In the BBC show Dragons' Den, the percentage of a business offered to an investor is called equity.
Equity represents ownership in a company. When an entrepreneur offers a dragon, for example, 10 percent equity in exchange for investment, the entrepreneur is proposing that the investor receive a 10 percent ownership stake, subject to the terms of the deal.
Equity is different from turnover, which is the money a business brings in from sales, and profit, which remains after costs are deducted. It is also different from a royalty, where an investor receives an agreed payment linked to sales or revenue rather than ordinary ownership.
Valuation is central to these negotiations. If a founder asks for £50,000 for 10 percent, the implied value of the whole company is £500,000 before considering the precise legal structure and conditions of the offer. The figures shown on television are therefore both ownership proposals and valuation signals.