In Dragon's Den, asking for £100,000 at a £1 million valuation means offering 10% of the company.
The calculation follows the basic relationship between investment and valuation: £100,000 is one-tenth of £1 million, so the investor would receive one-tenth of the business if the stated valuation were accepted. Entrepreneurs on the programme generally state both the amount they want and the equity percentage they are prepared to surrender.
This is a mathematical example rather than a claim that every Dragon's Den deal uses the same percentage. Investors may negotiate for more equity, offer less money, or decline entirely after questioning the figures. A valuation also depends on assumptions such as sales, profit, intellectual property and future growth. The percentage offered is therefore the starting point of a negotiation, not an automatic outcome.