In the UK television series Dragon's Den, what do entrepreneurs generally offer in exchange for a Dragon's investment?
Answer
Equity in their business
In the UK television series Dragon's Den, entrepreneurs generally offer equity in their business in exchange for a Dragon's investment.
Equity means an ownership stake. For example, a founder might request money and propose giving an investor a stated percentage of the company. The Dragon then decides whether the valuation, opportunity and proposed share are attractive enough to justify an offer.
The negotiation can change the percentage or the amount invested. More than one Dragon may also collaborate on a deal, sometimes combining money, expertise and business contacts. A televised agreement is not necessarily the final completed investment, because due diligence and legal negotiations can follow filming.
This structure distinguishes Dragon's Den from a grant competition. The money is presented as commercial investment, and the Dragon expects ownership and the possibility of a financial return.