‘Off camera negotiations’ cost £100,000 in Dragons’ Den funding

● Investment deal withdrawn for device to find lost phones or keys

The head of a Glasgow-based tech start-up which was offered a TV funding deal with BBC “dragon” Peter Jones has told how negotiations broke down off camera, resulting in the withdrawal of the investment offer.

Vincenz Klemt, co-founder of Myxupo, which sells a bluetooth-enabled device which locates lost items such as phones or keys, told The Scotsman that the firm had been “optimistic” after Mr Jones had offered a deal of £100,000 investment funds on TV show Dragons’ Den in return for a 30 per cent stake in the company, but that further discussions before a deal was finalised had always been on the cards.

Mr Klemt, who met cofounder Raj Stark when they were both students at Strathclyde University, and launched Myxupo after attracting £27,000 in a Kickstarter crowdfunding campaign, said: “We had discussions after the Den, which is quite normal, it is how business works.

“A £100,000 investment for 30 per cent of equity stake is not, from a financial point of view, entirely viable. From their side, there were some technologicalquestionswhich have now been resolved.

0 The start-up Myxupo has developed a bluetooth device to find items like lost keys or phones

“Obviously, we would have been thrilled to have him on board – a man of his experience – he is a very inspiring man.”

He added that the firm, previously known as Mylupo, had entered negotiations on the TV programme looking to sell just 8 per cent of the firm in return for £100,000 of funding.

“Obviously, in the Den, this never happens,” he said.

Business guru Mr Jones tweeted that he had pulled out of the deal shortly after the programme aired on Sunday night – after conducting due diligence on the firm.

He said: “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.”

The idea was sparked when one of the founders lost their travel bag while connecting flights at Heathrow Airport. The experience prompted the pair to combine their engineering and business skills to develop a tracking sensor.