broadcast always takes place, partly to protect the investment that Vincent TV makes in the program. After all, the recordings entail ‘considerable costs’, writes Ter Voert. ‘The participant has signed for the recordings to be broadcast as part of the programme, after being extensively informed about the programme.’
Deal is more like ‘beginning of preliminary phase’ than firm agreement
Participants also typically have many fond memories of the program, even if the promised investment never comes. The contact with the dragons is often experienced positively and the publicity is also favorable for the start-ups. Nevertheless, most participants who spoke to BNR agree on one thing: the program offers an incorrect reflection of reality. On television, potential investments are negotiated to the nearest percent. In reality, in the words of one contestant, the show is mainly the beginning of ‘a very after-track’ for the apparent winners.
The contract also contains a confidentiality clause in which participants promise not to comment on their participation in the program under penalty of a fine. That combination – forced radio silence about a deal that fell through – can be devastating, says Patrick Rodijk of Funding Masters, who supervised a number of participants in the program. The make-believe world on TV then collides with reality. ‘If a deal collapses you want to continue with other investors as quickly as possible, but that is not possible because there is supposedly a deal on the table,’ says Rodijk. Rodijk actually saw one entrepreneur end up ‘in a difficult position’ because of this. “You can’t blame the program for her company’s demise, but it didn’t help.” (The participant in question does not want to tell her story to BNR, but confirms the course of events.) When asked, Vincent TV says that it can handle the duty of confidentiality flexibly.
Company had already stopped when the champagne was uncorked on TV
The champagne and confetti moment in particular is abrasive, says Rodijk. ‘The viewers then think: it’s a deal. The entrepreneurs then think: I’ve got a deal.’ In reality, some companies – when the champagne is uncorked on TV – have already had to cease operations. A more realistic depiction would show more respect for the viewer, says Rodijk. ‘I’d say do better now. It’s such a beautiful format. Also for start-up-loving Netherlands.’
It is unclear whether there will be a new season of the program. Recordings took place in September, but channel ViaPlay is now in dire straits. Earlier this year, the streaming service announced that it would cut back on Dutch productions. An update on ‘content strategy’ will follow this Thursday, a spokesperson from Stockholm said. “We can say more about specific shows after that.” Furthermore, the channel does not comment
2023-07-19 07:00:00
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