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Would Ralf be agile enough to secure a deal for his children's running game in the Den?

Ralf makes a solid pitch but it ends awkwardly when he invites the Dragons to try his product and they all decline.

Duncan Bannatyne jumps in and talks numbers. He finds out the young entrepreneur has made 15 prototypes at a cost of £480 per unit and has sold 15 to primary schools for £950 each making a profit of roughly £7000.

When probed about how he would spend the money he causes Theo Paphitis to blanch at the high cost he is prepare to spend on tooling - the Dragon thinks it way too high.

Further questioning reveals that Ralf has worked on this project full time for five years. When Theo asks how he managed to do this Ralf reveals he had a government grant of £140,000.

This infuriates Duncan who states he is "sick and tired of government grants that are given out to worthless businesses".

Deborah Meaden is equally critical, suggesting that Ralf would have been more economical with his costs if it was his own money. Ralf challenges this but Deborah sticks to her guns and is the first Dragon out.

James swifly follows suit, saying that to return a profit of of £7000 after receiving so much research and development money is "ridiculous".

In declaring himself out Duncan also fires a volley at the German, saying "only an idiot would invest in it".

Peter Jones then transforms the mood in the Den by saying that he thinks it is a good product – he can see its potential and he would be encouraged to invest if the costings were not so high and the young entrepreneur had asked for a smaller investment amount.

Theo asks Ralf if he could bring the costs down if it was mass produced and Ralf says that if he made 1000 units he could make them for £175 per unit. Ralf says he has plans in place for this and thinks the unit costs would be lower still as more and more were produced.

Peter then offers Ralf £60,000 for a 25% share. Peter feels that there is massive global potential if it’s marketed in the right way but he says the costs are still too high.

Theo then matches Peters offer. and Ralf has the money he wanted but is being asked to give 50% of the company away not the original offer of 20%.

It leaves Ralf in a quandary - all the money he needs but at the cost of 50% equity.

He asks the Dragons if they would consider lower their equity share tbut the pair will not be moved.

Seeing they will not budge, Ralf, accepts the deal.

The deal done in the Den:

Peter Jones and Theo Paphitis: £120,000 for a 50% stake in Funky Moves.

Last updated: 16th August 2010