Equity is the business term for the percentage ownership entrepreneurs negotiate with Dragons' Den investors.
When a contestant offers a dragon 10%, 20% or another stake, that percentage represents part ownership of the company. In return, the investor may provide money, expertise, contacts and support intended to increase the venture's value.
Equity differs from turnover, which is the revenue a business generates, and profit, which remains after costs are deducted. It also differs from a loan, where the lender normally expects repayment rather than ownership.
The percentage discussed on camera may change during negotiations. A dragon can ask for more equity, several dragons can make a joint offer, and due diligence can alter or end a deal after filming.