In Dragon's Den, the percentage of a company offered to an investor is called equity.
Equity represents ownership. When an entrepreneur offers a Dragon 10% equity, the proposed deal would give that investor a 10% ownership stake in the business, subject to due diligence and the final agreement. In return, the entrepreneur normally seeks investment money, expertise, contacts, or a combination of those resources.
Equity is different from revenue, which is money generated by sales, and turnover, a term commonly used in the UK for a company’s sales income. It is also different from a dividend, which is a payment made to shareholders from profits or reserves. These terms can all arise during a pitch, but they describe different financial concepts.
A televised agreement is not necessarily a completed investment. After filming, the parties can investigate the company’s accounts, intellectual property, debts, and legal position before finalising the deal.