Written by Ilana Grostern.
For details of our original response to our Dragons' Den appearance, please click here.
As many of you are aware, Amy and I appeared on CBC's Dragons' Den on January 18, 8 months after we had filmed our hour long pitch to the Dragons back in the Spring of 2011. When we last left you, we appeared to have entered into a deal with Jim Treliving and Arlene Dickinson whereby they agreed to give us $100K in return for 25% of our company. The truth is that at the time of the airing we were still in the due diligence process and no conclusions had been reached about how either party intended to proceed with the deal. So the purpose of this post is to update you on what's happening behind the scenes!
Wow, what an amazing last three and a half months it has been! Peers had been telling us for years that we needed to go face-off against the Dragons but until April 2011 we simply did not feel ready. And when the time was right, it was clearly right as we skipped the audition process completely and were selected to pitch by merit of our web application alone.
The main reason we pitched to the Dragons was for the publicity, plain and simple. We wanted to prove to the Dragons' and to our Canadian audience that manufacturing and distributing cloth diapers do make for a viable business model and that motherhood and business can and do mix nicely. And prove it we did! The Dragons were so impressed by our pitch that they made us an offer right there, and we shook on it. It is important to know, however, that before we went on the show we signed a loooooooong waiver, and one of the points to which we happily agreed was that any deal that we shook on on the show was non-binding by either party. It's all in the name of good television, after all!
So we are sure you are dying to know what the outcome of our Dragon Dealings has been! Both parties have very amicably walked away from the deal. Neither Jim nor Arleyne, in the end, were interested in working with a company whose growth is slow and steady, and from our side of things Amy and I are VERY happy being each other's only partner! Too many cooks spoil the broth, or so they say.
We are SUPER happy to report that the publicity we received from our six minute airing has launched our brand to a new level of recognition. Thanks to you, our customers, and our fantastic retailer family, this Canadian-made model is standing comfortably on its own two feet! And as such we have decided to step back from our intention to manufacture a complimentary line overseas. We have not ruled out this option down the road but for the foreseeable future we have decided to focus on things here at home and are working hard to increase production so we can meet this new, unprecedented and self-sustaining level of demand. We are proud to be manufacturing our line right here in Montreal, and we know you are happy with this decision as well! It has been said that you vote with your wallet and so many of you have voted for us and we sincerely thank you.