A TECH business that developed a gadget to locate lost keys and other misplaced items has landed a £100,000 investment on the Dragons’ Den television show.
Raj Sark and Vincenz Klemt, founders of Glasgow-based Connect-In, developed the Bluetooth tracker Xupo to solve the age-old problem of locating lost objects.
The fob the size of a £2 coin works by communicating with a smartphone app via a Bluetooth Smart sensor to find keys, phones, wallets, purses, bags and even family pets.
After their pitch, shown on BBC Two show last night, the Strathclyde University graduates were turned down by four Dragons before technology entrepreneur Peter Jones stepped in with an offer to invest £100,000 in return for 30 per cent equity of the business.
Xupo now forecasts £1 million in revenues in the next year.
Mr Sark, 31, said: “We are thrilled about Peter Jones’ investment and his confidence in our product.
“We couldn’t have asked for a better Dragon, recognising the true value he will bring to our business based on his network and expertise as one of Britain’s leading technology entrepreneur investors.”
Mr Sark and Mr Klemt, 28, met at Strathclyde University, where Mr Sark was studying for a Masters degree in engineering and his partner was an undergraduate studying international business.
They came up with the idea for Xupo in 2009 after Mr Sark lost a travel bag, including a new MacBook and his passport, while connecting flights at Heathrow Airport.
The pair combined their engineering and business skills with practical thinking to design, develop and prototype a wireless tracking sensor, which they launched as “Lupo” in 2014 after a successful £27,488 crowdfunding campaign with Kickstarter. The product has since evolved into Xupo, the £20 gadget that uses Bluetooth 5 technology to offer users the ability to find lost items, ring their mobile and track items on a map.
The growing Connect-In team now employs seven people in Glasgow, including five full-time.
The Dragons’ Den investment will be used to help fund the expansion of the product.
Mr Klemt said: “We went on Dragons’ Den looking for smart investment – not just the money but also the experience and connections the Dragons bring.
“We also wanted to see whether they felt our product was worth putting out on the market, and everyone seemed to like it.
“We were actually seeking £100,000 in exchange for up to 10 per cent of the business, but Peter drove a hard bargain.
“He said, ‘Guys, you’ve done an incredible job, so I’m going to make you an offer’.
“That was a fantastic moment because all the other Dragons had already said they were out.
“Having Peter’s support is amazing. He has the expertise and access to the market, and that’s exactly what we need. His investment will help us further strengthen our position in the UK and expand into Germany and France, followed by Italy and Spain.”
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