In BBC's Dragons' Den, entrepreneurs usually offer investors equity in exchange for funding.
Equity means an ownership stake in a company. When an entrepreneur offers a percentage of equity, the investor may receive a share of the business and potentially benefit if the company grows or generates returns. The percentage offered is central to negotiations because it must be compared with the amount of money requested and the implied valuation of the company.
For example, an offer of £100,000 for 10 percent implies a business valuation of £1 million before considering the precise deal structure. Dragons often challenge entrepreneurs when the proposed valuation appears too high or when the requested stake does not match the risk involved.
Television agreements can also be subject to due diligence after filming. A deal announced on screen is not necessarily completed until the investor checks the accounts, legal position, and other claims. Equity remains the standard answer because it describes the ownership exchanged for investment.