Contemporary menswear etailer The Idle Man has received a £1.25m cash injection after it failed to attract investment from the entrepreneurs on BBC Two’s Dragons’ Den.
The etailer has secured £510,000 from previous investors Foresight Nottingham and angel investors met through family contacts, £258,000 through crowdfunding site Crowdcube and £500,000 from new investor the Nottinghamshire Pension Fund in a second round of funding completed this week.
Chief executive Oliver Tezcan was seeking £200,000 investment for 5.5% of the business on the TV programme, which was filmed in March and aired on Sunday July 19.
He told the Dragons the company is forecasting sales this year of £2.2m and is targeting a £25m valuation at the end of three years. The company made a loss of £910,000 last year on sales of £300,000.
New Dragon Touker Suleyman, owner of Jermyn Street shirt retailer Hawes & Curtis and womenswear brand Ghost, raised questions on the £25m valuation and its losses.
But fellow new Dragon Nick Jenkins, founder of greetings card etailer Moonpig.com, said his company lost a similar amount in its first year.
As Tezcan was seeking the investment from the Dragons as part of a wider funding round, he was unable to negotiate on the level of equity they would receive.
Suleyman offered the full amount of £200,000 for a 60% stake, which Tezcan could not accept due to the other investors in the company. He left empty-handed.
The Idle Man stocks brands including Carhartt, Edwin, Cheap Monday, Farah, Nudie, Levi’s, Superga and Vans.
It launched a 100-piece own-brand range of streetwear and affordable tailoring for spring 15 and plans to expand the collection at a later date. Prices for The Idle Man collection range from £6 for a T-shirt to £60 for a nylon hooded mac.
The Idle Man launched in 2014 with £350,000 backing from the Nottingham regional growth fund and secured a further £1.2m investment from Foresight Nottingham in October last year.