Lab-Grown Brand Kimai Wins Investment on British Reality Show
By Rob Bates | January 26, 2024
"The owners of the U.K.-based lab-grown brand Kimaï received a £250,000 investment on Dragons’ Den—the British business show whose U.S. equivalent is Shark Tank.
The two owners, Sidney Neuhaus and Jessica Warch, appeared on the show looking for a £250,000 (roughly $315,000) investment, in exchange for a 3% stake in their company. They explained that Kimaï received a huge burst of publicity when Meghan Markle wore one of their earrings, after they approached her via cold email. That drew $1.2 million in investments.
The pair said that, in Kimaï’s first year of operations, it posted £350,000 in revenue, which grew to £890,000 the year after, and £3 million after that. But it still posted losses all of those years. (Its 2022 financials can be seen here.)
Warch said this year, the company is on track to do £5 million of sales and could potentially post a £500,000 profit.
“This is the first time I’ve ever been in an investment discussion with a diamond-based high-end jewelry brand,” said Sara Davies, one of the Dragons. “I am clearly realizing that I can’t apply the usual metrics to value a business to value this business. Because you have raised big funds, at a very high valuation, long before you were profitable.”
She agreed to spend the £250,000 for the 3% stake.
Two of the other Dragons, however, declined, saying the ownership stake was too small. And two other panelists—Deborah Meaden and Steven Bartlett—were willing to spend the £250,000 for a bigger stake.
“I think you are un-uninvestable,” said Bartlett. “The story you told me about hounding down Meghan Markle was the moment you had my heart because that’s what it takes.…
“You don’t need money. What you need is value-add. I spent the last 10 years growing the world’s biggest brands. That’s what I’m really really good at.”
However, the duo turned down all three offers—including Davies’, even though she had met their terms.
“The value-add is important to us,” said March. “And what you said, Steven, about [building] a brand is really what we value the most. But unfortunately, we won’t be able to take it at that valuation.”
Eventually, Bartlett did meet their offer. “I can’t just let you walk away,” he said, “so you have a deal.”
Afterward, not all the regulars felt he had made a smart move. “You just invested in a diamond business that isn’t diamonds,” said panelist Peter Jones.
But Bartlett countered that “those founders are diamonds, they’re real diamonds, and that’s why I invested.”
In 2022, Krish Himmatramka, founder of Houston-based engagement ring e-tailer Do Amore, scored a $600,000 investment for ... "
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