In the British version of Dragon's Den, what does an entrepreneur offer in exchange for investment?

In the British version of Dragon's Den, an entrepreneur offers equity in their business in exchange for investment.

Equity means an ownership stake. During a pitch, an entrepreneur usually requests a specific amount of money and proposes a percentage of the company. If a Dragon accepts the valuation and terms, the investor receives shares or another agreed ownership interest rather than simply lending the money at a standard interest rate.

The negotiations can change the percentage offered. A Dragon may believe the company is worth less than the entrepreneur’s valuation and ask for a larger stake, or several Dragons may make a joint offer. The final television agreement can also be subject to due diligence after filming.

This is why the programme is different from a conventional bank-loan show. The Dragons become business owners or shareholders, linking their potential return to the future performance and value of the company.