THE co-owner of a tech business that was shown landing an £100,000 investment deal on BBC television show Dragons’ Den has promised to carry on after the funding was scrapped.
Vincent Klemt, joint founder of Glasgow-based Connect-In, said he was not disappointed after technology entrepreneur Peter Jones backed away from his offer to put money into the company, claiming half of the deals made on the programme do not come through in the end.
Audiences for the BBC show saw Mr Klemt and business partner Raj Sark appeared to have secured the investment for their Bluetooth tracker Xupo during Sunday night’s show.
Read more: Glasgow firm has £100,000 Dragons' Den funding for 'lost keys' gadget withdrawn
However, shortly afterwards Mr Jones tweeted to say his investment in the firm had not gone through.
He tweeted: “My investment with My Lupo didn’t go through as some issues arose during due diligence. I still wish Raj all the best in the future.”
Mr Klemt said: “What happens in the Den is that an offer is made, followed by due diligence and further negotiations, as is normal for any investment. Due diligence is a process during which both parties get to discuss the opportunity on hand, discuss the conditions of the deal.
“As with all due diligence, after what is shown on TV follows the process of pursuing the drafting of specific, measurable, agreed upon and timed frameworks and outcomes.
“We are most impressed and inspired by the professionalism with which Mr Jones and his team proceeded and we welcome his public tweet.”
He added: “This should not at all be seen as a disappointment but rather as a business decision taken and approved by both parties.”
Read more: Glasgow firm has £100,000 Dragons' Den funding for 'lost keys' gadget withdrawn
Connect-In had hoped to used the funding to develop its tracking device, which uses a smartphone app to help people find lost or misplaced items.
Around the size of a £2 coin, the developers say it is designed to be fitted to items that people frequently misplace, such as house keys, wallets, and even family pets.
Mr Sark and Mr Klemt met at Strathclyde University, where Mr Sark was studying for a Masters degree in engineering and his business partner was an undergraduate studying international business.
The pair came up with the idea after one lost a travel bag, including a new Macbook and passport, while connecting flights at Heathrow Airport.
The experience prompted the duo to combine their engineering and business skills to develop a prototype wireless tracking device.
The gadget launched as Lupo in 2014 after a successful £27,488 crowdfunding campaign with Kickstarter.
The growing Connect-In team now employs seven people in Glasgow, including five full-time. It had been forecasting £1 million in revenues in the next year.
In a statement issued ahead of the news, Mr Jones’ tweet, Mr Sark said he was “thrilled by the investment and Mr Jones’ confidence in the product”.
Read more: Glasgow firm has £100,000 Dragons' Den funding for 'lost keys' gadget withdrawn
Mr Klemt added the Dragons’ Den investment would have been used to strengthen their position in the UK and abroad.
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