In Dragons' Den, a pitcher asking for £100,000 for 10% equity is offering 10% of the company. Equity means an ownership share, so the stated percentage is the portion offered to an investor if the deal is completed.
The request also implies a company valuation. If £100,000 buys 10%, the pitch values the entire business at £1 million before considering any other terms. This calculation is one of the central financial ideas in the programme.
The percentage is not a loan interest rate and does not describe the investor’s share of annual sales. It represents ownership, normally with rights defined by the final legal agreement. A dragon may respond by requesting a larger share for the same money or by offering a different amount.
Televised negotiations often change the original proposal. The final deal may therefore use a different valuation or ownership percentage from the one announced at the start of the pitch.