In the British television format Dragon's Den, entrepreneurs usually offer investors equity in return for funding.
Equity means an ownership share in a company. During a pitch, a founder normally states how much money is wanted and what percentage of the business is being offered. The Dragons then judge whether the proposed valuation is reasonable and may make an offer for a different share or under different terms.
An equity deal gives the investor a potential financial return if the company grows, pays dividends or is sold. It also means the entrepreneur gives up part of the ownership and may gain a Dragon's advice, contacts and publicity. The exact terms shown on television can still be changed or abandoned during legal due diligence.
Equity is not the same as a loan. A loan normally has to be repaid with interest, while an equity investor accepts ownership risk in exchange for possible future value. Entrepreneurs may discuss royalties, loans or other structures, but the standard Dragon's Den bargain is investment for an ownership stake.