Charlotte Morley, founder and ceo of shared children’s wardrobe, The Little Loop, entered the Den last week and came away with investments from two Dragons and twice the amount she had pitched for.
When Charlotte pitched her children’s clothing rental business to BBC’s Dragon’s Den, she asked for £70,000 in return for a 7.5% stake in The Little Loop. The entrepreneur explained that since having children, she had discovered there was ‘a huge problem with children’s clothes’.
She explained that the large cost of updating children’s wardrobes as they grow, as well as the waste when throwing away barely used products. As a result she set up The Little Loop, which invites parents to pay a monthly subscription cost of £18 to receive £165 worth of clothes from brands including Frugi, Polarn O. Pyret, Little Green Radicals and more.
Charlotte explained in the Den: “The Little Loop is reinventing this hugely broken wheel. Parents can choose from the best ethical, sustainable brands, keep the clothes for as long as they need them and then swap them any time.”
During questioning on the programme, Peter Jones declared himself ‘out’ due to the strength of the fast fashion market. But Charlotte went on to receive offers from all four of the other Dragons, each offering her the full amount for varying stakes in the business. Deborah Meaden commented: “I actually want to be part of something that makes a difference. While Sara Davies added: “I love the business, but most of all, I think you are a fantastic entrepreneur.”
In a first for the Den, Charlotte then asked if Deborah Meaden and Steven Bartlett would consider investing the full amount each, taking a 12.5% stake each in The Little Loop.
Deborah agreed and Steven, who had originally offered the full amount for a 15% stake, said: “Charlotte, I think you’re ten out of ten. Just by adding Deborah Meaden to your business, it becomes hugely more valuable. So on that basis, I would increase my personal valuation of this business and therefor I’m willing to reduce my equity ask to 12.5% for sure.”
After the pitch, Charlotte said: “I can’t quite believe what just happened. I think I’m in shock. The Dragons that have invested are incredible. I’m just so excited for what we might be able to do together.”
You can watch the pitch on BBC iPlayer by clicking here. Charlotte’s pitch begins at 43.30.