JobLoft’s Dragons’ Den Story
Finally, we are able to let the cat out-of-the-bag. It has been killing us @ the Loft not to talk about Dragons’ Den in great detail as we signed an NDA. Most people didn’t believe us when we told them that we didn’t know the outcome. They were right! Imagine trying to keep this a secret from everyone you know, including your own parents. However, not even we could have predicted what was going to happen once we’ve entered the Den.
JobLoft’s journey started early July. We actually heard about the Dragons’ Den auditions one day before they were wrapping up in Toronto. We figured… what’s the worst that could happen and started working on a presentation. Oh and of course, we went shopping for our famous Orange Ties!!!
The morning of, we went through our presentation and in all honesty, we were impressed with ourselves. So we get downtown to meet Sean Wise, who only heard about 30 seconds of our presentation before he started grilling us for information. We delivered the right answers and were invited to pitch to the Dragons. Thanks Sean!
Still living off the adrenaline rush from our audition, we took the advice we gained from the presentation and updated our pitch to the dragons. However, just days prior to entering the Dragons’ Den, we were advised that only 2 people were allowed to deliver the pitch. We didn’t let this phase us and the team tweaked the presentation accordingly.
Even though only 2 of us were going to face the Dragons, we all came out for support. Continuing our tradition of loyalty & team dynamics, our orange ties were again in effect. We arrived on set early morning and watched as people enter the Den. Some left crying, others with a sneaking smile.
As one half (Chris & Lee) enter the Den, the other half (Andy & I) was escorted to the waiting area. Let me tell you that was one of the longest moments in my life. I even tried to listen in on some of the stage crews’ headsets. Just before I made another attempt at trying to eavesdrop onto what was going on, we rushed onto the set as an offer had been put forth.
Now, being rushed into a serious and life changing situation, without being a part of the discussion and having to make a discussion is one thing, however, having cameras on you and recording every word you say is another.
Andy and I entered the room as Chris and Lee approached. Right off the bat, Chris says “we got the amount we want, but the catch is we have to give up 50% of our company to four of the dragons”. We tried to counter for 30% for $200,000.
It was a no go, but the fifth dragon (Jennifer) decided that she wanted a piece of the action too. It was a tough decision to make, do we take their offer and lose 50% of our company, or do we try to tough it out and operate JobLoft.com on our own. When we first decided to give up 15% of our company for $200,000, we only banked on landing 2 of the dragons. However, after seeing as how ALL 5 were interested, we’ve decided that even 50% would be well worth the tradeoff. After all, like Chris says, “would you rather have 100% of a small pie, or 50% of a much larger pie?”
Everything happened so fast, and before we knew it, the deal with the dragons was done.
The $200,000 will be a definite asset to the company, but the most important part is the intangible value that each dragon brings to the company.
We’ve watched the old BBC shows of Dragons’ Den in the past, and it’s usually 1-2 dragons who invest in a company. But to have ALL 5 Dragons believing in your company is truly something else.
To have the founder of La Senza, Boston Pizza and Mr. Lube on our side is truly priceless. Here are two successful gentlemen who understand the pain in recruitment and know our industry like the back of their hands. Not only did we get support from Retail & Food services gurus but, the other dragons understand technology & marketing and are gurus in their own respect.
The power of network, experience and business acumen is worth its weight in gold, far surpassing any monetary value. Not many 23-24 year olds out of university can say that their partners are Laurence Lewin, Robert Herjavec, Kevin O’Leary, Jim Treliving and Jennifer Wood in one sentence.
We definitely couldn’t have done this without the continued support from our family and friends. I still remember just a little under 3 months ago, we made our first major public presentation at DemoCamp with the help of David Crow. As the saying goes … “success is not a destination…but a journey”, so hop on board, it’s going to be a fun ride and this is just the beginning!
Tagged with: boston pizza, cbc, david crow, democamp, democamp8, dragons, Dragons den, entrepreneur, ITM, jobloft, la senza, reality tv, robtv, ryerson, toronto, tv, web 2.0
Peter Konieczny @ October 19th, 2006 at 12:20 am
I just want to say that I just saw the episode of Dragon’s Den where your team was able to bring in a $200 000 investment. Congratulations! You certainly impressed the Dragons, and you came off great. I never heard of this site before this night, but I will be sure to follow it in the future.
Eli Sand @ October 19th, 2006 at 12:27 am
I just caught you guys on Dragons’ Den as well - I usually can’t tolerate the show (really horrid ideas, or the Dragons scheming on how to make too much money out of people), but when I heard you guys describing what your site could do, I had to watch! I haven’t tried the site out yet, but it sounds awesome! Simply amazing and brilliant idea integrating Google maps!
Great job on hooking the deal, but you shoulda gone for 40-45% rather than a clean 50%… just in case you meet someone else you wanna hook in on the company, now you have nothing to give up unless you want to lose control over your own company
Then again, easier said than done I suppose! Heck, I might even end up using your site since I’m out a job at the moment!
Oh BTW - nice to see some Canadians get in on the scene! Go Canada!
Rye Student @ October 19th, 2006 at 12:57 am
Hey guys,
I just wanted to say CONGRATULATIONS .. i just heard that you guys won the $200,000. Way to make Ryerson known and respected! - Ur making the WHOLE school proud — there’s been emails and stuff sent about your appearance now im theres gonna so much more since you guys won!
congrats and keep up the good work!!
Tom Glasgow @ October 19th, 2006 at 4:43 am
Saw the pitch on Dragons Den on CBC - Don’t worry about giving up 50% of the company - Given that it is a partnership, you all have equal say - They see the potential in your site as they will require the sevices of jobloft for there companies - Its a good fit.
Try to keep those employment recruters off the site - I find they waste peoples time only to boost there own data base - As you know people don’t have tme to waste.
Not sure what the next step is for the site? I’ll be running a story shortly on www.canadasfreshfm.com in the coming weeks - We have a dedicated 20,000 listeners, with thousands of views per day.
Best Regards,
Canadsfreshfm.com
Vancouver ,BC
Lee 'buzz' Liu @ October 19th, 2006 at 1:29 pm
Thanks for the feedback guys! It’s always great to hear thoughts from the community.
Jon Cheng @ October 19th, 2006 at 2:10 pm
Congrats guys! I knew you guys had something good going but its amazing how far you’ve come in a such a short time! I don’t think I’m too far off when I say this is probably just the beginning! I can’t wait to see where you guys will be going with this next.
This will be going down in the Ryerson books! Keep up the fantasitc work!
David Crow @ October 19th, 2006 at 2:35 pm
Congratuations guys! Giving up 50% is tough, but I think the trade-off of having these 5 investors working to help you grow is worth it. I love the description of “won the $200, 000″ because that just typifies how folks think about venture/angel investment (it’s not a lottery
.
The one thing that became very clear watching the episode was how calculating and experienced the Dragons were. Once they decided to invest their language changed, the tone of their voices, they were in “sales” mode trying to get you to accept the 50% offer.
Hopefully, you can continue to grow and participate in the emerging Toronto technology scene. Looking forward to seeing you at DemoCampToronto10 on October 23, 2006.
Cheri Garraway-Reuben @ October 19th, 2006 at 3:36 pm
I just wanted to say congratulations to the fabulous four!
I am an employment counsellor, who has had her dreams answered. Not only have you made my job easier, you have eliminated some of the main stress factors for my clients! I certainly wish I had thought of it…hehehe.
My sister was at your press conference at Ryerson on Tuesday…I watched you on the Dragons Den on last night…and this morning I saw Sunny on Rogers! Way to go guy’s, you are making things happen. I don’t know you but I am very proud to say there from the GTA.
Kevin Chan @ October 19th, 2006 at 3:55 pm
I must say, you guys have outdone yourself once again. I am very honour to able to witness such an amazing journey from the beginning till now. To say I am proud of you guys is an understatement. The chemistry you guys
have is amazing and invaluable. Pinch yourself because this is as real as it gets. Stay humble, stay smart, and hopefully enjoy life!
Sean Wise @ October 19th, 2006 at 5:58 pm
What can I say… the Boys in the Orange ties truly nailed it. They highlighted the pain they are addressing, showed the value proposition of their product and stayed away from the complexities of the code behind the website. Further, they were able to draw on both Jim’s and Laurence’s experience in the retail sector.
I met Chris his team at the very last auditions for the show in Toronto. But even then you could see not only their passion but the opportunity they were circling in on. I liked the way they functioned as a team and knew the benefit that the Dragons could bring to the table along side their investment.
Could they have held out for more money? Not sure it matters, as Chris said “would you rather have a large part of small pie, or a smaller part of a much larger pie” (or was it vice versa?). But while investors frequently alter the valuation that they will invest on (i.e. by changing the percentage they want to take in return from their investment), entrepreneurs rarely get to change the amount they are seeking. Why? Because you ask for as much money as you need to get the next milestone down the road (typically 18-24 months from now). Changing your number might indicate your milestone’s aren’t clear or you aren’t clear on the use of proceeds from the investment. Either way, it seldom works.
The best part of this deal however is that post show Robert and Kevin have taken a particular interest in mentoring the “Boys in the Orange Ties” and we look forward to seeing the results of that soon.
Sean Wise,
Online Host and Industry Advisor,
Dragons’ Den, CBC
www.INSIDEtheDRAGONSden.com
Kempton @ October 19th, 2006 at 6:28 pm
Hello “Boys in the Orange Ties”,
You did a great job in the Den. And were very wise to take the 50% deal for the money but more importantly for all five dragons’ involvement. Try your best to learn from them. But remember, even the Dragons are not infallible and they would be the first one to tell you. You have youth on your side and your target audiences are mostly youth. But do take their advice and suggestions in very careful consideration. Plus you kinda have to listen now they are your equal partner.
I have attached the following, a post of my review of your pitch last night. I decided to keep my original writing because I am lazy (except I quoted the link).
I have leave my email and you guys are welcomed to email me if I can help.
All the best,
Kempton
——————
I love these four guys and their matching outfit the moment I first noticed them in July (see my comments at the bottom) in Sean’s site.
http://www.seanwise.com/2006/07/disappointed_fr.html
They really have a great product here. The list of companies that used their services were truly impressive two months ago. And I am sure with the current red hot job market for those high-turn over positions, Jobloft will have a bright future.
The 5 dragons should be able to take them into a new level. And I love the fact that all four dragons are finally in this investment together.
And their matching orange ties with white shirts worked perfectly for their business - make them stand out, young, fun loving. Precisely like their target users.
I will comment more later about their business. Without any careful analysis, the first thought in mind is that charging a fix rate of $599 is definitely too little. But even charging $3,500 (as Robert suggested?) is problematic mainly for the reason that there is no back-end volume-linked-revenue. May be $3,500 (or some amount) as a fixed rate for unlimited job posting. And then some much lower amount ($10?) per actual job application or message sent to job applicants. Something like this.
Again, I need more time when I have free time to spend or someone paying me to think about this. (smile)
Dee @ October 20th, 2006 at 2:19 am
Congratulations on your success on Dragon’s Den. I hope you guys get as much as you can from the experience of working with such successful entrepreneurs
Roy Pereira @ October 20th, 2006 at 5:33 pm
Wow, great news. When I saw you guys at the DemoCamp, I knew that you were one of the best web opportunities that I had seen.
More importantly than your technology (google map mashups, web 2.0 ish, …) was the fact that you had nailed your target demographics, already built the right business development partnerships, and built a team that was balanced and work well together.
Your success will help others in this space get noticed.
Francine @ October 20th, 2006 at 5:36 pm
CONGRATS!!!!
Glad you took the deal - a partnership and mentorship straight out of University, you’ve got to be kidding! So happy for you guys. I saw a couple of you on campus; you guys surely can keep a straight face!
Waytogo getting in the name of ITM and Ryerson in there! You can bet alot of us were watching and will be watching. But then again, who could really doubt you guys! Looking forward to hearing the next Ryerson entrepreneur success story straight from each of you.
Ryerson is proud. Good on ya’!
Robert Wonham @ October 20th, 2006 at 9:33 pm
I saw you guys on the Dragons Den tonight. Great Job.
I was intrigued because I have a lot of experience in the hospitality job market.
In 2003 I started a firm callled TorontoWaitStaff.com and was jit really hard by SARS and then the smoking ban and then the loss of the 2004 NHL Hockey season.
We signed up over 10,000 job hunters and were posting thousands of jobs per month.
If your interested, I would be very interested in talking with your Sales teams.
Sincerely,
Robert Wonham
416.691.3330
Kyle Erhart @ October 20th, 2006 at 11:24 pm
Just wanted to say congratulations! I saw you guys on the Dragon’s Den tonight and guess what the first thing I did after the show was? Visit your website! As a fellow web designer, developer, and enterpreneur I could really appreciate what you are trying to accomplish.
Way to go!
Ryan Coleman @ October 21st, 2006 at 6:41 pm
Hey guys - congrats on the deal. I remember seeing your demo a few DemoCamps ago and thought then “That’s a great idea…” - glad to see you managed to get all 5 Dragon’s on board.
Best of luck going forward - be sure to bring an update to one of the DemoCamp’s in the future.
- Ryan
Xyientific Marketing and New Business Development @ October 23rd, 2006 at 1:47 pm
Hey Jobloft-ers,
Congratulations! I knew that you guys would be successful, keep up the excellent work.
Please contact Xyientific Marketing if you are looking to consult on any marketing initiatives for jobloft. As per our previous discussions, we may be able to help you “blow.”
I’ll keep you posted with the Flow spot.
Xyientific Marketing
xyientific@gmail.com
416.616.8099
Austin Hill @ October 24th, 2006 at 1:56 pm
Hey Jobloft.
As a fellow Canadian entrepreneur I wanted to congratulate you all on your first round of financing. Although I’m a little critical of the show, and the structure of the deal that was proposed to you (http://www.billionswithzeroknowledge.com/2006/10/24/puff-the-magic-dragon-lives-on-cbc/) as I mention in my post - you guys did a great job presenting.
Look forward to meeting you someday,
Austin Hill
Carolyn Marshall @ October 26th, 2006 at 12:53 pm
Hey guys, I had CBC on in the background and your idea and presentation really caught my attention! I’ll happily reccomend it to anyone looking for “a job”.
I’m surprised you don’t have any partnerships with companies that hire for call centre and data entry positions though. These are huge markets with high turnover in the Ottawa area and they are very common jobs for students and people with other service-industry experience to take. It would be an excellent fit for your site and there is currently no authority for jobs like this that I’ve been able to find.
Anyways, congratulations on such a smart and simple idea, I hope to see the site grow and I’ll be passing it along whenever I can!
-Carolyn
Matthew Fong @ November 10th, 2006 at 6:57 pm
Hi guys,
It was great to see you at the ITM Awards night on Wednesday November 8th. It’s always great to have such a success story to motivate us students still in university to create our own businesses.
Wish you all the best in the future,
Matthew Fong
Another startup guy @ November 23rd, 2006 at 5:15 pm
Just some math …
You guys got 36 clients, each paying $600 per month. (Hope I got these right from the show) That’s around $20K per month.
The investors were offering $200K, which you guys can easily make back in 10 months. For 50% of the company, those $200K are just pennies compared to what you guys can earn in the near future (assuming that the number of customers will only grow and that you guys will continue doing this stuff and grow the business).
$200K for 50%. Not only will you loose the control of the company, but more importantly, those investors can intervene and turn the direction of the company they like, which is not a good thing for the company. Because, imho, I don’t think the investors understands a) the technology b) the market (arguably) c) the team dynamics that you guys have already going.
Also, those $200K aren’t gonna go directly into you guys’ pockets anyways, it’ll be going into the company which (with 50% ownership), those investors will no way in hell let those $200K translates into you guys’ salary/dividend paid.
So, your prof is right. $200K is just nothing when compared to what you guys can earn and the future of jobloft. Also, but going onto the show, you guys already got the publicity (which is why I’m writing right now in the first place). And on the “softer” side, good choice sticking with someone who brought you guys up and went through the ups and downs with you guys.
Wish you guys all success and wealth in the future !
- Just another startup guy
pete @ November 23rd, 2006 at 5:43 pm
you guys blew it, you had the deal by the throat and let your loopy prof. insult your partners, and all stood like a deer in headlights. money is one thing and experience is another, you had both within your grasp
you will also learn that loyalty will never make you rich in big business. you will have to learn to seperate emotion from making the right decision. we all have to learn some how
All the best to you in the future
Cheers
Fellow Entrepreneur @ November 23rd, 2006 at 9:49 pm
Hi guys, as a fellow tech entrepreneur, I was heart broken to see what happened with the Dragons and your professor. You guys already know the value of the contacts that the Dragons bring to the table and that the amount of money is only a small part of the equation. And, it is good that you question the Dragons’ time commitment to your business, but remember that the deal was not yet done. I’m willing to bet that once their ‘skin was in the game’ you would see more action – and even if you didn’t, and they were busy doing other things – you would still have access to them when you really needed it. I can’t tell you how important that is.
The Dragon’s are aggressive, arrogant, sometimes rude, and often jump to conclusions too quickly without knowing your business and the market. That is dangerous, yes. But, your professor/advisor acted unprofessionally and selfishly. He did not act in your best interests. Had he been doing so, he would have expressed his reservations openly and honestly. Instead, he acted in a passive-aggressive manner, throwing under-the-breadth insults at your future partners. I agree that loyalty is important and if I were in your shoes, I would not want to easily discard my mentor. But, if he truly respected you, he would have allowed you to make the decision whether to go forward with the deal or not, rather than force the hand of the Dragons himself. He may have helped you get to where you are today, but his behavior is going to keep you there. I hope he has apologized to you. If he hasn’t then it may certainly be time to move on.
Best wishes.
Savannah @ November 24th, 2006 at 10:40 pm
I think that you guys allowed your professor to cloud your judgement…When you have a web site where job seekers are supposed to be able to apply for jobs online, how much good is it going to do if you have no employers lined up? If there is no employers, what are the job seekers going to apply for? Job seekers are a dime a dozen, the hard part is getting employers on board with your company. To sit in a board room with some of the most successful business men in Canada and allow someone to insult them is not a smart business idea. They were able to invest in your new company and try to give you the oppertunity to get off the ground with their money and experience in the real business world, (very different from theory in the classroom) and your advisor shot them down. They did not get where they are today, where they are able to have young business people pitch their ideas, invest their own money in them and give them a chance, by being rude and condesending to the people who invested in them when they started out. Wouldn’t you guys love to be able to go to a meeting in a private jet? And I’m sure one day you will as you have an excellent idea for a business, but the dragon’s could have helped you get there faster.
As I said before, if you just focus on the job seekers, which you can find everywhere, what jobs are they going to apply for if you don’t invest time and money in getting the employers to sign on with you? That is the biggest case of putting the cart before the horse that I have ever seen.
I wish you guys luck in the future, you deserve every success that this business brings, but don’t be afraid to speak out against your advisor if you don’t agree with what he is saying. I understand that you have learned a lot from him, but this is your business and you have to do what you feel is right. If you feel he should have control over what decisions you make than he should invest in you for his 51% of the company.
jonathan frate @ December 4th, 2006 at 3:07 pm
Hello,
I just wanted to tell you to not listen to the nay sayers in the above 2 posts.
There’s more to an investment deal than just money. Clearly you’ve found that out now that you’ve had a flare up. Consider yourself lucky that you managed to unmarry the dragons at this early stage, instead of having to deal with them after they were in and the business was actually making money.
Also keep in mind, that yours is not a capitally intensive business. You don’t actually NEED 200K to get off the ground, and what’s more, you can probably leverage your cashflow in the next 2 quarters to borrow 200K for much less than 50% of your business.
So in short - you should thank your professor for doing the dirty work and giving you a good excuse to walk away from the deal.
Byron Bethel @ June 14th, 2007 at 4:55 am
This one makes sence “One’s first step in wisdom is to kuesstion everything - and one’s last is to come to terms with everything.”
jtzxbcquga @ June 18th, 2007 at 7:16 pm
Hello! Good Site! Thanks you! fpsbstoqls
isaac @ June 28th, 2007 at 3:51 pm
i just saw the show with you last night and i have to saw you guys are very very smart i would use your site but i already have a job
good luck and i hope you have a great future
John @ June 28th, 2007 at 6:08 pm
I saw your repeat last night on DD and was immediately sorry that you guys didn’t get a chance to pitch the option of say $450k for 48% which is just above the midpoint between the investment you sought and the initial offer from the dragons. The editing left the audience with the understanding that 50% was a priority for the dragons. I just read the rest of your story and am glad you guys didn’t let them ride rough-shod over you for the price of a year’s entry salary in IT, which is how I view their paltry offer. Great site and best of luck.
Some quick comments; last night after the airing I tried to find your site and found it subsituted by a GoDaddy.com standard, the audio behind the ‘about jobloft’ page sounds like a take from ‘the it crowd/www.channel4.com and is a bit loud if played in an office environment.
Buck @ July 1st, 2007 at 7:18 pm
I just watched the show again and I will yet again come to the old conclusion that those who do do and those who can’t teach.
You had a chance to get capital but even more importantly, contacts, and you let it slip through your passive hands in that meeting.
You prof may have taken you and the company to the current stage but he can’t take you further. He acting selfishly by sabotaging your deal so he could maintain his control over the company and perhaps yourselves
I hope you do well in spite of this lapse in judgement.
Brett @ July 4th, 2007 at 4:13 pm
The Dragons were cheap from the beginning. The professor was absolutely write in what he was saying.
The professor put the dragons in their place and they were dumb-founded. (They needed that) But the Jobloft boys lost out on contacts. That’s the major asset that the dragons had. Not their money- but their friends.
Also, that one dragon who said something about “dark forces of greed” on the show was the first to throw an insult. These boys were humble and innocent and to say that reflected his own heart and not the hearts of the boys.
Jakob @ July 29th, 2007 at 4:16 am
This is exactly what I expected to find out after reading the title Den Story. Thanks for informative article
JobLoft Snapped Up by Hcareers @ October 29th, 2007 at 7:23 am
[…] JobLoft.com hasn’t been in the spotlight much since its controversial appearance on the Dragon’s Den reality-television show last year where it initially accepted an investment from the dragons only to back out of the deal, which made for great television. […]
Matt Jones @ February 9th, 2008 at 4:27 am
Congratulations guys. Here in the UK it seems we have the same show but a different set of Dragons. Have you ever read any of the Dragons Den Success books?
Dragon’s Den Coming to a City Near You @ April 7th, 2008 at 12:51 pm
[…] Crazy entrepreneurs and their half-baked ideas make for great TV but you never know what a visit to the Dragon’s Den can yield - just ask the guys from JobLoft.com. […]
Fred @ April 8th, 2008 at 11:18 am
Didn’t see the show so I shouldn’t be allowed to comment, but perhaps it also brings an objective view. Sounds like you guys have a great idea and with this PR, it should be able to attract funding from others, and at a better valuation (if it hasn’t already happened). A team that can get yes from the Dragons is worth betting on for most investors. Good luck. When you make it big, return the Karma to others.
The Startups Forum » Blog Archive » Dragon’s Den Coming to a City Near You @ April 18th, 2008 at 4:27 pm
[…] Dragon’s Den Coming to a City Near You Launching a business is no small task. No matter how big an idea you think you have, it still takes a lot of work and a ton of cash. Enter CBC’s Dragons’ Den, where aspiring entrepreneurs pitch their business concepts and products to a panel of Canadian business moguls who have the money and the know-how to make it happen. Crazy entrepreneurs and their half-baked ideas make for great TV but you never know what a visit to the Dragon’s Den can yield - just ask the guys from JobLoft.com. If you and your business idea are up for it, CBC is visiting cities across Canada in April and May looking for entrepreneurs to pitch their business idea. If you want to audition in person, their tour will include stops in Prince George, Kingston, Regina, Saskatoon, Winnipeg, Toronto, Kitchener, Waterloo, London, Kelowna, Calgary, Vancouver, Ottawa, Edmonton, Victoria, Thunder Bay, Sault Ste Marie, Montreal, Moncton, St. John’s, Cornerbrook, Charlottetown, and Halifax. Good luck! […]