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Packaging took centre stage in last night's Dragons' Den as the millionaire investors agreed to invest £60,000 in a recycled packaging start-up.

Former radio DJ Christian Richardson and business graduate Rachel Watkyn appeared on the BBC programme, in which entrepreneurs attempt to persuade millionaires to invest in their businesses, seeking a £53,000 cash injection into their recycled jewellery box company, The Tiny Box Company.

The pair, who were prepared to give up a 20% stake in their firm for the investment, claimed to be the only company in the UK that solely deals in recycled packaging.

The six-month-old start-up produces decorative boxes for the gift and jewellery sectors and were hoping to use the funds to plug gaps in seasonal trading, in particular to run the business while preparing for the Christmas rush.

Peter Jones picked up on their pair’s life story – they had started the business after Watkyn had suffered from a life-threatening bug in hospital and Richardson had come out of rehab – and made an offer of £60,000 for 40% of the business, as long as fellow dragon Theo Paphitis came in on the offer.

Paphitis, who had earlier urged them to run their business with a recycled division and a non-recycled division, agreed to invest after questioning the two closely on their commitment to the business.

However, the Dragons had initially appeared unimpressed by the company. Duncan Bannatyne was the first Dragon to pull out when he accused Watkin of being on an ecological crusade and claimed that his eight-year-old daughter could make a better box at school.

Deborah Meaden, the travel tycoon, pointed out that other companies also produced recycled boxes, albeit among other products.

Watkyn retorted that packaging companies she had contacted would often offer recyclable rather than recycled boxes. The knowledge within the companies [of the difference] just wasn’t there. As a consumer, if I want to buy recycled packaging, they couldn’t give me the answers, she said.

James Khan quizzed the pair on their customers, which include Google and Tate Galleries, but pulled out later, saying that the business was not viable.

Deborah Meaden was the next to pull out, saying that although she liked the ecological bent of the product, the market was too small. People’s purchasing is still driven by price and what it looks like first, and recycling second, she said.

Another packaging inventor had less luck. Elizabeth Pimm went to the Dragons looking for £120,000 to develop individual disposable nappy packs, which she had invented after being caught short while out with her grandson.

Her invention was rejected after Duncan Bannatyne, who has six children, told her that such a product would sit in his car’s glovebox and never be used.

Peter Jones added his view that Pimm had invented something that doesn’t need to be invented.

Watch the episode on the BBC's iPlayer by clicking here.