In the British television programme Dragons' Den, what do entrepreneurs generally offer investors in exchange for funding?

In the British television programme Dragons' Den, entrepreneurs generally offer equity in their business in exchange for funding.

Equity means an ownership share. When a dragon invests, the entrepreneur may give that investor a percentage of the company, so the dragon can benefit if the business grows or is later sold. The amount requested and the percentage offered form a central part of each pitch.

The dragons assess more than the product itself. They consider valuation, sales, profit, intellectual property, competition and whether the founder can execute the plan. A promising idea can still be rejected if the requested valuation appears too high or the business lacks evidence of demand.

The arrangement is not the same as a conventional bank loan. A loan normally requires repayment with interest, while equity investment gives the investor an ownership stake and business risk.