Speaker A
Hello Dragons.
Entrepreneurs pitch 100 Group, a trail running world championship, seeking £100K for 2% equity on Dragons' Den with Steven Bartlett's critique.
Key Takeaways
- 100 Group aims to pioneer a global trail running championship with significant growth potential.
- The business model relies on licensing and government partnerships, targeting a large and growing trail running market.
- There is skepticism about the sport's spectator appeal and the founders' branding capabilities.
- Comparison to Ironman shows ambition but also highlights the need for strong marketing and cultural engagement.
- Investment could help scale the races and improve brand positioning to capture a wider audience.
Summary
- João Andrade and Camilo Franciscarcelli present 100 Group, a trail running championship company, seeking £100,000 for 2% equity.
- João shares his background as an ultra runner and entrepreneur, inspired by the Badwater 135 ultramarathon.
- Camilo brings experience organizing world championships and Olympic committees to develop the trail running world championship.
- The championship currently has races in Brazil, Portugal, and Italy, with plans to expand to nine stages worldwide within three years.
- Revenue projections aim for £12 million by 2028, growing from £200,000 last year and £500,000 this year.
- The business model is based on licensing races to governments and selling broadcasting rights, leveraging a growing trail running audience.
- Peter Jones questions the excitement and marketability of long endurance races compared to other sports like Formula One.
- The founders compare their vision to Ironman triathlon, aiming to become a billion-dollar brand in trail running.
- Concerns are raised about branding and cultural relevance, with suggestions that better marketing and media deals are needed.
- The pitch highlights the potential but also the challenges in scaling and making trail running a mainstream spectator sport.
Full Transcript — Download SRT & Markdown
Speaker A
My name is João Andrade, I'm an ultra runner and the founder of 100 Group Limited.
Speaker B
Hello Dragons, my name is Camilo Franciscarcelli, I'm from Italy and I am the CEO of 100 Group.
Speaker A
Today we are here to offer you an exciting opportunity to invest 100,000 pounds for a 2% equity stake in 100.
Speaker A
I've been an entrepreneur for over 15 years, working 18-hour days, 120-hour weeks, mainly in biotech, and that took a toll on my mental and physical health, and so I decided to make significant changes in my life.
Speaker A
So I came across this race called the Badwater 135, which is worldly renowned as the world's toughest foot race.
Speaker A
An ultramarathon held in the Death Valley in the United States, under scorching heat with temperatures rising up to 55 degrees.
Speaker A
So that's
Speaker A
135 miles.
Speaker A
And I decided to complete that race.
Speaker C
Why?
Speaker A
And
Speaker A
And I came across the fastest growing sport in the world, trail running.
Speaker A
And so when I left my previous company in 2019,
Speaker A
I decided to start 100.
Speaker A
After four years since we started the company, I was introduced to Camilo.
Speaker B
I'm a newcomer.
Speaker A
He's a newcomer.
Speaker A
He brings with him his vast experience organizing world championships for diverse sports and also working with the Olympic committees.
Speaker B
And now we want to develop a trail running world championship.
Speaker B
And we now have this year race in Brazil, then Portugal, and we have the final stage in Italy.
Speaker B
In the next three years, we want to explode the competition in nine stages in other countries.
Speaker B
In all the five continents.
Speaker A
Now, let's talk about our finances.
Speaker A
We are projecting 12 million pound revenue by 2028.
Speaker A
Last year we did 200,000 pound revenue.
Speaker A
This year we are on our way to 500,000, and here we are with you today.
Speaker A
To ask your help to drive the company to the next level.
Speaker C
A trail running world championship.
Speaker C
Is the proposal from business partners João Andrade and Camilo Francky.
Speaker C
They're seeking a 100,000 pound investment in return for a 2% stake in their company.
Speaker C
Peter Jones is the front runner with the questions.
Speaker D
João, Camilo, hi.
Speaker A
Hi, Peter.
Speaker D
That was an interesting story.
Speaker D
So you obviously had a very stressful job.
Speaker D
But then what you went on to do feels even more stressful.
Speaker D
Why on earth in your right mind would you go through a stressful life and then say,
Speaker D
I'm now going to go and run 135 miles?
Speaker A
Because I had to fulfill my what I have here somehow.
Speaker A
And I don't think running Badwater 135 is the toughest endurance sport in the world.
Speaker A
I think the toughest endurance sport in the world is entrepreneurship.
Speaker D
Tell me about it.
Speaker D
And that's why, to be fair, I don't go running.
Speaker D
I see Sara on her social running 5K every day.
Speaker D
She looks like she's half dead at the end.
Speaker E
That is not true.
Speaker E
At least one of us gets up and goes for a run.
Speaker E
You can't even run to the loo, Jones.
Speaker E
Right, guys.
Speaker E
So this is trail running.
Speaker A
Yes.
Speaker E
So are there other competitors in this sector doing a lot of trail running, or are you pioneering the trail running sector like ultra marathons are a sector?
Speaker A
Uh, we are pioneering in trail endurance,
Speaker A
which is the long distance running, 100 kilometers and then 100 miles.
Speaker A
That's exactly why the company is called 100.
Speaker E
Right, okay.
Speaker E
Got that bit.
Speaker B
Yeah.
Speaker E
Commercial model.
Speaker E
What's your income stream?
Speaker E
Where's your revenue coming from?
Speaker B
Basically, it's on the the license.
Speaker B
So the license is something that we can compare to the Formula One way.
Speaker E
Okay.
Speaker B
Selling the possibility to bring a competition, one of the only nine races in the world.
Speaker B
In nine magnificent spots.
Speaker B
So the governments of the countries that we are dealing with are very interested to to to have the chance to be promoted in all the circuit.
Speaker E
Okay.
Speaker E
So if I just relay that back to you how I've understood it, the nine countries that you are selecting for the trails,
Speaker E
you get the government of those countries to pay you to host the event there.
Speaker B
Right.
Speaker A
And broadcasting rights as well.
Speaker A
Because there are already 20 million athletes doing trail running.
Speaker A
So already we have 20 million people that might be interested to watch the global competition that was missing.
Speaker E
And so just to check then, so you said you've done three of the nine races.
Speaker A
Yes.
Speaker E
So the way that you scale from where you are now to the 12 million that you're projecting in 2028 is to both scale the three races to a bigger level and to introduce the additional six.
Speaker A
Yes.
Speaker B
Yes.
Speaker E
Okay, I think I've got the model.
Speaker F
João, Camilo.
Speaker F
I love this this area.
Speaker F
And I love this area because I've observed in my friendship circle, suddenly,
Speaker F
it seems like a significant percentage of my my friendship group have become into ultra athletics.
Speaker F
I bought a road bike last week, I've been out riding, trying to do 140 kilometers,
Speaker F
because I'm going with my girlfriend from London to Bordeaux.
Speaker F
So I've been training.
Speaker F
Um, very much into this space.
Speaker F
And I really, really believe it represents the future.
Speaker F
So who do you compare yourself to in terms of a comparable brand in the ultra athletic space?
Speaker A
Well, if we look, for example, into triathlon,
Speaker A
you might have heard of Ironman.
Speaker F
Ironman.
Speaker A
So what Ironman did for triathlon is what we want to be doing for trail running.
Speaker F
Okay, so can you give me a view of their performance financially?
Speaker A
So they're almost a billion dollar brand.
Speaker A
I think they generate close to 150 million dollars in revenue.
Speaker D
Can I just say that, just just take me through this because this is the bit I don't get.
Speaker D
So when you look at the sports and you mentioned Formula One,
Speaker D
when you look at those sports and you see the success,
Speaker A
Yeah.
Speaker D
And there's obviously huge success because of the investment from the manufacturers that are participating.
Speaker A
Yes.
Speaker D
You know, you can see the the money that's been created from it.
Speaker D
And then you've also seen the adoption and the following that that's brought.
Speaker A
Yes.
Speaker D
I get that because you've got a level of excitement.
Speaker D
You've got a shortened time frame.
Speaker A
Yeah.
Speaker B
Yeah.
Speaker D
You've got amazing cars.
Speaker D
So you've got the glamour and the glitz.
Speaker D
And then I'm about to turn on the television and watch a 21 and a half hour race.
Speaker D
With three or four sort of people, what I'm trying to understand,
Speaker D
how are you going to televise and make this exciting to watch?
Speaker A
There are different layers to that.
Speaker A
The first one, you mentioned something very important, manufacturers in Formula One.
Speaker A
So in trail running, you have the brands which are almost, some of them are almost solely dedicated to trail running already.
Speaker A
So for example, trail running shoe market is worth 6.9 billion dollars today.
Speaker D
Yeah, now I get I get that.
Speaker D
And I get I'm talking about I'm sitting at home.
Speaker A
Yes.
Speaker D
In an armchair and I'm flicking over through a race with Lewis Hamilton and it's like nip and tuck and it's lots of noise, lots of excitement.
Speaker D
Over to a trail race.
Speaker D
How are you going to make it exciting?
Speaker A
That's where I wanted to get to.
Speaker A
Because these brands,
Speaker A
so for example, you have Salomon.
Speaker A
You have now the Nike Trail team, the Adidas Terrex team,
Speaker A
just for trail running.
Speaker A
So these trail running shoe manufacturers have their own teams.
Speaker A
And not only the athletes are competing, but now the teams are competing for the ranking as well.
Speaker F
There's so many things that you could possibly do here.
Speaker F
I'm trying to figure out like if it becomes the billion dollar competitor you described earlier,
Speaker F
or it becomes meh based on the core competence of the founders.
Speaker A
Completely agree.
Speaker F
But the branding's not great.
Speaker F
The logo isn't great.
Speaker F
So I looked over at that and I thought, okay, maybe they're not very good at like brand marketing.
Speaker F
And branding generally, and that's a big part of it.
Speaker F
You want to you want to strike at the heart of culture.
Speaker F
This takes off maybe because you get a Netflix deal or something like that.
Speaker F
And then it'll just catch culture and off it becomes culturally relevant.
Speaker F
Everyone, Tom, Dick and Harry influencer wants to do it.
Speaker A
For sure.
Speaker F
So to get that, you have to understand culture, and the only way that I could see for you to understand culture was by looking at that brand.
Speaker F
And I go, they don't quite get it.
Speaker F
They don't, you know what I mean?
Speaker A
One section we need help is exactly what's at the core of the company,
Speaker A
which is communication.
Speaker F
So you you need help and you're offering 2%.
Speaker A
Yes.
Speaker B
Yeah.
Speaker F
I love it.
Speaker F
I believe in it, I think it represents the future.
Speaker F
The challenge is this 2% thing.
Speaker A
Okay.
Speaker F
Immediately becomes not interesting.
Speaker F
You're not even close there.
Speaker A
What could be appealing to you to get involved?
Speaker D
What's your feedback to Stephen's offer?
Speaker A
I wanted to make a counter offer.
Speaker F
Okay.
Speaker A
Before coming here, of course, we study very well the profiles for everyone.
Speaker A
In your case, particularly, this element of communication.
Speaker A
And we see the importance of digital marketing, social media.
Speaker A
So my counter offer is, if we could go back to 100,000 pounds,
Speaker A
we give you 5% of the company and 3% royalty on sales until you recover your money.
Speaker F
I'll do I'll do 100K cash investment.
Speaker F
For 5% of the company and a 5% royalty until the cash is recovered.
Speaker A
Done.
Speaker F
Done.
Speaker A
Yep.
Speaker F
Cool.
Speaker F
Thank you.
Speaker E
Gosh.
Speaker F
Appreciate it.
Speaker A
Thank you.
Speaker F
Thank you so much.
Speaker F
Well done.
Speaker D
In the blink of an eye,
Speaker D
a hasty João accepts Stephen Bartlett's offer without waiting to hear what the other Dragons had to say.
Speaker E
You have four other Dragons.
Speaker A
What about you?
Speaker E
No, no, you've got your deal.
Speaker A
Yeah, yeah.
Speaker A
Let me say something to that.
Speaker A
I was looking at Stephen and thinking he really wants to be involved in helping with the main element that we are looking for.
Speaker A
That's why we've taken the deal.
Speaker E
That's it.
Speaker F
Thank you so much.
Speaker D
No, João, I was going to offer you all of the money for 2%.
Speaker E
Yes.
Speaker D
Do you know what?
Speaker D
I'm shocked.
Speaker A
Thank you.
Speaker A
Thank you.
Speaker A
We took Stephen's offer because we knew exactly what we are looking for in terms of cash and expertise.
Speaker A
When we see one person very excited and the others thinking too much, the deal is on the table, we don't we cannot miss it.
Speaker A
Because sometimes the conversations change in Dragons' Den and then everybody is out.
Speaker A
So that's why I took the offer before different conversations could take things downhill.
Speaker B
What is very important for us that we have Stephen in the team.
Speaker B
That's absolutely correct.
Speaker E
I'll tell you what though, I'm going to use that strategy again.
Speaker E
When you've got four other Dragons poised waiting to make an offer and you just get up and offer your hand out.
Speaker F
There you go.
Speaker E
Straight in.
Speaker F
Perfect.
Speaker E
We'll call it the Stephen Bartlett move.
Topics:trail runningultramarathon100 GroupDragons' DenSteven Bartlettsports entrepreneurshipIronmansports licensingendurance sportsbrand marketing
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