7 of the biggest Dragons’ Den businesses that didn’t succeed

On the hit BBC TV show Dragons’ Den, entrepreneurs pitch their business ideas to a panel of investors in hopes of securing investment. 

It all comes down to presentation — the clarity of their pitch, the strength of the business plan, and their ability to demonstrate both market potential and a path to profitability.

But while a successful pitch is a huge win for contestants, sometimes these investments don’t turn out as expected. Even with the Dragons’ support, there isn’t always a happy ending for businesses that were lucky enough to bag an investment.

Below, we outline seven of the biggest  Dragons’ Den investments that ultimately failed.

1. Gaming Alerts

Investor: Theo Paphitis
Amount secured: £200,000

Business: Gaming Alerts was an affiliate marketing company that specialised in promoting online bingo, casino, and poker platforms. It was founded by Ed Stevens and Emmeline Matthews in 2005, with the pair appearing on the show’s fifth season and seeking a £200,000 investment for a 10% equity stake. 

Outcome: after negotiations, Stevens and Matthews successfully secured the funding they asked for, but with 30% equity from Paphitis instead of 10%.

The investment went through and Paphitis continued to support the business. The mid-2000s marked the rise of online gambling platforms, with the sector reportedly being worth £1.8 billion in 2007; the same year that the UK’s Gambling Act was enforced. 

However, despite the large amount from Paphitis’s pockets, Gaming Alerts only lasted for another four years before dissolving in 2011. While no official explanation was released, its demise is likely due to the intense competition in the gambling market at the time.

2. The Generating Company

Investors: Peter Jones and Theo Paphitis
Amount secured: £160,000

Business: a UK-based touring circus ensemble founded in 2001 by Paul Cockle, who appeared on the first series of Dragons’ Den with the hopes of securing a £160,000 investment for a 40% equity stake. 

Outcome: Cockle got his wish and The Generating Company went on to produce large-scale productions around the world, including the “Voyage de la Vie” in Singapore and “Aqua” in Shenzen, China.

However, despite its long-running success, the curtain eventually closed for good for the business, as it later dissolved in 2015. Fortunately, Cockle is still in show business and he now works as a producer, continuing to create and host shows around the world.

3. Umbrolly

Investors: Peter Jones and Duncan Bannatyne
Amount secured: £150,000

Business: in the very first episode to air, Charles Ejogo was the first to enter the Den and pitched his business idea for Umbrolly, an umbrella vending machine designed to save the day when unexpected rain strikes.

Outcome: Ejogo’s pitch successfully secured a £150,000 investment from Jones and Bannatyne. While the offer fell through later on, Ejogo was undeterred and Umbrolly later secured a deal to install 150 machines across the London Underground network. It was even nominated for a British design award in 2007.

Unfortunately, the clouds rolled in for Umbrolly in 2010, as the business was forced to dissolve after losing its UK operating partner. However, it still offers consultative services and sells its products overseas, and Ejogo has become a renowned public speaker.

4. Elizabeth Galton Ltd

Investors: Duncan Bannatyne and Rachel Elnaugh
Amount secured: £110,000

Business: another OG from the first series, founder Elizabeth Galton entered the Den in 2005 seeking a £110,000 investment for 20% equity for her luxury jewellery business.

Outcome: Galton shocked the Dragons with her oversized metallic cockroaches, which looked a lot like twisted garden sculptures. Bannatyne and Elnaugh were prepared to offer the desired amount but wanted 30% equity in the business. Galton agreed, but later rejected the offer following Elnaugh’s financial difficulties with her own company, Red Letter Days.

The financial crisis led the business to dissolve in 2008, but Galton has gone on to build a successful career in brand development, marketing and design, working with prominent brands like Links of London and Radley. She also now owns her own consultancy firm, Black Manta, offering coaching and strategic advice.

5. First Light Solutions

Investors: Richard Farleigh
Amount secured: £100,000

Business: appearing in the show’s third season, First Light Solutions was a technology company that specialised in sonar-based man-overboard detection systems, with a mission to improve maritime safety by providing real-time alerts when someone fell overboard.

Outcome: founder Matthew Hazell expected the company to hit a £63 million valuation. While this ambitious expectation raised eyebrows among the Dragons, Farleigh saw potential in the business and invested £100,000 for a 30% equity stake. 

Having appeared on the show in 2006, First Light Solutions’s idea was certainly an innovative one, considering it was years before artificial intelligence (AI) really took off. While the idea was ahead of its time, the company’s journey was short-lived, as it was forced to abandon ship in 2012, dissolving from the Companies House register. However, Hazell still seems to be active in business and is involved in multiple solar projects.

6. Foldio

Investor: Theo Paphitis
Amount secured: £80,000

Business: Founder Christian Lane entered the Den in 2007 with Foldio – a unique stationary folder product designed to halve the size of paperwork by curving rather than creasing it. At the time, Lane was the youngest contestant to appear on the show at just 19 years old.

Outcome: impressed by the idea, Paphitis invested £80,000 for 35% equity, and Foldio products were later sold at Ryman – the stationary store owned by Paphitis. However, according to Foldio’s Companies House filing history, the business ceased trading in 2015.

Fortunately, this didn’t deter Lane from the business world, as according to his about.me profile, he now owns Smarter, which develops and sells WiFi-enabled kitchen appliances like smart kettles, coffee makers and fridge cameras.

7. Hamfatter

Investor: Peter Jones
Amount secured: £75,000

Business: Hamfatter is a Cambridge-based pop and rock band, who appeared on the show in 2008 to seek an investment of £75,000 to fund their album and marketing efforts.

Outcome: Hamfatter’s single “The Girl I Love” managed to reach number three on the UK indie singles chart. But the band faced criticism for the way it raised funds, with negative comments from The Guardian (plus a dig from NME over its “annoying” name), and its corporate fundraising didn’t exactly align with the band’s ‘indie’ persona.

While it appears Hamfatter are still together, the band hasn’t released a full album since 2011, and their return on investment is looking poor. Jones likely now regrets his roles in the band’s story. In 2019, Hamfatter reportedly had a net worth of just £100k.

Not every pitch hits the jackpot

Dragons’ Den has given many new businesses the chance to shine, but as these stories show, not every investment turns into a success. Even with the Dragons’ support, things don’t always go as planned — whether it’s unexpected challenges or just bad luck.

These examples remind us that starting a business can be unpredictable, and sometimes things just don’t work out, no matter how much backing you have. 

Still, even though these businesses didn’t work out, many of these entrepreneurs went on to launch new ventures, enter new industries or use their experience to mentor others. As you’ll often hear in the world of business, a setback isn’t the end — it’s just part of the journey.

You’ve seen the failures, now check out the most successful Dragon’s Den pitches and meet the entrepreneurs who turned their TV dream into a thriving reality.