PC: rachelwatkyn.com
Rachel Watkyn secured £60,000 from Peter Jones and Theo Paphitis on Dragons’ Den in exchange for a 40% stake in Tiny Box Company, after entering the programme with no previous experience of running a business. Founded in 2007, the company grew from her difficulty finding ethically produced packaging for her jewellery business into what she describes as the UK’s largest online gift packaging e-commerce company, with an annual turnover of £10 million.
She recalled that her partner’s advice was simple: “Blag it.” Watkyn’s journey included tough questioning in the Den, rapid growth following the television appearance and years of work to establish the sustainable packaging business. When the BBC contacted the business about the proposed investment, Watkyn discovered what had happened.
From struggling to source ethical packaging for her jewellery business to securing investment on Dragons’ Den, Watkyn’s account traces the development of Tiny Box Company from a response to a practical problem into a business reporting £10 million in annual turnover.
Watkyn said the investment programme’s most significant effect was the credibility it gave Tiny Box Company. Looking back, she said she should have conducted more research, developed greater confidence in the business’s value and understood her own worth before entering the Den. She said that when considering an investment, she placed particular importance on the people behind a company, their drive and their ability to work together.
Following the broadcast, the business received more website traffic and enquiries, helping it gain greater visibility among potential customers. Her experience also changed how she viewed the investment agreement. Despite those reservations, she credited the experience with showing her that she could build a successful company with or without external backing. Watkyn’s investment experience subsequently became part of her work supporting other businesses. In her view, a promising idea alone is not enough without a team capable of moving the business forward. Her own recollection also makes clear that the investment was only one stage in that development, with the responsibility for building and sustaining the company remaining with her and her team.
Nevertheless, after extensive questioning about the business model, margins and future prospects, she secured £60,000 from Peter Jones and Theo Paphitis for a 40% stake in Tiny Box Company.
Watkyn said she entered the Den without believing the business had much chance of securing investment. She had no patents, limited trading history and no previous experience of running a business or working in the packaging industry.