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Tim and Tom are asking £50,000 for only a small slice of their young business. In the fast-moving and competitive technology market, they will need all their creativity to win over the skeptical Dragons.

The two young inventors smoothly introduce their business and product. Tom demonstrates the luminous graffiti wall to the Dragons, while Tim names a handful of impressive clients and gives their ambitious business aims.

Theo Paphitis is the first to ask the technical questions. He doesn't see a long-term market for the product after the novelty wears off. Tim and Tom are one step ahead of this question and say they're marketing their product to schools.

Duncan Bannatyne doesn't think the product is innovative enough to sell to schools. Furthermore, isn't it encouraging children to do graffiti? Tom and Tim respond that, on the contrary, their product gives children a legitimate outlet for their creative sides.

Duncan, though, can't see why anyone would want to buy the product, and declares himself out.

Deborah Meaden, a woman with her priorities straight, tries the spray wall to see if it's fun. Although her vampire bat picture isn't immediately recognisable to the other Dragons, Deborah can see the potential; she wants to know if people will be prepared to pay to play with the board.

Their clients have never tried charging an admission fee, but Tim and Tom reveal that they also rent out machinery to print people's designs onto T-shirts, something they didn't mention in their pitch.

James Caan asks how their company is progressing against their business plan. He isn't sure that the idea will scale up as well as Tom and Tim hope. James thinks the events market is too small, whereas the other areas of the business plan aren't developed enough, and declares himself out.

Theo's opinion is also clear: there is nothing here for him to invest in.

However, a surprise is coming from the unusually-quiet Peter Jones. Peter wants to know more about the infra-red 'spray can' itself. This is where he thinks the unique factor is, and not the screen, software or other equipment.

Surprising the other Dragons who have already dropped out, Peter offers half the money - £25,000 - for 25% of the business. Deborah, the only remaining Dragon, offers the full £50,000 for 40% - and, as an alternative, offers to match Peter's offer.

However, Tim and Tom initially offered 10% and this is far more equity than they are willing to give up. Finding no flexibility in Peter's percentages, they and hastily step back for a discussion.

Tom and Tim offer of 17.5% each to Deborah and Peter, but Deborah values her own contribution too highly to accept this. Peter's counter-offer of 45% between him and Deborah is clearly beyond what Tim and Tom had in mind. Peter is surprised that they would turn him down over a slim margin.

Deborah finally says she'll accept 20% if Peter will. The perilous negotiation pays off for Tim and Tom, and they accept this offer.

The deal done in the Den:

£50,000 for 40% between two Dragons.