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ah is this Omni
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food is that dog inhaling or eating that
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food I would say a bit of
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both hello dragons my name is shiv Cuma
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I'm Dr Guy sandelowski together we're
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the founders of omni we're here today
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asking for £75,000 in exchange for 1% of
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our business I'm a small animal vet
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that's been in practice for just shy of
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10 years and I've seen a number of
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nutrition related diseases in our pets
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at Omni we believe that novel proteins
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can be healthy and as delicious as
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traditional meat-based diets in just
00:38 - 00:43
over two years we've generated £2.5
00:41 - 00:45
million in sales and over 80% of our
00:43 - 00:47
customers are
00:45 - 00:49
subscribers we'd love for a dragon to
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come on board and bring the benefits of
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omni to more pets across the country
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can't not but ask my first question with
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the valuation straight away not often I
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do but obviously it's quite striking 7 1
01:02 - 01:08
half million valuation 2 and a half
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million of sales over 2 years so talk me
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through the last 12 months um well the
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last year we did 1.2 million in
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2023 um this year we're on track to do 3
01:17 - 01:22
million with a gross profit of 1.5
01:19 - 01:26
million and a net loss of £290,000 net
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loss of 290 that's right so 1.2 million
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last year that's right yeah so seven
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times revenue is your your valuation y
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guys I'm assuming the 1% is for my other
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dragons and I'm in for 30% cuz I don't
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get out of bed for 1% you know that how
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are you getting your sales yeah so 90%
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of our Revenue comes from our online
01:45 - 01:52
store and about 10% come from Amazon so
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online uh average basket value is how
01:52 - 02:00
much around 45 to 50 and your cost of
01:55 - 02:02
acquisition around £40 about £40 yeah is
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business the lifetime value of our
02:04 - 02:10
customers is incredibly can I tell you
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something I've I've all that jargon was
02:10 - 02:15
great over covid lifetime value of this
02:13 - 02:17
and that online is down
02:15 - 02:19
generally can you tell me what you I'm
02:17 - 02:21
interested in lifetime value because I
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think that's really important so would
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you mind finishing that sentence about
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lifetime value we've been running the
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business for nearly 2 years and we've
02:26 - 02:30
always managed to main maintain a
02:28 - 02:32
customer acquisition cost of about £40
02:30 - 02:34
and over a 2-year period we're seeing a
02:32 - 02:35
£ 400 lifetime value of our customers
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that's because we're holding on to a lot
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of people who try try the food that's
02:37 - 02:42
fantastic I was about to say that's
02:39 - 02:44
absolutely brilli fantastic TKA turning
02:42 - 02:46
40 quid into £400 that's just in two
02:44 - 02:48
years so I think if you have a dog and
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you find a diet that works for them in
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theory you will continue to feed that
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for the lifetime of the pet so let's say
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that's 10 12 years on average 400 is
02:54 - 02:59
actually not very much it's just 2 years
02:56 - 03:01
consider 12 years but you are pain
02:59 - 03:04
because all due respect guys you're
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making 3 million
03:04 - 03:11
turnover 1.5 million
03:07 - 03:15
gross you're going to end up with
03:11 - 03:17
291 so where is the 1.2 going in your
03:15 - 03:19
overhead majority of it is fueling
03:17 - 03:21
marketing because we understand this is
03:19 - 03:23
a game where you have to invest a lot to
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educate the customer to make them
03:23 - 03:26
understand about our products they come
03:24 - 03:28
on board they love the food and they
03:26 - 03:31
stay with us for
03:28 - 03:33
years can I just say you have presented
03:31 - 03:35
exceptionally well so thank you for you
03:33 - 03:36
we're definitely really nervous well you
03:35 - 03:38
should have been coming in with the 7
03:36 - 03:39
and a half million valuation KN that was
03:38 - 03:41
the first thing you were going to get
03:39 - 03:43
Hamed for and you've kept your kill
03:41 - 03:46
really well so what's the runway look
03:43 - 03:49
like through to exit yeah great question
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so what we see as a long-term sort of
03:49 - 03:54
exit pathway is to become a very
03:51 - 03:56
attractive Target for a um bigger pet
03:54 - 03:57
food company within the space what does
03:56 - 04:01
that mean then in terms of exit what is
03:57 - 04:04
that exit what does that exit look like
04:01 - 04:06
in terms of timing and value we're
04:04 - 04:08
expecting a 3 to 5e period in terms of
04:06 - 04:10
value we're looking at at least a
04:08 - 04:13
minimum of 30 million of sales when we
04:10 - 04:14
would be a target for an acquirer comp
04:13 - 04:16
so 30 million so in three years you'll
04:14 - 04:18
be doing 30 million of sales that's
04:16 - 04:20
right and selling for how much um
04:18 - 04:24
roughly let's say five times multiple at
04:20 - 04:26
least five but your multiple today is
04:26 - 04:31
yeah I mean seriously that's that's I
04:28 - 04:31
think that higher
04:32 - 04:37
unattractive I get really really annoyed
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when when when people overvalue their
04:37 - 04:43
businesses I really do I can't get my
04:41 - 04:47
head around the response to the
04:43 - 04:50
valuation and the exit value so for that
04:47 - 04:50
reason I'm going to say that I'm
04:53 - 05:00
guys look I've G you a hard time that's
04:56 - 05:02
because the valuation in my in in my the
05:00 - 05:04
way I would value businesses if I took
05:04 - 05:09
metrics I'd be a multi-billionaire
05:07 - 05:10
you're delusional about what this is
05:10 - 05:14
worth so I'm
05:16 - 05:23
out guys hi let me tell you where I'm at
05:21 - 05:24
I absolutely love the business and more
05:23 - 05:26
than anything I think you two are
05:26 - 05:31
outstanding but realistically and I look
05:29 - 05:33
at this and I wouldn't be motivated to
05:31 - 05:35
be involved in your business for 1% so
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I'm just going to declare that I'm out
05:35 - 05:41
thank you best of luck thank
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you so guys I
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um I love it so I I think you you are
05:45 - 05:51
really impressive um and I'm not doing
05:48 - 05:54
this of course it takes a lot of my
05:51 - 05:56
boxes so um you won't be surprised to
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hear that I'm going to make you an offer
05:56 - 05:59
um and I'm going to offer you all of the
05:57 - 06:01
money I'm going to ignore your current
05:59 - 06:07
valuations because I'm going to make my
06:01 - 06:11
own valuation um and I want 3% of the
06:07 - 06:15
business thank you thank you yeah thank
06:11 - 06:17
you I have come to learn in the den that
06:15 - 06:19
there's kind of two Central things that
06:17 - 06:21
form my investment thesis which is the
06:19 - 06:22
product and how much I'm passionate
06:21 - 06:25
about the space and how much I can
06:22 - 06:27
relate to the problem the second one is
06:27 - 06:30
entrepreneurs because different
06:29 - 06:32
entrepreneurs could have walked through
06:30 - 06:33
this door with the exact same product
06:32 - 06:35
and I would have valued the business
06:33 - 06:37
entirely different if I didn't think the
06:35 - 06:39
two people stood in front of me were
06:37 - 06:40
killers and I've come to learn from my
06:39 - 06:42
dragon St Investments that have
06:40 - 06:45
performed exceptionally well that the
06:42 - 06:48
single most important factor has
06:45 - 06:52
actually been are they
06:48 - 06:53
Killers um and I think you guys are so
06:52 - 06:55
um I'm going to make you an offer for
06:53 - 06:57
all of the money for 3% of the business
06:57 - 07:01
well thank you both for the offers
07:00 - 07:04
we would love it if you would both
07:01 - 07:06
consider an investment into Omni
07:04 - 07:08
together is that something you would be
07:08 - 07:14
to certainly absolutely and we would ask
07:12 - 07:16
um would you be able to come on a
07:14 - 07:18
slightly lower percentage to share that
07:16 - 07:21
um we would we would ask if you would
07:18 - 07:25
consider 2 and a
07:21 - 07:25
half% 1.25 each is
07:26 - 07:31
it we need to have a comp lab find a
07:30 - 07:34
spare page so they're saying one point
07:31 - 07:37
to be honest it's still a fair deal it
07:42 - 07:48
yeah God you're
07:45 - 07:50
good uh right Ste I don't want to speak
07:48 - 07:53
on behalf of Steven but yeah but we've
07:50 - 07:58
just had a chat
07:53 - 08:00
and so yeah is the answer you got a deal
07:58 - 08:01
thank you very much
08:01 - 08:07
very bre out now and relax yeah
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