Omni, a startup based in the UK that focuses on alternative protein pet food, has recently captured attention after its appearance on the hit business pitching show, Dragons’ Den. This was a remarkable moment, as the company achieved the highest valuation ever recorded for a pet food venture pitched on the show.
Investment and Growth
Co-founders Dr. Guy Sandelowsky and Shiv Sivakumar walked away with an investment of £75,000, secured from well-known investors Steven Bartlett and Deborah Meaden. In exchange for their support, the investors received a 2.5% stake in the company. Both Bartlett and Meaden expressed their admiration for Omni’s impressive growth trajectory since its launch in 2021. Remarkably, the company has already supplied over five million plant-based meals to pets throughout the UK, with a staggering sales growth exceeding 400%.
The Pitch Experience
During the pitch, Meaden commended the founders for their innovative approach, noting that their business model resonated well with her interests. Of course, it wasn’t entirely smooth sailing; Dragons Peter Jones and Tokar Sulyman raised concerns about certain financial metrics. In addressing these inquiries, Shiv highlighted that while it costs £40 to acquire a customer, that same customer could be worth £400 over a two-year period.
Meaden, recognizing the significance of lifetime value in assessing potential, recalled her earlier fascination with an article discussing Omni’s advancements in cultivated pet food. To further engage the Dragons, the founders brought a friendly Labrador on stage, which eagerly devoured Omni’s plant-based offerings. This playful moment added a delightful touch to the pitch, prompting Meaden to joke about the dog’s enthusiastic appetite.
Future Prospects
After the investment proposals were made, the founders demonstrated impressive negotiation skills, managing to reduce the investors’ equity stake from 3% to 2.5%. Meaden later expressed admiration for the founders’ ability to execute their strategy effectively, emphasizing the necessity of educating a new market and praising their proactive methods. She recognized the advantage of their early entry into this burgeoning industry.
Dr. Sandelowsky shared his heartfelt gratitude for the support provided by the Dragons and expressed enthusiasm for Omni’s future with Meaden and Bartlett as partners.
For those interested in entrepreneurial stories like Omni’s, episodes of Dragons’ Den are available to watch on BBC iPlayer, offering a closer look at the journeys of remarkable startups.
Source: Vegconomist