My name's Ross Lamb, and I'm the founder of Bug Bakes, and I'm asking for £50,000 in exchange for 10% of my business.

My product is simple baked treats for dogs, and it's the UK is first to use insect protein instead of livestock, which might surprise you to learn is a very good thing to be doing.

That's because pet food makes up a significant part of the total impact from the meat industry, which is itself one of the most environmentally damaging practices on the planet.

Farming insects, on the other hand, provides the exact same nutrition while having a fraction off the environmental impact.

I had the idea for this while I was at university.

I spent the last two years creating extensively testing and selling my product, and I'm convinced it is the future of pet food.

Thank you all very much for your time.

I will welcome any questions, but first, would you please come and help yourself to a bag of treats from Max here?

Dog treats made from insects is the business idea.

Ross Lamb and is hoping will fly with the Dragons.

Good boy.

He's offering a 10% equity stake in his company in return for a £50,000 investment.

I know I've got very good sales, and it appears Max, the demo dog, has almost closed the deal already.

This is where I just say my money.

Taylor Giovanni is first to quiz the young entrepreneur, and he wants to know about the bugs that are the basis of his business.

Hi, Ross.

Hi.

So what type of insects to use?

I use crickets.

Just cricket, cricket flowers about brown powder there, if you can see in the table, that's cricket flour on dogs eating bugs.

Is it a big market Maur than dogs eating bugs?

Environmentally friendly pet food is a big market.

For the first time ever, one in three people in the UK fall into the category of either being vegan, vegetarian or flexitarian, which means one of three people actively reduce or eliminate meat from their diet.

So right now, where you selling S I sell online and through about 40 retail shops, you finding them literally one by one, talking to them and selling your product or you selling through a distributor.

Actually, the shops find me.

I've stopped approaching them.

In the last year, I've had about 20 shops stopped me just because they heard about me through word of mouth.

So what's your most often sold product?

It would be the subscription bag.

Yeah, at the moment got 65 Bean only advertising for three months.

So last month, how many signed up last month?

20 signed up, right?

So it's got a bit of traction, but it's not a tractor.

I'm yet to really advertise, and I've spent two years validating that dogs like them orders willing to buy them on the markets there.

And I believe all of that's true.

And the reason I'm here is I think this is a ready to scale product.

Despite a spirited defense of his achievement to date, Deborah Megan discovers the entrepreneur subscription service has yet to take off Ross's dream Dragon.

Sarah Davies seemed a little squeamish about his product initially, but it appears she's warming to his cricket based creations.

Right?

I really like you were like the product like the story, but then I was a little bit worried about the numbers.

What's the dream?

What's the ambition?

I think I've just been limited by the only kind of marketing I've been doing his word of mouth by turning up to markets and events.

Demand, I think, is definitely there for a product like this.

I don't think enough people know about this to say it's selling itself Russ, for the last 12 months.

What do you turn over there?

Just under £10,000?

So it is very much startup.

I'm actually going into the dog is not not in this area, but more toys.

One part of me says Twenties widened my horizon.

The investment would be poor.

Machine is a machine called a rotary molding machine, which means instead of having to roll out viscous, I think I've ruled out about 350,000 biscuits by hand, which is horrible.

What when was that cost?

It costs about £21,000 premises.

I'm looking to keep it in the house just for the very short term in house mineral in little house in the family home.

Is this quite the family affair?

Yeah, I'm sure.

I'm sure my mom's put more labels on packets than she wanted, but what concerns me is you've got to go a long way to do any real turnover.

You should be more.

Yeah.

It's like I'm gonna cry for you.

The entrepreneur reveals a home based business with Mum manning the production line, which is currently only just moving in first gear.

But it appears Peter Jones now wants to discuss one of his common bugbears.

The valuation Ross is placed on his company.

So sounds in the last 12 months has been about £10,000.

Just under.

Yet you currently valued the business at 50 times turnover.

Is there a business that you believe that I could ever get that sort of valuation?

Uh, I appreciate this is at the higher end of evaluations.

The reason I put it there is I've been informally approached by some high wealth individuals who expressed an interest in investing.

And that's the valuation that they've put to me.

So how much have they invested them?

No one else has invested.

Just have just had the the first meetings or telephone conversations.

So I thought you said that They said that they valued the business at 50 times.

They expressed an interest in investing, and they they put forward on investment of 50 times and you didn't buy their arm off.

Well, uh, my first meeting with one of them a week ago.

Seriously, if you have any inkling that that is a possibility, you need to take their money very quickly.

And if they continue to invest it that level, they went behind net worth individuals for very long.

Have you spoken to some of the bigger players that might be able to buy volume?

I was recently approached by pets at home who has to place a test order.

But that was a few weeks ago.

I have not heard back.

Have they placed in order?

No, I don't know why.

To be honest with you, Did he call them yet?

What did they say?

No explanations.

I didn't get through to the exact buying The person I phone.

Waas keep pushing.

Yeah, I definitely Well, I'm not gonna just leave it.

Let's go to keep banging on that door.

One of them gives you the order.

Yeah, I will do that.

But if there's a disconnect for me is that you spent two years of your life doing this and yet you don't seem to have that.

That tenacious punch.

Yeah, I admit the last two years sales haven't been my main focus, so you'll be the best kept secret.

I mean, that's almost barking mad.

It's crazy that you haven't done that.

And yes, why?

Ah, I was You're demonstrating, actually that at the moment it's un investable.

So that's the reason why I'm out.

Thea entrepreneurs Apparent reluctance to push his product is a frustration for Peter Jones, and he ends his interest.

Before he entered the den, Ross was hoping Sarah Davies might be able to help him take over the world with his ICO treats.

But it appears she's Maur inclined to bring him back down to Earth.

You really had me until you uttered those words.

Sales haven't been my man folders.

And then, honestly, you've just lost me there.

What could possibly be a man?

Focus if it's not sales, you know, When I started my business, I spent a lot of time working on research and development.

But your focus has got to be those sales it really has.

And honestly, I was really came to invest.

But you just lost me that it's not for me, Russ.

I don't agree with that.

I think you're right not to push sales at the moment because actually, your resistance is insects.

What said resistance in sex that I need to say that you haven't sold because you're attracted to sex?

That's your problem.

Thanks, Deborah.

For that, Its resistance to insects?

Yes, because if you go to the mainstream retailers right now, with no demonstration whatsoever that anybody is going to buy a pet product made of insects, they are going to say Forget it.

But there's a second problem to this.

This is a treat.

This is not dog food.

So it kind of tackles the problem from the wrong end.

Because if my dog's eating meat was the point in me saying, Actually, the few treats that I give him our insect based it just feels like the tail wagging the dog.

I don't do the puns.

Pun master sits on the end of that.

Oh, there's everything I love about this.

My heart says, Well, I would love to, but my head says it's a long way off.

So I'm really sorry, Ross.

I can't say it's a good investment right now, so I won't be investing.

I might.

Russ, what a little bit disappointed in is your initiative to sell the product.

I'll admit I don't claim to be a well rounded business person yet, and it's not about being a well run a business person.

I think you've got a good head on you, but the problem is that you're not hungry for cells.

So good luck with it.

Thank you very much.

But I'm out.

Thea Entrepreneurs missing zest to sell His product is leading to the dragons losing their appetite to invest a CZ table.

L Vanni becomes the fourth to pass on the proposition only to Castle human remains.

Will he choose to expand his dog related business portfolio?

Hi, Ross.

Grilling.

Is it going this plant?

And I wouldn't say so.

I'm tort on this one because I am in the dog business.

Yeah, if there is a business.

Yeah, I'd like to invest.

However, I don't know that.

Hold on.

Isn't our job in here in the den to establish whether or not we think there's a business to invest in That that's up to me to belong to you.

Thank you.

I'm just talking things through.

I'm allowed to do that.

You just need to make him an offer not subject to finding out if he's got business.

What I could make in your fry one.

He can take it or leave it.

So going back, I don't really know with a It's a business here, but I wouldn't find out.

But evaluations crazy for £10,000.

Head of the business.

It's a tiny business.

I would offer you a ll the money, but I want 50%.

So we're equal partners.

Don't think about it.

Uh, yeah, I think Thank you to Castleman Locks Horns with Debra.

Megan then makes a play for the bug based business.

But the Dragons audacious demand of 50% of Ross's company is way more than the 10% he's willing to give away.

I had to think about it.

Um, I think this time I'll decline your offer as I think I will be able to get that £50,000 for life secretary.

But you have to understand before you say no to me.

Right is that is what I could bring to the party.

I will accelerate you so fast you won't even though I'll be completely honest.

I came in here with a red line of 50% is way above it.

Would you be open to any kind of claw back of equity if I was able to get your money back within the time frame?

But if you got the money back in 12 months ago, down 40% and if I did not, that's 35%.

I would shake, but the club in 12 months, Somebody who doesn't sell you a tough negotiator.

I love the way you look me in the eye.

You got a deal, but good.

Thank you so much.

Okay, we'll do some of this.

Yeah.

Okay, great.

Thanks.

Thank you all for your time.

Congratulations.

Well done.

Well, by some, the confident entrepreneur holds out for better terms on to Castleman reduces his demands on bags a deal.

Ross heads back to Fife with the £50,000 he was seeking.

Andan experienced dragon on board with the business.

I'm absolutely exhausted.

That was one of the most intense things I've ever done.

I see why they're called Dragon's.

I got roasted.

I'm gonna give him a good shake.

The wake him up.

You need a rocket up behind this?

What he needs?

Well, if it doesn't work, you have a lot of bugs too.