Why Peter Jones gave band £75K

Entrepreneur Peter Jones has managed to outbid the rest of the dragons to buy a stake in the future of a band called Hamfatter on the first episode of the new series of Dragons' Den. He's loaned them £75,000 in return for 30% of all future royalties. He explains why he outbid the others.

What have you done with Hamfatter so far then?

They've already recorded the album, which is out in August. They've recorded the single, which actually comes out on 11 August. It's called The Girl I Love. It is out at the moment to download.

So what's the deal? Are the band signed up to a record label?

No. They've actually got their own label. What they're doing is, they're going to go and promote it themselves. They're going to distribute it themselves and, on top of that, we're then going to start to do the tours and the events and everything like that. But it's going to be run like a business. And that's where it's different.

Read an interview with Hamfatter singer Eoin O'Mahony

Before you signed up a band, they signed up to a label in the past, they got 10% or they got royalties and then they got to keep their money on events. There's no money in records today. It's all on events and tours. So, we've started a business and I think this will be the future. This is what Guy Hands is going to have to do with EMI Records.

What if they've only got one good song?

You know. It did worry me that. I think that's a good point. When you hear their music you kinda think, 'I like that.' And I like the name Hamfatter, I thought it was really good. And when I heard them play it was a little bit like Coldplay with amphetamines sprinkled in their tea. There was something different about them.

Where does the name Hamfatter come from?

I did ask after the programme where Hamfatter came from. And apparently it comes from the term, hammy, which is hammy acting, which means a third-rate minstrel.

Peter Jones was talking to Chris Moyles from The Chris Moyles Show on Radio 1.